How to get a personal loan

1. Write off your debt

The more loans you have pending, the less likely you are to get a Personal loan. It’s as simple as that. So clean your pending credit card contributions before requesting a new to lend. If it is not possible to pay in full, pay off at least part of your debt in advance. Plus, keep your monthly debt-to-income ratio below 40%.

2. Pay attention to your Credit score

The 100 percentiles are rare in the credit world; but if you have a credit score above 725, you are good to go. Anything over 800 points will make you a must-have property in the credit world. Keep in mind that lenders may charge you a higher interest rate for a lower credit score.

3. Income matters

Your current income is the most important point of your loan application. The higher the income, the better your chances of getting a loan. So when you apply for a personal loan or any other loan, mention your total income, and not just your salary.

4. Avoid multiple applications

Two things here – several apps can raise a red flag about your financial situation. In addition, your credit score will go down if more than one lender inquires about it.

5. Choose a lender wisely

Different personal lenders require you to meet various types of eligibility criteria. So it is better to check the prerequisites before applying for a loan.

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