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If you are looking to take out a loan but are worried about your chances of approval, there are many ways to maximize your chances for a successful application.

Improve your credit score

For the majority of loans, your credit score will have an impact on your application. In general, the higher your credit score, the better your chance at being approved. However, don’t worry if your credit score is less than perfect as you can build credit in different ways.

Stay on top of your finances – your monthly payments matter more than ever when applying for a loan. The more you can comfortably pay per month, the better it will look to lenders. So, for any existing credit, you should be paying more than the minimum when possible. This will increase your credit utilization ratio and boost your payment history, which will positively impact your credit score.

Check for errors – errors on your credit report can easily occur and potentially damage your credit score. The Consumer Financial Protection Bureau recommends checking to see that everything adds up, especially for things like wrong accounts, closed accounts which are still shown as open, and incorrect credit limits.

Increase your credit limit – if you contact your credit card company, you can request a credit card limit. You are more likely to be able to acquire this if your income has risen since you first took out your credit card and if you have consistently met payments promptly. However, always check with your creditor if this is a good idea as it could hurt, rather than help, your credit.

Key Points

  • If you are worried about being approved for your loan, there are ways to improve your chances
  • Have clear exactly how much you need to borrow and the purpose of the loan
  • Applying with a co-signer, improving your credit score or finding a lender to suit your needs, can all improve your chances

Only ask for what you need

Before taking out a loan, you need to understand the purpose of the loan and exactly what you will be using it for. This includes knowing exactly how much money you need.

When approaching lenders, you should only request the money you need to reach your financial goal. Asking for more money than you need may be viewed as a risk by lenders and reduce your chances of approval.

You also need to guarantee that you can repay the loan plus interest. This is why it may be in your best interest to only request what you need as you will need to be able to juggle loan repayments with any other existing outgoing payments including rent, mortgage payments or student loans. The higher the loan payments, the more financially stretched you will be in any given month.


Before applying for a loan, make sure you know exactly how much you need and why you ned the loan.

Seek a co-signer

If you are applying for a loan with a poor credit score, or no credit score, you may benefit from adding a co-signer to your loan application. Choosing a co-signer with a strong credit score and high income can increase your chances of being approved for a loan. The co-signer will need to be someone you trust and someone who trusts you to repay the loan. Both parties must fully understand the risks before entering into a co-signing agreement.

Find a lender to suit your needs

With so many lenders and loan products available, finding the right lender to suit your needs can be difficult. The majority of online lenders will be transparent about their minimum required credit score and income enabling you the hassle of applying for a loan that you know will not be accepted. Knowing this information up front will not only save time, but can prevent you from negatively impacting your credit score if you are rejected.

If you do meet the lender’s minimum qualifications, you could pre-qualify for financing if you want to see estimated loan rates and terms. This usually only triggers a soft credit pull rather than permanently impacting your credit score, though it is worth checking with the lender beforehand.

Doing your research could save you a great deal of time and money. Ideally, your best loan option will have a payment plan and costs that comfortably suit your budget.

What are the easiest loans to get approved for?

Payday loans, car title loans, pawn shop loans and personal installment loans are some of the easiest loans to get approved for. However, they are specifically designed for short-term use to help borrowers in a bind access fast funds; they are not a long-term solution.


Richard Allan

Richard Allan

Richard Allan is the founder of Capital Bean and a passionate writer about personal finance, budgeting and how to save money at home and work.

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