Rooting for a Bigger Personal Loan?

Whether you are dealing with a financial emergency or an unexpected medical expense, personal loans are the first reliable option that comes to mind, especially if you are not financially prepared to cater to the challenge at hand.

While small loans can be a great helping hand in times of need, they may not be enough in some cases. Some circumstances demand a bigger personal loan. Of course, one needs to go through a more thorough process and meet many other requirements to increase the charges of a bigger loan.

Here is how you can get a bigger personal loan.

Check Your Credit Report

The amount that you get approved as a personal loan highly depends on your credit statement. People with a bad credit score have a lower chance of securing a bigger personal loan. It is because a bad credit score reflects one’s negligence in financial matters.

On the contrary, people with good credit scores have a relatively easier experience securing bigger loans. It can be a great start to getting your financial matters sorted.

In addition, reviewing your credit report is also a great way of keeping track of credit fraud. If you see any suspicious activity, you can report it to the relevant authorities for further action.

Prequalify Before Application

Qualifying for a $ 15000 personal loan or more can be nothing less than a challenge. Sources such as Lantern by SoFi also recommend that you may need good credit and sufficient income to qualify for a $15,000 personal loan. 

Since a good credit score is so important, you can protect it from dropping by avoiding hard credit pulls through prequalifying for a big loan. Prequalifying for a personal loan lets you explore loan offers with a soft credit check. Although it is low-risk, prequalifying for a big loan application does not guarantee approval.

Reduce Your Existing Debts

Another important aspect to consider for a bigger loan is your debt-to-income ratio. Reliable resources and experts suggest that debt payments must be less than 35% of your income. If not, it can be an issue in you securing a better loan.

If you want to secure a better loan, you must look for ways to become debt-free. Do not pick temporary options. Look for ways to make things easier for you in the long run. The right practices you adopt at the moment can help you for a long time.

Apply for the Needed Amount

Since no one really inquires about the way you use your personal loan, many people make the mistake of lending a lot more than they need. After all, a bit of extra amount can be tempting for anyone after finding good terms for a loan.

Even if you are asking for a significant amount for a loan, make sure that you stay closer to the actual amount needed to cater to the expense at hand. This way, you can reduce your risk as much as possible and ensure good credit.