Everyone wants to get their loan application approved right away, especially those who badly need additional funds to finance their expenses. However, sometimes these individuals are stuck in a long approval process or worse, a denied application.
The latter is very discouraging for some applicants who badly need the money but don’t want to jump into the resolution of taking out loans through other resources, such as borrowing from a family or friend or resorting to payday loans.
But don’t fret. While it’s true that some loan approval process takes a longer course due to protocols some lenders undergo, there are ways you can do to speed up the process. These steps are simple, yet loan applicants tend to miss these things out, so they become frustrated due to the long waiting period.
The Loan Approval Process
It is imperative to know that the loan approval process differs from lender to lender. That also means each lender has a duration of time to get a single loan approved, including the funding.
Before you apply for a personal loan, make sure that you have checked your chosen lender’s approval duration. This would help you manage your expectations at the early stage of the application process.
Fortunately, quick loan approvals through online lenders have become one of the most tapped loan providers. Their numbers are increasing, and they are very accessible. Typically, loan approval from online lenders can take a few hours to a few days. If your credit rating is too low, you might be approved for a longer period. However, if you have good credit standing, expect to get approval without waiting too long.
Other loan providers, such as peer-to-peer lenders, banks, and credit unions, have a loan approval process that takes about a few business days. If you’ve prepared all the requirements and have a good credit standing, loan approval duration might be shortened, and the funding time reduced.
Speeding Up Your Loan Approval Process
If you plan to take out a loan and need the cash instantly, here’s what you need to know to speed up the entire application process.
Choose The Right Loan
Some loan applicants tend to forget the importance of knowing what type of loan that fits their needs. Financial experts advise that choosing the right loan for you helps the entire loan approval process. This way, you’ve already determined how much money you will borrow, the loan paying terms, and the interest.
It’s best to target what specific loan you want as you’ll be sure what specific documents you need to secure before applying for one.
Check Your Credit Score
This is a crucial factor that plays a significant role in getting your loan application approved. It is known that the credit score is a gauge meter. It’s an indicator of how much your loan interest will be and if you are eligible to enjoy other benefits, such as low monthly repayments.
Your credit score is also a basis of how fast your lender approves your loan. If you do have a good credit standing, that means you are a responsible payer. If not, there might be a delay of approval or even a rejected application due to your poor credit background.
Gather Your Documents
You will need to prepare certain documents that your lender will ask you. Although it depends from one lender to another, they only need documents related to your employment and credit history. If you are applying to an online lender, they’ll require fewer documents to submit, which can benefit you.
Determine The Amount You Will Borrow
As mentioned earlier, choosing your loan type is important. And it comes with a caveat, which helps you to determine how much you need. It would be best if you were specific with the loan amount you will borrow. Setting a sky-high amount that is not within the means of your current employment and finances may be a detriment to your loan approval when the lender assesses your application.
Put simply, indicate an amount you can realistically repay on time.
Present Relationship With The Lender
Establishing a good relationship with your lender works if you plan to take out a loan with a financial institution, like banks and credit unions. If you do have a good relationship with these institutions, they can quickly process your application. This is because you have already built a good credit history with them. They can assess that you are a responsible borrower, which helps your application to be approved quickly.
Taking out a loan due to financial shortage or other financial-related reasons has been a trend. It has been an easy solution to various financial problems. However, the problem arises when the loan application is delayed or denied. But there are also ways to speed things up and receive the loan amount quickly. Loan applicants just need to conduct research and talk to financial experts to sort things out.