Do you need money to finance your university expenses?
Are you short of cash to repair the backsplash?
Do you fear exceeding the bill payment deadline?
Whatever the situation, you find yourself in an utter cash requirement at times. Not having access could lead to serious circumstances. Here, short-term cash facilities like loans may help. You can check out and get one quickly for your needs.
Wait! It is easy to get one, but no lender guarantees the loan approval. For that, you must meet the required terms and conditions.
Most individuals qualify for most terms, but if you fall on one, the lender denies the loan. Thus, you must prepare and research your prospects well before applying for the loan.
If you have been rejected even after optimising your profile, you must have skipped other parameters. The blog may act as your checklist to prepare and get approval on the loan on the first attempt. Moreover, it would help you get one quickly without delay and confusion.
How to get quick approval on loans from affordable direct lenders?
Whatever reason you want a loan, you must emerge as a reliable borrower to the lender.
And how can you do that?
You can achieve that by simply proving your affordability on the loan. For this, you must present an authentic income proof. It would help you get the lender’s attention. Secondly, keep your spending low to get a quick and affordable loan quote. Here are other ways to ensure a quick loan approval:
1) Optimise your credit profile
Your credit score and report reveal the terms and the interest rates you get. Thus, the first thing should be to analyse your credit score. If you have neglected it for a long, it is high time to improve it. Moreover, you must do it before applying for any life-changing loan.
Analyse aspects like- debts, credit card pending payments, electoral roll updates, address updates, and joint accounts and improve these. It would boost your credit score and give you access to an affordable range of direct lenders.
2) Explore and pre-qualify for the loan
Next, explore the best loans available for your credit score. It would help you shortlist some lenders. Analyse whether any of these provides the flexibility to pre-qualify.
Pre-qualification does not imply guaranteed approval. Instead, it helps you analyse the chances of getting the loan and the approximate costs. It would help you choose the best one for your finances and requirements.
3) Check and compare the loan origination fees
Lenders charge a few costs, like origination fees, establishment fees, and closure fees, apart from interest costs. These may change the overall payment amount. Analyse such costs and choose the right one for your needs. Moreover, beware of the lenders charging additional or hidden charges. If you suspect any, enquire before mailing your approval. Generally, additional costs are hard to spot on an agreement. However, a genuine lender would help you know and clear your confusion. It helps one partner with the right one.
4) Identify the mode of loan repayment
No lender guarantees the loan unless the person shares the flexibility and ability to pay it back comfortably. It is the financial statement that every legal lender follows.
Thus, if you have unstable income or lack any, you may not get it. Even if you get it, you only get a minimal amount that may not suffice.
Explore the best ways to:
- Gain a reliable job opportunity
- Increase your income
- Get an additional income to support your application
- Switch jobs for better income and flexibility
Suppose approaching the lender for a long-term loan like- a car loan. It requires a long commitment and a recurring and comfortable income. Having a high and reliable income with low liabilities may fetch you lower interest rates.
5) Eliminate any risk for the lender
Lenders sense risks on profiles lacking- income reliability, affordability or premium credit score. It is the most common situation for the self-employed, unemployed and individuals in between jobs. Here, you can improve your prospects by:
- Revealing the last self-assessment filed (self-employed)
- Tax benefits (self-employed)
- Any pending projects under the belt (self-employed)
- Additional or part-time income proof (unemployed)
- Getting a guarantor on the loan (if the lender demands or you need a huge amount without having a stable income)
These options seem promising to the lender. He may analyse the amount you can legally qualify for within these circumstances. Precisely, additional income and support on the loan help you qualify easily. It is a critical factor if you approach direct lenders for a loan with no credit check facility. The sole way to qualify is by presenting regular income proof. The credit check does not impact the credit score.
To gauge the best of this, ask the lender about the possibility of qualifying for the loan. He may help you with the personalised advice. Accordingly, you can decide and move ahead with the loan application.
6) Have the necessary documents ready
Well, you are not done yet!
To get the attention of the lenders towards your application, follow the rules. It says, “Keep the documents ready to process without further delay.” When you approach a lender for a loan, he generally outlines the documentation requirements. You can pre-qualify to know the required documents. Once you know it, keep the first and Xerox copy of the documents ready.
General document requirements include:
- ID proof- driving licence/passport/ ID card
- Address proof
- Income proof- regular/ part-time/ business/ self-employment
- Guarantor and his financial requirements- if the lender calls for it
- Electoral roll
- Bank statements
- Asset to be put up as collateral and required details
7) Choose an easy-to-pay loan repayment term
Last but the most crucial part of the loan agreement is – finalising the loan repayment term. It is the term up to which you want to pay the loan in instalments. You can decide the term according to the duration you can pay the dues comfortably within.
For example, if you need £2000 urgently to refuel the car tank, you can clear the debt with interest rates within 3-4 months. It is when you have an average salary package.
Similarly, if you need a loan to update your lifestyle, like- home improvement, the duration may exceed 5 years. Choose according to your affordability, liabilities and income.
These are some expert ways to get approval on the loan. Just analyse the best lenders within your credit score and explore the terms. It would help you know whether you can afford the loan potentially. Moreover, keeping the documents ready and selecting an affordable amount enables you to get the approval immediately.
Lisa Ann has developed a well-experienced professional career. From managing the staff of more than 50+ loan experts at Fastmoneyfinance to boosting the delivery of various loan offers, she has acquired many challenging roles to come out with the best results for the company. Lisa Ann is a Senior Content Author and the Chief Financial Advisor at Fastmoneyfinance. To back her massive experience in the UK’s financial industry, she has the postgraduate degree and diploma in Business and Finance.