How to avoid your Personal Loan application being rejected
Ultimately, there’s no way of knowing whether or not your personal loan application will be accepted until your lender tells you, but there are some simple fixes for your application that could prevent it from being rejected.
First of all, if you have a history of bad credit, you’re more likely to be rejected for a personal loan. However, while bad credit is usually pooled together as a group, there are various levels, and several years of your history will be viewable. Similarly, if you can’t prove that you have sufficient income, a lender will not approve your application, because they’ll be able to calculate that you can’t afford the repayments.
Having an unstable employment history can also have an affect on your application. Like a job interview, you need to be able to properly explain any gaps in your employment history, or fill them in, if possible. You need to show that you have a stable job, and therefore, stable income. You should also ensure that all of your details on your application are correct; if something is deemed incorrect, your application won’t be looked at further.
Your application also won’t be considered if you’re currently holding too many other loans, or if the purpose of your loan is doubted. You should doublecheck that it is a personal loan that would be best for the purposes you need financial aid, rather than any of the other types of loans that are available on the financial market from various lenders.