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Tips on bypassing rejection in case of personal loan applications

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Tips on bypassing rejection in case of personal loan applications

Approval for any personal loan application usually depends on several aspects including the income of the applicant, credit score, collateral requirements and so on. You should first check whether you are eligible for a personal loan or not. You can do this online and you will get the loan offers that you can apply for. In case your personal loan application faces rejection, you will have to wait it out for a period of 30-90 days before applying again with the same lender. Additionally, every time that you apply for a loan, there is a hard enquiry into your credit history and credit score and multiple such enquiries will impact the credit score poorly.

You should refrain from applying for multiple loans in a smaller time period. You can always bypass rejection by improving your credit score. This is possible by making payments on time and most importantly, repaying EMIs in a timely manner. You should ensure that the personal loan EMIs do not cross 50% of your net income. Your application will be rejected otherwise and you should always ensure that correct information is provided in the application form along with the valid documents. Always be completely honest while providing your information. If you have too many loans including credit cards, car loans or home loans, lenders may not want to approve the personal loan application.

In case you have a poor credit score, you can get a personal loan against some form of collateral or you can even opt for an unsecured personal loan. Check whether you meet the eligibility criteria, ascertain your credit score (should ideally be above 750) and undertake a review of your credit report. Always make credit card payments on time and repay loan EMIs in a timely manner. Avoid defaulting on payments and do not prematurely close out your loan since this can impact your credit score negatively. Always make partial repayments.

Make sure that your credit limit is not exceeded by all means. Always make use of just 30% of your credit limit in order to keep your credit score healthy. Refrain from applying for multiple loans simultaneously and you should always double check all the details and documents provided by you as part of the application. Make sure that you do not ask for a higher loan amount than what you need and are eligible for. These steps will help you avoid potential rejection for your personal loan application.

 

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