Taking a loan is your only choice during a financial crisis if you have no savings or even an emergency fund. But not everyone is eligible for a loan and if a loan is rejected it will leave a mark on your credit history. Therefore, you must find out what are the chances of your loan being approved before you apply.
Lenders always look for a few basic criteria before they approve a loan.
- You must be able to show that you have a steady income and have the capacity to repay the loan on time and make the required monthly payments on time.
- In case you are not employed your chances of loan approval are slim but not nonexistent. Those individuals who receive government benefits will be able to procure loan as long as they prove they are capable of repaying the loan.
- A good credit history with no defaults or missed payments is the right criteria that everyone looks for though there are lenders who offer loans for those with bad credits too but these loans will come with higher interest rates and more stringent repayment schedules.
- You will have to provide details about your debts, expenses, and assets to help the lender determine if you have the capacity to repay the loan that you seek.
Based on the type of loan you seek the eligibility differs but essentially the above-covered points remain the same. With the help of online tools at nettivipit.fi you will be able to identify your current situation as these tools will analyze your data and match it with lenders whose terms you meet. This way you will know beforehand if your loan will be accepted even before applying. This will keep your credit history free from dents and blemishes and will help you plan your finances suitably.