How to Boost the Odd of Loan Approval

Being a trusted customer is important because the bank implements a reference system to capture its customers. The references here include our financial history track record, whether it’s the amount of savings, to the credit history we’ve had and done. Will you read more if you are the newbie to a lending field? On the other words, this may be your first experience to loan application or borrowing money.

All of these things are important to keep you from rejecting credit. Because, when you submit an app, lenders have a secret way to track your financial history. Do you really have a good credit history, where do you always pay the previous debt repayments on time? To boost the odds of getting loan approval, why do not you try these tips?

1. Fix Account Records

If you work as an employee, the bank will ask for a paycheck as proof that you do have the same amount of income each month. However, the bank will not immediately believe with the slip. Therefore, the bank or lender will also ask you to show you the statement of your current account or savings account. It’s to prove that you do have the same amount of money that comes in every month.
2. Current Debt Payment

If you have debt such as credit card or other debt, try to keep the bill, not to a standstill. The bank has the ability to analyze your actual financial condition. Because, if you ever stuck to credit payments elsewhere, then your credit application may be rejected because the bank is afraid the same thing can happen again.

3. Set the Proportion of Installment

There is a possibility that the lending institution will reject the loan application if your total debt installment (including the new loan will be filed) exceeds one-third of the income. The reason, the bank did not want you to trouble pay for other needs and was forced to take the portion that should be used to pay the debt installments.

4. Complete the Required Document

Lack of documents is another reason why you do not get loan approval. Therefore, check the completeness of your documents even before going to the lending office to apply for a loan.