Being rejected for a nopea laina is always de-motivating especially if the loan was being taken for critical purposes such as marriage, education, house repairs and so on. While we do not have control over the lender approving or rejecting our loan, we can improve our chances of procuring the loan by keeping a few tips in mind.
You should make it a routine to check your credit score every six months. This keeps you in control of your financial situation. Lenders use the credit score as a primary differentiation while approving or rejecting loans. The advantage of checking your credit score regularly is being able to rectify any errors on your report. A credit score above 700 is considered excellent. While you may not have the desired credit score now, there are various things that you can do to improve the same.
Firstly, avoid applying for loans that you do not qualify for. Every time you apply for a personal loan, it reflects on your report and your score takes a hit. In addition, if the loan is rejected, the damage is a lot greater. Apply for a loan only when you need one.
Determine The Type Of Loan
You should be able to differentiate the difference between a secured loan and an unsecured loan and when each of them is offered. Someone with a good credit score will qualify for an unsecured loan like a personal loan or a credit card easily. If you credit is not good enough, you may be given the option of a secured loan like putting up your home or your jewellery as collateral.
While secured loans are easier to procure and the turnaround time is quicker, you may lose the collateral is you are not able to repay on time.