If you have recently come to live in the United Kingdom, you might find applying for a short term loan a challenge. Getting rejection after rejection could be a frustrating experience. If you find yourself needing cash urgently, your best recourse for the moment is to borrow from friends and relatives. However, you can do something to improve the way lenders consider your application. Here are some ways to get quick approval of your loan application.
Check Your Credit History
While most short term loans in the UK do not require you to show your credit history, lenders have their way of knowing whether or not lending you money could be risky. Your credit score affects the terms of the loan. You might be paying a higher interest rate than borrowers who have high credit scores. If you have failed to pay a debt, a credit card balance, or a utility bill, all these could show up in your credit history. Paying old debts could do wonders to your credit history and improve your chances of getting a loan at a low-interest rate.
Reviewing your credit history would reveal if there has been an erroneous report that lenders might not like. If you find the wrong information, you must contact the company or person that made that report and ask him to change or remove the incorrect data.
Find Out If You Are Qualified for the Loan
One way of ensuring the approval of your loan application is by making sure that you are qualified to apply. Perhaps the reason that lending companies reject you request that you are not eligible to apply. Check the qualifications on the lender’s website and make sure that you meet all the criteria. Several rejections imply that no lending company trust you enough to extend you a loan and this information could land on your credit history. The usual requirements, when applying for a loan, are your age, residency, and employment. You must also pass the identity verification process.
Before completing the application form, go over all the requirements. If you do not meet even just a single criterion, applying for a loan would be a waste of your time.
Prepare All Necessary Documents
All lending and financing institutions would ask for some documents to attach to your application form. The most common of materials that lenders would want to see are your payslip if you take a payday loan, your bank statement, monthly bill payments, or certificate of employment. Although some short term loan agencies may require one or two documents, having all at hand would make the processing of your application more accessible and faster.
Show that You Can Afford the Loan
One way of proving that you can afford to repay your debt is by applying for an amount that you can manage to pay. If you have a small salary and several expenses, borrowing what is more than you can afford could lead to the rejection of your loan application.
Calculate your total expenses for one month and deduct this from your monthly income. Use the remaining amount to determine the amount to borrow. Make sure that the monthly loan payment would not exceed your monthly net income.
Choose the Right Loan
If you are borrowing money for the first time or if you have a poor credit history, chances are you would not qualify for long term loans yet. You would have better chances of getting a short term loan or a payday loan if you have a stable job.
You do not know when a problem strikes, and you find yourself in dire need of cash. By improving your chances of taking a short term loan, you would be able to deal with emergencies that would require immediate expenses.