Factors that Affect an Online Loan Application Approval

Factors that Affect an Online Loan Application Approval

Factors that Affect an Online Loan Application Approval

If you think your credit score is what is standing between your online loan application and you getting approved, think again. It matters, but not as much as you think.

If you need a small dollar short-term loan or just a quick loan to get you out of a bind, then your credit score likely won’t matter too much. There are many short-term lenders that do not run a traditional credit check, so it is possible to obtain a loan from them.

But there are other factors that come into play when you are applying for a loan online. If you only need a quick loan, then here are a few factors that can help, regardless of your credit score.

Factors that Affect a Loan Application Approval

It’s good news for people who are worried about their credit score and afraid to apply for an online loan.

Proof of Income

When you apply for an online loan, you need to show proof of income. This could be a paycheck stub, your last tax return, or your latest bank statements. Any type of income is fine, even if it comes from a pension, disability payment, or even an alimony payment.


How much debt you have can also be a factor when you fill out an online loan application. Your debt-to-income ratio looks at how much you make and how much you owe in debt.

If you are making the payments and have a history of doing so, you will likely be fine. But if your income is low or uneven and you have deep debt, then they will be reluctant to approve you for another loan.

Employment History

How long have you had your current job? If you have been there for a year or two, then that is a good sign. If you have had several jobs in the last few years, that can make a creditor hesitant.

If you work for yourself, through an agency, or seasonally, it may make it harder for you to get approved for a loan. Lenders will look for consistency in your income over the last 3 to 6 months so they feel comfortable extending you credit.

Loan Application History

If you have been applying for multiple loans from different companies, and you were approved for one or two of them already, it will be difficult to obtain anything else.

Most places that offer short-term loans will not even consider your application if you have similar loans out that are current. Some states will ban multiple loans at the same time, so check the rules in your state before applying.


If you have collateral, like a car, bike or jewelry that you can use to obtain a loan, that is usually the easiest way to get fast cash. Title or pawn loans are very popular for generating quick cash for your bill or emergency.

For smaller amounts, the lender may not be worried about collateral, but if you have several strikes against you already, then it might be tough to find a loan without it.

Online Loan Applications

Some places you go will be more lenient when it comes to approving your online loan application. A company like Lending Bear, offers loans in their stores, as well as online, so you will have several options available for financing. Bad credit doesn’t have to be a barrier to obtaining a loan, as long as you can prove reliable and steady income, or you can provide collateral. Contact us today.