Personal loans are ubiquitous in importance as they satisfy sundry financial needs. It makes them recur for varied purposes. You feel the need to apply for them repeatedly. Vacations, medical reasons, wedding, education, they fulfil every objective.
However, getting approved for a new personal loan with already one in your name can be tricky. Before you lose hope, it is better to pay heed to some promising ways that can help you get the other one despite the existing one.
Be a good borrower
‘Good borrower’ denotes the practice of making the timely repayments of the current personal loan. When you apply for the new one, the lender is sure to act curious on how you are performing in the repayments of the other loan. Pay the instalments on time, and you can win the trust of the loan company easily.
Show an extra income
The loan eligibility is subject to creditworthiness that is judged through income-outgoing ratio. With already one and other monthly expenses, it cannot be very easy to prove your capacity to afford another borrowing. If the rate is less than the idol one of 60:40 or in case of some lenders 70:30, then rejection may happen. Showing an extra income is a great way to calm down the anxieties of the loan lender on your ability to bear a new financial burden.
Prove to the lender that you will pay off the old one soon
It is one more strong reason to convince on your eligibility for the new bunch of funds. Show a sum of money in your bank account that is destined to be used for paying off the previous loan. It can be even the bumpy roads that are obstructing your way to get the next one.
Suppose you are applying for the funds in January and in March, you will pay off the past debt. Tell the same to the lender; if possible, arrange at least 70% of the amount of the prior personal loan in advance. By showing it, you can quickly get approval.
The Income of your partner can be paired with your earnings
To show your financial capacity stronger, show the income of your partner. It makes a big difference, and your way to the acceptance of the application gets smoother. However, here, the policies of the lender are necessary to bring in consideration. Some lenders prefer to see more potential in the applicant only. The partner can be a support.
On the other hand, some are flexible enough to approve the loan on the income proof of the partner. Usually, online lenders are friendlier to this practice. They even have options in their online forms to mention the earnings of the partner (wife/husband) of the applicant. This liberty is easy to get in most of the lending companies in the case of personal loans, as the amount is not significant.
The concluding thought
The above measures can help you row the boat against the direction of the waves. Finance market can be complicated, but it has its logic too. Provide it with a due reason and the finance companies will show their efficiency to help you in stressful situations.