Guidelines For Loan Eligibility in 2022
If you are trying to secure a loan and you are looking to see how eligible you are for your loan, we wanted to give you some guidelines to help you. When you look around online you will see that there are many loan eligibility calculators.
These can work very well but the problem is that they will normally run a soft credit check and you will have to give up your personal details to be able to get your eligibility score.
We thought we would try something different on this page and give you a short guide that will help you to work out your loan eligibility.
The way we have done this is by looking at some of the criteria that we recommend having before you apply for a loan. This will make sure that you are giving yourself the best chance to be accepted for a loan and it will also affect your rate.
Bear in mind that just getting a loan should not be your main aim. You have to think about what the rate will be, and of course the criteria that will affect the rate that you get will be your current financial situation.
This is hard to answer with a simple yes or no. The reason being is that different lenders have different criteria. You may find some lenders will be more open to lending you money even if you have bad credit. Other lenders will require a very good credit score for you to be able to get the money that you need.
As a rule, you will be able to get accepted for a short-term personal loan easier than you would for more money. This is because a short-term loan will normally be for less money and going up to the £5000 mark. When you start go above that amount you will normally need to have more thorough checks.
If you are looking for one of the easiest ways to find out whether you will be eligible for a short-term loan, we would highly recommend signing up for a free Experian account. You can read our article on how to get a credit report for free from this site.
The Experian service will give you a score that takes into account all of your finances. The score will give you an estimate on how likely you are to be able to receive the money that you need via a loan. You will also be able to see a general overview of your credit score.
If you do opt to go for the paid version, at the time of writing there is also a trial - this can be very handy because it will not only tell you what is bringing your credit score down, it will also give you an idea of how people see you from a lender’s perspective.
You will also be able to compare loans and credit cards using the same site and get a rough idea of what you will be accepted for.
We also wanted to give you some guidelines that will give you an idea of the financial situation you are best in before you apply for a loan.
NOTE: This is simply a guideline, you can have bad credit and be in debt and still receive a loan from some lenders.
In fact, if you are desperate to see whether you can get the loan and the money that you need - we highly recommend that you check out the application page here at MoneyPig, we will be able to give you a quick decision and we also compare across a variety of different lenders. This gives you the best chance of getting the money you need at a rate that is reasonable.
As an example of the guidelines that will see you with a good chance of being able to get the loan that you need.
- You have been a UK resident at least three years.
- You have a regular income ideally above £12,000 a year.
- You are over 21 years old.
- You have a good credit rating without any history of CCJ’s or bankruptcy.
- You have a UK based bank or building society account that can pay direct debits.
Make sure that you can make the repayments, these will always be clear on your loan and make sure that you take into account any rises in interest rate and if your repayments will change.
Of course, this is just an example that will give you a rough guideline to having a good credit rating. You will see that if you meet the criteria above the chances are that you will have a good credit rating. Of course, this does depend on outstanding loans and anything else that is going on with your financials currently.
You also do not necessarily have to be earning £12k a year, we just wanted to give you an overview of the very standard snapshot of someone that may be able to get a loan for the money that they need.
If you are eligible for a loan, the next step is obviously to be clear on how much you want to borrow and find yourself a lender. We would love to help here at MoneyPig, you can click the apply link and it will take you through to a very simple instant decision page.
Make sure that before you borrow any money you are clear on exactly how much you want to borrow, this is very important because it will affect your repayments.
You should also be very clear on how much you can afford to pay every month. It is important that you do not stretch yourself when you are looking to lend money and it is no good borrowing more than you can afford to repay because if you end up getting into financial difficulties it can affect your entire credit report for a long time.
We highly recommend only borrowing the money that you absolutely need!
We would also suggest having a goal for the money.
This means that you should only borrow the money that you need, and you should have a very clear idea as to what you are going to use the money for.
A personal short-term loan should not be viewed as a fast and easy way to get the money that you need when you have run out of your monthly wage for instance.
If you are after borrowing a very small amount of money to “top, you up” until you get paid then you could possibly look at a payday loan.
The main takeaway from the content above, try to make sure that you are in a fairly decent position financially before you think about borrowing more money. If you are financially in a low credit score position, then borrowing more money will not be the answer. In this case we highly recommend looking at a free charity that can help you with debt such as StepChange.
Stepchange will be able to advise you as an impartial charity and will give you more information about how to get out of your debt position.
If you are sure that you want to get a short-term personal loan, then we highly recommend that you know:
- Exactly how much you want to borrow?
- How long for?
- How much you can afford to repay?
- How long your repayments will last?
- Exactly what you will be using the money for.
As long as you cover the above, you should be in a good position to secure a short-term personal loan. The benefit of these type of loans is that you can get the money that you need quickly and easily.
You will also find that they are for a small amount of money than £5000 this also means that the rates will be higher than you would get from a loan that is issued from the bank.
The main benefit is that you are able to get the money that you need quickly and easily, in most cases you will be able to get the money into your account within a few days and some lenders even offer same day loans.
If you are interested to see how much you can borrow from MoneyPig, click here to check out the application page and you will be able to see how much you can borrow, exactly how much your repayments will be and get access to your loan quickly and easily.
Of course, you will also be able to find out whether you are eligible quickly and easily as well.
Thanks for reading and we hope this has provided you more information if you are searching to see whether you are eligible for a loan in 2022.