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4 Things to Do Before Sending Your Personal Loan Application

Updated: May 6, 2021

Notable expenses and decisions such as fixing up a part of the house or getting an area of it repaired require money, which can be challenging to have on hand right away. A personal loan allows you to borrow money to cover those expenses until you can repay back the lender.

However, do keep in mind that personal loan applications usually entail an evaluation and inquiry to screen if a loan officer will approve it or not. Continue reading to find out what steps you need to take to ensure the highest chances of your loan application going through.

Avoid Taking More Debt

One red flag for any loan officer or lender is the amount of debt a person is dealing with. Too much debt signifies that a borrower won’t pay back the loan that they’re taking out. If you already have a questionable history of debt, that may be used as leverage to decline your application.

Avoid taking on any more debt before making and sending your personal loan application, just so your recent history makes a good impression. Any emergencies or sudden expenses may also hinder your application, but weigh whether it’s more ideal to take out that personal loan at that time as a way out.

Create a Budget Plan

A personal loan can help you cover costs to achieve many things, but it’s better to be realistic about the amount you’re going to get and remind yourself that you will have to pay this back eventually. This is a commitment that will be billed for you to pay and see for the next few months.

It’s better to plan out a budget early on before you make your personal loan application. This will help you strategize where you’re going to use the loan’s every dollar and what your payment plan will be like. Remember to take your current income into account and whether you have the ability to sustain and take care of those bills.

Assess Your Credit Score

A high credit score and good credit history can give you better terms and lower interest rates when you apply for a personal loan. If you aren’t aware of your credit score, be sure to check it before sending in your application. Try your best to increase it so you can get the optimal interest rate.

Be sure to check your credit report, too, just to make sure there aren’t any mistakes that are reflecting in your credit score. Any errors should be relayed to the credit bureau.

Prepare Your Documents

Having your documents prepared in advance will make the loan application process a whole lot smoother. Most lenders will need your driver’s license, social security card, passport, birth certificate, tax returns, recent bank statements, and a utility bill.

Some lenders may require more documentation, so just ask what they need beforehand. Give your contact number if they need any other requirements so that you can pass them as soon as possible to avoid any delay.


Preparation is vital to avoid any hindrances when sending in your loan application while getting the highest chances of getting approval. Speak with a loan consultant and officer that can help you with your plan.

Shelby Finance Company is the best personal loan company in Memphis, TN, that offers installment loans and personal service. Get in touch with us today!

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