How you can get approved for a personal loan

Work on your credit score

If you know that you may need a personal loan in the future, start working on your credit score early enough. Paying your debts on time can help you raise your credit score. Lenders consider numbers above 700 as good. Look at your credit report early enough and confirm that it does not have any errors such as inaccurate credit limits.

Pay off your existing debts

If you have any other loans that you have not yet cleared, you should do this before applying for a personal loan. Try to maintain a 6-month gap before applying for a new loan so that a lender does not see a new loan as a burden to your income.  Avoid going beyond your credit limits and manage your finances responsibly. If you are struggling to clear debts, try to supplement your income with a side hustle. This can boost your debt-to-income ratio.

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Author: Donna Woods

  • 6+ years of experience in financial analysis
  • 5+ years of experience as a writer, published author, editor, and screenwriter