- What makes me eligible for a loan?
- How can I improve my eligibility?
For both borrower and lender, assessing whether a person is eligible for a loan is one of the most important steps of the application process. To save you both time and false hope, it’s always best to double-check that you are eligible for a loan before you apply. To help you out, we’ve brought together some of the ways you can tell whether you’re eligible for a loan with Koyo, as well as some helpful tips on applying.
What makes me eligible for a loan?
Your eligibility for a loan is reliant on a variety of factors, depending on the lender you choose to use. Here at Koyo Loans, the following list is a must if you want your loan application to be a success. 24.9% APR Representative. To be successful, you must:
- Be over 21 years old
- Be a UK resident for at least six months
- Not be bankrupt
- Have no CCJs or history of bad credit
- Have a mobile phone
- Receive a regular income
- Not be self-employed
Unfortunately, if you don’t fit any of the above, you won’t be able to apply for a personal loan with us. Even so, if you tick all the boxes to apply, you still may face some roadblocks in the path to a successful application.
To give you some peace of mind, as well as save you time in the long run, we suggest using an eligibility calculator to determine how suitable you are for a personal loan. These calculators usually only take a few minutes to complete and can give you some really handy information about where you’re at financially. They won’t impact your credit score, so nothing to fear there either.
How can I improve my eligibility?
If you’ve discovered that you’re not eligible for a loan at this time, there are a variety of ways that you can lift your status up. Of course – eligibility points such as your age and citizenship can’t be fixed, but there are a couple of ways you can improve eligibility.
Raise your credit score
While we use Open banking data to fairly determine your eligibility for a loan here at Koyo Loans, credit score still has a part to play. Credit score can play an even bigger role with other online lenders too, so it’s crucial that you get it up to scratch. While this can take a bit of time, repaying on time, signing up for the electoral roll and limiting the number of credit applications you make are all quick wins. Eventually, with a slightly higher credit score, you may see your eligibility raise too.
Patience is a virtue in all things, but it is especially true when it comes to loan eligibility. It takes time to build up a strong financial foundation and you shouldn’t be worried about taking small steps first. If you haven’t got that raise at work you wanted or you’re struggling to find a suitable job, keep working hard and you’ll get on the right track. Remember – think in the long-term when it comes to your finances and you’ll be in a much better position in all areas.
If you’re still having trouble working out if you’re eligible for a loan or not, please don’t hesitate to contact us – we’re more than happy to help!
Koyo Loans provides fairer personal loans between £1,500-12,000 by and assessing your financial profile using Open Banking data (on top of your credit score). Interested? Use our loan calculator to work out your representative rate. Send an application here today. www.koyoloans.com. 24.9% APR Representative.