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Can I Maximize my Loan Approval Chances? If you want to maximize your chances of loan approval, there are certain steps you can take before applying that may make your application more successful.


Key Facts:

  • Some loans have more relaxed eligibility requirements or won’t require a  hard credit check. 
  • To a lender, higher credit scores indicate a borrower is more likely to repay the loan on time 
  • Failing to repay the loan affects the borrower’s credit report and negatively impacts their score.
  • There could be errors on your credit report that make you look like more of a risk. Request a free copy of your credit report before applying for a loan.
  • Asking for more money than you need can harm your chances of loan approval
  • Some loans are easier to get approval for. Check out all options.


Boost your credit score

Most traditional loan companies will look at a borrower’s credit score to determine their creditworthiness. Higher scores indicate that a borrower uses credit responsibly, meeting payments on time. Incidences such as missed or late payments will appear on a borrower’s credit report and negatively impact their score. Similarly, if you have been rejected for a loan or credit in the past, this will appear on your credit history and may make lenders disinclined to lend money. Boost your chances of loan approval.

That being said, regardless of whether you have a perfect credit score or not, there are many different ways that you can work to build your credit before applying for a loan: 

  • Look out for credit report errors 

Mistakes on your credit report have the ability to make or break your loan application. These errors are fairly common and are usually quick and easy to fix. They may include things such as wrong account information, closed accounts shown to still be active, and incorrect credit limits. Request a free copy of your report. If you notice an error on your report, you should contact the credit reporting company to get these fixed as soon as possible.

  • Manage your money 

When applying for a loan, your monthly outgoings will come under scrutiny more than ever before. Therefore, in the months leading up to your loan application, you should try to be as frugal as possible with your spending. Try and only spend money on what is necessary as careless and frivolous spending may work against you in a loan application. If you are able to keep your finances in check, and your monthly income is more than your outgoing expenses, it shows lenders that you are comfortably able to afford monthly loan repayments.

  • Request a higher credit limit 

If your income has increased since you first opened your credit card account, or you have a history of consistent and punctual payments, you may be able to request a higher credit card limit. This could be a way of effectively demonstrating to lenders that you can manage your finances. However, it also has the potential to hurt your credit score rather than help it, so you should always check with your credit card company first. You may want to read: How does a credit card work?

  • Find a co-signer

Putting in a joint application for a loan may benefit those with poor credit scores. Adding a co-signer who has good credit and a high income may increase your chances of being approved for the loan. However, this may work to the disadvantage of the co-signer in the long term as they may not want to be financially associated with someone with poor credit. Before entering this type of agreement, it is worth checking that both parties are happy with the risks.


Only ask for the minimum necessary amount

If you are contemplating taking out a loan, you should decide beforehand what you want the loan to be used for and exactly how much you need to take out. Taking out more than you need may have implications for the long-term affordability of the loan and may have a negative impact in the future.

Being honest with lenders about how much you need and the purpose of the loan may make them more likely to loan you the money. If you are asking for more money than you need, they may question this and could possibly view you as a financial risk. When deciding whether or not the loan is affordable, you will need to consider the principal amount (the original amount borrowed) as well as the fees and interest rates. You will need to pay this all back so you need to ensure that you are definitely able to make your monthly loan repayments alongside your other outgoing payments. The more you borrow, the more you will need to pay back per month.


The right lender for you

The world of loans can be overwhelming with so many different options available on the market. Working with a broker, like Funding Zest,  might be a good idea if you want to save time and energy on finding the right lender to suit your financial needs. Brokers work with a range of lenders and can do the legwork of researching different loan products and lenders that are most suitable for you.

If you choose to do the research yourself, lenders have to be transparent about their eligibility requirements as well as their interest rates, making it straightforward to compare and contrast the different available options. Knowing this information up front can save you from putting in an application with an unsuitable lender and will decrease your chances of loan rejection.

In some cases, you can pre-qualify with a lender; if you meet eligibility requirements, you can compare estimated loan rates and terms. Rather than a hard credit check that marks your credit report, these searches are typically soft checks which allows you to explore your options without impacting your credit score.

Funding Zest works hard to pair you with a lender who is most likely to approve your loan and give the most favorable terms for you.


Are some loans easier to be approved for? 

Some loans require less strict eligibility restrictions or do not require the need for a hard credit check. These include loans such as pawnshop loans, payday loans, car title loans, and personal installment loans. For that reason, they are often easier to obtain and are suitable even for those with poor credit. However, they are also known for being some of the most expensive loans on the market meaning that they are not always a sensible choice. Learn the difference between secured and unsecured loans.


Funding Zest will consider your no credit check loan application, but a credit check is automatically carried out for all borrowers.

Payday loan amounts with Funding Zest range from $100 to $35,000.

You can set up a repayment schedule that pays off your loan in 1 month all the way up to 60 months in equal monthly installments to stretch out your repayments. You can always repay early if you would like to. If you do, you can save on interest.

Yes! Try it for FREE.  We never charge a fee for pairing you with the best lender for your financial situation. We do receive a commission from your lender once they’ve successfully delivered your loan to you.

Funding Zest will consider all credit histories. If you are declined by one partner because of your credit score, there are others that we work with that are willing to look at loans for people with bad credit. Sometimes loans are offered that don’t require a credit check and instead they use collateral against the loan, such as a car (title loan) or property to help you borrow money. But our lending partners will almost always carry out a credit check.

Funding Zest is a broker meaning that we pair you with the best lenders for your financial needs.

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