How to get a loan approved is the basic problem that most loan applicants face. The basic answer to this query is that for any type of loans, approval will rely heavily on how Loan Company officers will rate your risk factor if ever your loan is approved. The risk factor is very important to lending companies when they try to see if you are a good fit to be provided with a monetary assistance or UOB gold from Singapore pawn shop.
This is usually determined by the way you have filled and answered the basic question on your loan application and financial documents submitted. Basically, there are two important questions that require answers when you file your loan application.
The first question is whether you are a good or bad risk for the lending company and the second is whether the lending company will lose or earn money by providing you the loan. If both questions lead to positive replies, then you must have given the lender detailed and factual information relative to your capability in repaying the loan.
Therefore the first finance tips for the day is to make sure that the information you have specified in your application and supporting financial documents will give the lenders the confidence that you will make good on your loan.
Second, make sure that you have at least an average or preferably above average credit score from Singapore’s credit Bureau. Credit scores usually range from 400 to 850 so the higher your credit score is, the better are the chances that your loan will be approved. For security purposes, it is advised that your credit score should be in the vicinity of 700 or more to ensure better chance of approval. Third, make sure that your credit history will show that your past and present loan obligations are paid on time. However, loan official will not base their approval on your credit history because it cannot really determine whether or not you will repay the loan.
However, your credit history will show whether you have managed your previous and current loan obligations properly and knowing this is an indication on how you will again manage your debt obligations in the future. This is an important issue to the lender. Fifth, your employment history is another important factor in having your loan approved. Lenders would want to be sure that you have a job with tenure and that you are earning enough income to guarantee that you will be able to meet your monthly payment for the loan. Finally, you will have to show proof that your debt to income ratio is balanced. Lenders would want to make sure that after expenses, you would still have enough financial resources to meet your loan obligation with them.
Also in this regard, it is also wise to provide some kind of collateral for the loan, especially if the amount involved is quite large. Having collateral for the loan will ensure and give confidence to the lenders that they would have something to get from you in the event that you can’t make good on your loan.