Whether you are applying for a personal loan, a private student loan, or a mortgage loan, the last thing you want is to go through a long protracted process not knowing if you will qualify in the eyes of the lender. There are a number of ways in which you can speed up the loan process, thus saving yourself anxiety, or possibly missing out on a vital loan or house purchase.
Begin by knowing what you need and make it your business to know your lender and if their product is the right one for you. Have a back up lender in mind too, just in case your first application is unsuccessful. You can also mention the other lender if the lender you choose appears to be dragging their feet.
Put yourself in the best possible position to be sure of obtaining the loan. You should know what your credit score is, and what information your credit reports hold on your financial history. There may well be errors which should be rectified in advance of any loan application. Similarly, if your credit score has room for improvement work on that before making any loan application, as the higher your score the more likely you are to be granted your loan with ease, and at a more favourable interest rate too.
You can improve your score by ensuring you carry a low debt ratio and by having no outstanding debts. If you are already using a lot of credit this may well be a bad sign to a potential lender as they will be concerned about your ability to handle further credit, so have it in good order when you apply.
Once you ‘know’ your lender and have ensured your credit score will pass muster, prepare all possible documentation you will need to supply to the lender. File it in an organized manner so you are not in the position of searching for odd bits of paper. Be prepared to explain any previous blips on your credit report if you have them. Make sure that details of income, employment, addresses, bank statements, or whatever other documentation your lender requires, are all readily available.
If the relevant paperwork is all submitted with the application it is likely your loan will be dealt with in a much speedier fashion than if the lender needs to constantly try and contact you for further details or missing paperwork. Do make yourself available if the lender calls and deal with any requests as promptly as you can, ensuring your application does not work its way to the bottom of the pile.
If you are a student needing a private student loan then you will almost certainly be required to have a co-signer guarantee your loan if you have no credit history of your own. Be prepared for this in advance and have a co-signer lined up ready and willing to commit to you. Make sure that the person who you request as a co-signer has a good credit score of their own, as they will need it to actually be approved as your guarantor.
Finally when your application is being processed be proactive. If you don’t hear from the lender then telephone and ask to know the current status of your application. Lenders are busy and it may prompt speedier dealings with your application.