ard times don’t knock on the door when they come. It is you who should be prepared for anything that comes your way. The need to take a loan, big or small, can arise any moment and then you will have to assess your options from where you can expect help from. The conventional loan taking process is a very complicated one; with a lot of considerations to be made, it takes a lot of time and hassle to acquire the money you need. If you are someone with a very good credit score of say 750 and you are thinking that you don’t have to worry because you will be able to take a loan easily from anywhere, then you are wrong. Coupled with so much that is accounted for in your credit score, other things are also considered when the decision of lending to you is being made; and here even if you had good credit, your application can be rejected. This is where Achieve Finance is going to help you out as you can get a fast cash loans online, seamlessly.
The credit score is not the only thing that determines loan approval. There are 4 canons of loan approval actually: credit score, income, employment, and down payment.
- Credit Score: This the first and foremost determinant of your loan being approved or not; but it is not the only one. The credit score also known as the FICO score ranges from 300 to 850 and a score above 750 is generally considered to be good enough for loan approval. Most financial institutions have a lower limit of 720, below which you are ineligible for being loaned money. Your credit score can be seriously impacted by seemingly insignificant things like one late payment of your house rent or your credit card gets maxed out often, and these seemingly small things can lead your credit score to be as low as 600 or even 500 when combined together and render your application rejected for a loan from the bank. Don’t you worry, because Achieve Finance has got you covered.
- Income: Lenders consider your income as a major part of our loan application. They determine whether you will be able to pay back the monthly installments of the loan you are taking or not. Here it is important to know the technicalities, as there a difference in how you view your income and how the lender will and it is the lender’s view that is going to be important. For example, only that income would be considered by your lender that you have received for more than 12 months, this is a big problem if you have just recently joined a job with a better paycheck because your new income won’t be considered by the lending agency. Another drawback is that only documented income is considered by the lender, the income from your main source of income is likely to be the only documented income and all other sources like tips and the money you earn from a side hustle is not recorded; this will be a major drawback if you have income coming from a lot of sources and only a few are registered. In the end, it’s your Debt-to-income ratio that summarizes your eligibility for a loan. The lower your DTI ratio, the better and vice versa. To calculate your DTI ratio before applying is the way to avoid inconvenience; take the sum of your monthly loan payments and divide it by your monthly income (income that is recorded), and then convert the value into a percentage. If this percentage is lower than 28%, you are good to go but know this, anything higher than 36% will be not entertained. With Achieve Finance you don’t have to worry, you can get the money you need in no time because your need is given priority over your profile.
- Employment: Lenders don’t want to lend to people who do not earn enough, let alone earn anything in the first place. In other words, you need to be employed in order for your loan application to be approved by the bank. Employment with a reliable paycheck not only ensures that you will pay back the loan, but proof of employment also ensures the lender that you are who you say you are and not a scammer. Being someone who receives social security or pension is an exception, but for the other people there are some requirements: firstly, that you need to be employed in the same industry or field of work for the past 24 months and if you are self-employed you must have a monthly profit that has an upward trend. If you have been working at the same job or industry for 2 years this ensures that you have job security and you are not someone who is insecure financially: as people who change jobs frequently are generally considered to be less secure. The second requirement of having increasing profits if you have your own business serves as a guarantee that you have a stable business.
- Down Payment: Down payment is part of some loan deals that many people don’t know about and it is the easiest one to understand. A down payment is the money you pay upfront and in one go in any installment process. Having a large down payment might make the lender more generous with the interest rate. Down payment can help you get a loan approved if your credit score is low: a large enough down payment will help your loan application get approved. In cases where you are not in a position to make a big enough down payment or the money you have has not been in your account for more than 60 days, then you will have a hard time getting approved.
With Achieve Finance, there is only one pillar of loan approval: your need. Do not worry about credit score, income, employment or down payment, you just have to apply and get the cash deposited in your bank account.
