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How Not to Get Approved for a Personal Loan

Posted March 9th, 2010
by Staff

accessdenied2There’s plenty of advice out there about how to get approved for a personal loan. Most of that advice revolves around improving your credit score, and clearing up errors on your credit report. Really, at the end of the day, those are the most reliable ways to improve your chances of getting any kind of credit, including personal loans.

Still, there are some things that can hurt your chances of getting approved for a personal loan that you might not have considered. Here are some things that can be holding you back without knowing it:

  • Lie on your loan application. The fact of the matter is that the bank or other lender is going to verify the information on your application. If you don’t own your home, don’t claim to own it. If you make $35,000 a year, don’t claim to make $37,500. You’re going to get caught, and when you do the loan application is going to be denied. Even if you’re not sure you’d get caught, you don’t really want to risk it.
  • Get a cosigner. Many people are under the mistaken impression that having a cosigner always helps the loan application process. This is not necessarily the case. Even a married couple may find that they can get approved more readily if only one of the spouses applies for the personal loan.
  • Take out the loan to buy a house or car. The fact of the matter is that you can get a much better rate on your house or car loan than you would  a standard personal loan. Most financial institutions will ask you want you want to use the personal loan for, and if it’s for a home or car they won’t approve the loan but instead will point you to a more appropriate offering.
  • Wear a funny hat to the bank. You might be surprised to know how much leeway a loan officer at a bank really has when it comes to determining whether or not you get a loan. Dress your best, and make sure to be polite and on your best behavior when you go to the bank.
  • Ignore credit report advice. Your chances of approval really do rise and fall on your credit report and your credit score. Do what you need to do in order to make sure they’re the best they can be.

Photo via solidariat

Categories: Advice



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