You never know when you will face a financial emergency. And when it hits, you know that you want your personal loan approved ASAP.
Simple loan applications and quick cash. Also, you would want to avoid loan scams at all costs!
However, are there tricks to get your personal loan approved quickly? What can you do to convince the financial institution that you are a responsible borrower?
So, if you have no time to waste, you’re on the correct webpage.
Here are the best solutions to shorten your loan application’s approval time. Keep reading below:
Table of Contents
1. Improve Your Credit Rating FAST
If you need fast approval for your personal loan, you need your credit score to shine. A higher credit rating is associated with a lower chance of loan default, and obviously, financial institutions want to minimise this risk.
So how do you clean up your credit score fast if you need an urgent loan today?
Usually, it would take months – or even years – for your credit score to improve after changes like:
– Paying all of your bills timely
– Reimbursing everything you owe
– Understanding your shopping patterns
– Eliminating impulse buys
– Learning to spend calculatedly according to your budget
All of those actions benefit you in the long term – there’s no doubt about it. But here’s the secret to cleaning up your credit score quick:
Get a copy of it from Credit Bureau Singapore and check it for errors. You’d be surprised how often these mistakes can squeeze in unsuspectingly and damage people’s accounts.
Do check if they have wrong accounts, or if there are any accounts that you have not closed completely. Meaning that you’ve wanted to close those accounts but they are still marked open. Lastly, check for wrong credit limits.
If you find any such error, dispute it ASAP to increase the chance of your personal loan’s fast approval.
There are financial institutions in Singapore that can understand your situation no matter your credit score. Check out these reputable companies here.
2. Consider The Debt-to-Income Ratio
Many applications are rejected because people have small incomes compared to their debts. You can change that ratio by:
– Increasing your income. You can consider part-time work or renting a room in your home – but that takes time. You can also check to see if you’ve missed some sources of income on your application. For example, your salary may be small – but at the same time, you may be getting alimony, revenues from interest, or an inheritance. Make sure to include those income sources in your application as well.
– Reducing your debt. If you have liquid assets like stocks, sell them to pay any high-interest loans.
3. Apply For The Right Loan Amount
Before applying for any personal loan, your mantra should be “never ask for more than you can afford”. Requesting a sum that’s obviously out of your reach:
– Pushes licensed moneylenders/ banks away because they perceive you as desperate or, at the very least, clueless about finances
– It is dangerous if someone approves your loan because your budget will take a significant hit. In the best case scenario, you’ll have to make enormous sacrifices until your loan’s reimbursed. Worst case scenario, you’ll have no choice but to default on that loan.
So ask for the maximum sum you’re eligible for, consider:
– Your budget. Consider all your financial obligations, including a potential house loan or education loan, utility bills, lifestyle, etc.
– Your credit score.
– The TDSR (Total Debt Servicing Ratio) in Singapore is a maximum of 60%, which means your loans can’t be more than 60% of your current income.
But what if that sum you’re eligible for is too small for what you need?
1. Break down your goal into several objectives.
2. Rank these objectives according to urgency and importance.
3. Use the money you have to solve the most pressing problems.
4. Repay your loan diligently to show financial organisations that you’re a trustworthy customer. This strategy increases your chances of obtaining a better loan next time.
5. Apply for a new loan to solve your remaining objectives or to consolidate all your debt.
4. Get A Co-signer
Getting a co-signer will guarantee your personal loan’s fast approval, especially if they have a high credit rating and income. Just make sure the person you’re asking:
– Understands the risk, and:
– Can afford that risk
If you can’t get a co-signer, consider a secured loan that will give you access to more significant amounts and lower interest rates. Of course, we wouldn’t advise you to mortgage your home for a $1,000 loan. However, you can discuss the possibility of sufficient collateral with your loan officer.
5. Choose The Right Financial Partner
It’s essential to find the right loan agency or bank if you want fast approval for your personal loan. Some licensed moneylenders in Singapore specialise exactly in:
– Fast personal loans
– Emergency loans
– Foreigner loans
– Low-income loans
– Renovation loans
– Credit card debt consolidation plans
Many banks in Singapore have also customised their offers to provide these particular loan solutions. These offers include:
– More accessible eligibility criteria
– Less paperwork
So, when applying for an emergency loan, choose a financial institution that tailors to your problem. You can:
– Compare rates and terms
– Search for these specific offers on banks’/ licensed moneylenders’ websites
– Heed customer reviews about how these agencies/ banks handle emergency loans
Is it better if I apply with multiple lenders?
Sadly, the answer is no.
Multiple applications aren’t equivalent to a personal loan fast approval. Instead, they’re deemed as a desperate attempt because financial institutions can see you’ve sent these applications to other agencies. The consequences are that:
– More agencies/ banks reject your submissions.
– You’re left with no opportunities.
– Your credit score plummets.
6. Online Application
It is a lot easier to apply for a personal loan in this day and age.
Sending an online application is one of the best ways to secure your personal loan’s fast approval. That’s because:
– You can upload the needed documents quickly
– Some licensed moneylenders in Singapore allow you to connect directly to your SingPass to retrieve the necessary data
– You get a quick pre-approval message in minutes, so you’ll know where you stand with your application
After that, your loan officer is legally obligated to arrange a face-to-face meeting at their HQ. However, agencies and banks that specialise in these emergency loans will set that interview quickly so that you can obtain your cash within 24 hours.
Check out the list of top licensed moneylenders in Singapore here.
7. Keep Your Documents In Order
You may not need your paperwork for the online application, but you’ll certainly need it for the face-to-face meeting. So keep your documents well organised at home in separate folders.
If they do not ask for a face-to-face meeting, you are definitely dealing with a loan scam.
As a rule of thumb, you’ll need proofs of:
– Identity: NRIC, Passport
– Address: Utility bills, official letters with your name
– Income: Past few months’ pay slips, NOA, CPF statements, or bank statements
To quicken your loan application process:
– Make sure you fit the eligibility criteria.
– Include all documents requested by the licensed moneylender/ bank.
– Double-check for any typos.
– Include all income sources
Don’t Lose Hope
It is possible to quicken your personal loan application process as long as you work with the best organisations. Remember to work with a trustworthy and reliable financial institution that can be there for you.
Lazy to search for the list of best financial institutions in Singapore? Don’t worry, we gotcha!