When applying for a personal loan, lenders will look at a number of different factors before giving their approval. Things like your credit score, current income, and job history will all play a role, and may even impact the rates you receive. Knowing what is expected can help you prepare for the process, which will improve your chance of ultimately being approved for a loan.

What Banks Look for When You Apply for Personal Loans

Income & Assets

When it comes to income, most lenders prefer an applicant with higher earnings. This is because you’re more likely to pay back a loan if you can easily satisfy your other debt obligations. Assets can also be beneficial, as these will offer security to lenders if you lose your job and no longer have a steady income. Preferred assets are those kept in a savings account or stocks, as these can easily be converted to cash.

Job History

Steady employment usually equates to steady income. Accordingly, lenders want to see a solid work history free of unexplained gaps or long periods of unemployment. While an inconsistent work history doesn’t mean you’ll be denied a loan, it does mean that you may be subject to higher interest rates.

Credit Report

Along with your credit score, lenders will also look over your full credit report when deciding on whether to approve you for a loan. Information contained within a credit report typically includes liens and judgments against you, past bankruptcies, debts you still owe, and if you’ve recently applied for credit or loans elsewhere. More red flags on your credit score will generally give lenders pause, as they may view you as a high-risk applicant.

When applying for a personal loan in San Marcos, TX, Master Finance aims to provide their customers the very best in loan products and service. Flexible terms and conditions allow you to pay back your loan as quickly as you see fit, or you can opt for a longer term to ensure you’re able to keep up financially. These affordable loans have made this loan company a trusted financial resource for locals, whether they need emergency funding for car repairs or to cover medical expenses. Call (512) 392-6102 to speak with a loan agent about your specific needs. You can also visit them online to access some frequently asked questions about the application process.