When you need a loan, your credit score, financial stability and assets may all come into play. A few strategies are available to make it easier to get accepted for a loan when you need access to funds.
Keep your credit score as high as possible. This will help greatly when you are applying for a loan, as lenders routinely check your credit history. Pay off debts and pay all your bills early or on time to keep your credit score high. Consumers are entitled to one free credit history report each year through the website AnnualCreditReport.com (see Resources), so take advantage of this to make sure there are no issues with your credit.
If you need the loan for a business, prepare a solid business plan. Show the lender why the loan is important for your business and how it will lead to more profits. Lenders who see that their customers have carefully thought out what they will do with their loan may be more willing to approve one.
Apply for the smallest possible loan. Applying for a smaller loan will increase your chances of being accepted because you will have less to pay off. A bank or credit union may decide that because you are seeking a smaller loan, you are a better risk for paying it back.
Offer the lending company collateral if the need arises. If you have a home, vehicle, boat or other large item, you may be able to use it to get approved for a loan. If you own a business, you may also be able to use it as collateral.
Find a co-signer for your loan. This is especially helpful for those with subpar credit. A co-signer is responsible for the payments if you cannot make them.
Apply for an unsecured loan--one that does not require collateral or good credit. Examples of these are payday loans, installment loans and car title loans. These loans generally require only a source of steady income, a checking account and, in the car title business, a paid-off car title in one's name. These loans are short-term solutions. They carry high finance charges, so use caution when applying for unsecured loans.