Do you know which factors determine your personal loan amount? It’s worth knowing this because it allows you to see which ways you can strengthen your financial profile and qualify for credit with less difficulty.
There are many lending institutions in America and around the world, and they may lend individuals as much as $10,000, depending on qualifications. Your personal loan amount comes from several factors:
The FICO score has a range of 300 to 850. Most credit scores fall between 610 and 750, with an average of about 710. Many lenders consider a score of 700 or above a “good score.”
This is also known as your credit ratio. It refers to how much of your income goes toward debt service (more on this below).
Lenders reserve the right to approve/deny any loan based on its purpose. You may be able to borrow more for emergency purposes than recreational or elective desires.
As we said, some individuals obtain loans as high as $10,000. This is something you should only try with certain objectives though. There are good and bad reasons to get a large loan.
Lenders have many strategies for improving loan eligibility and thereby increasing your personal loan amount. Much of it revolves around credit scores. Start with these three tips for building your credit score:
This piece of advice is the most fundamental but not always the easiest. It requires not only discipline but the wherewithal. By practicing good budgeting, earning a consistent income, paying bills regularly, and living within your means, you position yourself for better loan eligibility. That has a big impact on your credit.
It helps to consolidate your credit balances and shoot for no higher than 30%. If you can’t achieve this, you may want to revamp your payment effort or obtain higher credit limits to pull the ratio lower.
It might be smarter to hold on to the older established credit card than to obtain a new one. If you close it, you’ll lose your credit history, including its good aspects. You can keep an old card, not use it, and benefit from its computational effect on your credit ratio.
Some of this information might seem foreign or hard to comprehend, but we always recommend sticking to the basics of good budgeting and paying bills promptly. Lending Bear can fill in the gap for you by helping you access other forms of credit that don’t depend on stringent lending rules.
Of course, if you struggle with bad credit or no credit, we encourage you to seek our assistance. We offer many ways to get instant cash through payday loans, pawn loans, installment loans, title loans, and more. There is always a way to get necessary credit, without too much risk, and in a timely fashion.
We’re the pros at doing this quickly, effectively, and with the most friendly customer service. Don’t forget that Lending Bear is a state-licensed lender in Alabama, Florida, Georgia, Tennesse and Louisiana. We also like to point out our A+ rating from the Better Business Bureau.
If you need a loan quickly and have had trouble with traditional lenders, contact us to find out how you might still qualify for an instant loan with Lending Bear.