As we mentioned earlier, the first thing you need to figure out is your credit score which you can do from your local bank. Lenders tend to look at credit scores when deciding the terms they want to set against the loan that you are taking as well as the amount of money you can afford to repay. A good or excellent credit score means your job is taken care of, and you’re all set to receive that money, but a bad one means you will have a few rejections before a lender finally decides to take a risk on you.
The APR is determined by looking at your credit score, which further will determine the amount of money you can borrow. In an emergency situation, you want your credit score to be good or at least average if you want larger funds.
The best way to improve your credit score is to ensure all your monthly payments are taken care of on time without incurring more in the process. The more liability you have on you, the harder it’s going to get to repay those amounts, which is why lenders will frown at giving you any money.
A steady income is always appreciated when it comes to asking lenders for money. Make sure to reveal information about where you work, what your monthly or yearly paycheck is, and whether you are paying all your taxes on time or not. This factor will solely decide whether or not a lender will want to take the risk of lending you money at the interest rate set.
Let’s assume your income is unsatisfactory at most. That means more money going out of your pocket than coming in, which is not a great situation to be in.
Please make sure that you have a stable and satisfactory income that fits the criteria of the lender before you fill out the application.
If you want to reduce the risk and have a family member or a friend willing to take that loan with you, it can become a great asset for you.