5 Tips for Faster Personal Loan Approval

By: Raymond M. James

The personal loan has changed the way people manage their money. Whether they are looking for a way to pay off credit card debt, pay off other high-interest bills, fund a new venture, or go on a vacation, a personal loan can help all of their dreams come true.

If you find that you want or need some extra cash to take care of outstanding expenses or for other needs, then you are probably wondering if there is a way to get approved for a personal loan as fast as possible. To achieve that goal, consider following the tips listed below.

  1. Find the Right Lender

The first thing you need to do when it comes to getting approved quickly for a personal loan is to make sure you’re working with the right lender. Gone are the days of only being able to go to a local bank for a loan. With various places online, you can find the lender that’s right for you. You might even want to check out what Rapid Loans has to offer. As personal loan experts, they’ll get back to you as soon as they can—which might be a few hours after filling out the application.

  1. Meet the Minimum Requirements

The vast majority of lenders have minimum requirements that must be met before being approved for a loan. In general, you will be required to provide the following:

  • Proof that you are of age to receive a personal loan
  • Proof that you have a bank account
  • Proof that you have regular income
  • Proof that you are who you say you are
  1. Know Your Credit Score

Most lenders will check your credit history and look at your current credit score. To ensure that you get approved quickly, you want to make sure that you don’t have any defaults or bankruptcies on your report, and you’ll also need a decent score.

There are ways to check your credit report and score online, and you might consider doing this before you apply for a personal loan. If you find that there are any issues, such as incorrect information or accounts that need to be removed, getting these taken care of before a lending institution does their check is in your best interest.

When it comes to your score, the higher your score, the faster you’ll be approved. Here are the ways the scores break down:

  • Good is between 622 and 725
  • Very Good is between 726 and 832
  • Excellent is between 833 and 1,200

If you find yourself with a score below 622, this doesn’t necessarily mean you’ll be denied a loan. But it may mean that you won’t be approved as quickly as you would like. Thus, it’s in your best interest to do what you can to improve your score before applying for a personal loan.

  1. Make Sure You Have a Stable Source of Income

The biggest factor that will impact whether you get a personal loan quickly (or at all) is being able to show that you have a stable source of income. The lender wants to know that you have money coming in so that you can make your loan payment every month.

When it comes to your application, they will look at how long you’ve been at your current place of employment. The longer you’ve been at your job, the higher the chance you have of receiving a personal loan quickly.

  1. Show Them That You Can Pay Off Your Loan

The most critical element that will determine if you get a personal loan quickly is your ability to pay it back. To ensure that you’ll be able to achieve this goal, the lender will look at how much income you have and compare it to how many expenses you have. If you have more income than expenses, the higher your chances of being approved quickly for a personal loan.

Get Your Money Fast

If you’ve decided that you need a personal loan to pay off bills, fund a new venture, to go on a vacation or for other expenses, you will want to get your money as fast as possible. This can be accomplished if you follow the tips listed above and apply with the right lender.

About the Author:

Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.