Deciding whether someone is suitable for a personal loan is an important consideration for both lender and borrower. To save you time and effort, it’s always best to check the eligibility requirements of a lender beforehand. Below, we explain how you can decide if a personal loan from a lender like Koyo Loans is right for you.
Eligibility for a personal loan
There are multiple factors that can affect your eligibility for a personal loan, and lenders look for different things. At Koyo Loans, for instance, you will only be approved for a personal loan if you:
- Are over the age of 21
- Are a resident of the UK for a period of at least six months
- Are not bankrupt
- Don’t have a bad credit rating or CCJs
- Own a mobile phone
- Receive regular income
- Are not self-employed
These are the minimum requirements you must meet before applying for a loan with Koyo, so if you tick all of the above boxes, your personal loan application is in with a shout. It’s also helpful for borrowers to use an eligibility calculator before getting stuck into a loan application. You can complete one in a matter of minutes, and it won’t impact your credit score, so it’s worth the additional effort.
Is there a way to improve my eligibility?
If you’re ineligible for a personal loan at this stage, you can take some steps to improve your status in the eyes of lenders. Of course, you can’t change your age, but there are some things that you can work on:
Improve your credit score
Lenders like Koyo Loans use Open Banking to determine your eligibility for a loan, but your credit score still plays a part. Other online lenders place more emphasis on your credit score, so improving it is an important step. Making your repayments on time, registering for the electoral roll, and limiting your credit applications can all boost your credit score to help a loan application.
When it comes to a loan application, patience is undoubtedly a virtue. You need to take small steps to build a strong financial foundation, which takes time. If you’re struggling to secure your dream job or you haven’t been approved for that raise you desperately wanted, be patient and keep working hard. In the long term, your finances will be in a much healthier position.
If you have any questions about applying for a loan or would like to check your eligibility for credit, you can get in touch with Koyo Loans today, and their team will be more than happy to offer you advice.