What are the Requirements for a Successful Mobile Loan
Applying for a loan does not have to be too difficult if you prepare ahead of time. Here are the things that you need to have when applying for a loan.
You will need to provide a proof of identification which may be any government-issued ID such as a passport or driver’s license. Preferred IDs are photo IDs but if you do not have those, you can provide a copy of your birth certificate and proof of citizenship.
Proof of Income
If you are currently working, you need to prepare your two most recent pay slips. For self-employed individuals, you will need to provide a copy of your income tax return.
You must have an active bank account (savings or checking) where the lender can deposit the loan proceeds. Some lenders may also require you to submit your recent bank statements to support your application.
Guarantor or Collateral
If you are looking to take out a larger amount of money, it is best to have a guarantor who can co-sign the loan agreement with you. You can also choose to attach a property such as your home or vehicle to the loan. Providing a guarantor or collateral can increase the chances of getting your desired loan.
A borrower’s credit score is one of the most important factors in getting a loan approved. Maintaining a good credit score is crucial in obtaining better loan deals. However, if you don’t have a good credit score, you can still apply for a personal loan from a bad credit online lender.
Am I Likely to Be Accepted for a Loan?
If getting a loan has crossed your mind, you may be wondering whether you will qualify to get one. There are different sources of loan products, but most of them have similar requirements. In order to become eligible for a loan, you need to meet the lender’s criteria.
Although some loan providers may have different age requirements, the minimum age to get a loan in the UK is 18 years old.
The borrower must be legally residing in the UK or residing in the country where the lender operates his business. Lenders will always verify the information about the borrower's residence.
Lenders will always look at the borrower's work history. Most loan providers will require that the borrower is employed for the last 6 months.
Somewhat connected with employment, income is one of the most important factors that lenders consider when reviewing loan applications. Bad credit loan lenders will accommodate a borrower with poor credit as long as he or she has a stable source of income either from work or benefits.
Lenders usually require a borrower to have an active bank account because this is where the lender will deposit the funds. Having a bank account means that the loan applicant has satisfied the requirements of the bank to open an account with them.
Lenders are also particular with borrowers’ credit history unless the loan provider does not run credit checks. An individual with excellent credit score will find it easier to get approved for a loan than someone with a blemished credit reputation.
Is it Possible to Increase My Loan Amount
You’ve already taken out a loan when you suddenly realize that you need more than what you asked for? Or you already have an existing loan but something comes up and you need to get more funds? You may be wondering – is it possible to increase my loan amount? Many online lenders offer flexible loan options but of course, this will still vary from lender to lender. Normally, there are two ways to go about this:
Apply for a New Loan
Some lenders will allow you to create a new loan so you will have two existing loans. This means you will run two loans side-by-side. If you choose this option, you can save on closing fees.
Consider Top-up Loans
There are lenders who allow borrowers to top-up their loans. You will be allowed to open an entirely new loan with a higher amount so you can pay off your existing loan and the new loan’s remaining balance can be released to you. If you choose this option, your new loan may have an entirely different interest rate.
When it comes to loan amounts and terms, it is best to reach out with a loan specialist so they can discuss the most favorable arrangement for you. Choose the option that will help you save more in the long-term. Be honest about your needs so that the lender can work out something for you so that you can get the extra funds that you need at the best rates and fees.