With most of us staying inside our homes, it may be safe to say that this pandemic is sparing no one when it comes to financial impact.
Whether you are struggling with making your mortgage payments or are looking to replacing your home roof, you can apply for a personal loan with ease.
There have been some changes in the lending environment during this time that you should be aware of.
In this post, we will take a brief look at things you should consider that may increase your chances of getting qualified for a personal loan during the Covid-19 pandemic.Compare Personal Loans
It’s no secret that building a great credit score takes years. Your credit score is also unarguably the most important factor in determining your loan rates.
While this pandemic has been financially hard for most people, it is still our responsibility to practice safe credit practices. If we allow our credit scores to suffer during these times, the consequences will be continued to felt for years down the road.
In fact, most banks have already raised their credit standards in terms of personal loans during Covid-19.
Thus, be sure to spend some time tracking your expenses and as we here at SimpleDirect like to say, practice safe credit!
Before the pandemic, most lenders required that the borrower's debts should not be more than 40-50% of his/her monthly income. With most of the lenders having had tightened up their approval requirements, it has now become more essential to calculate your debt-to-income ratio than ever.
The ratio helps the lenders understand the percentage of one’s income committed to the other creditors every month.
Some lenders might ask you about the exact amount you are able to save after all the expenses have been taken care of each month.
They will even review your bank account statement to better understand how much extra cash you manage to save each month.
Hence, it is advisable to keep track of your expenses, note down how much you are able to save up each month, and show your lender that you'll easily be able to pay them back. This will increase your chances to get a personal loan during Covid-19.
It is no secret that the loan offers you’ll come across currently will be entirely different from the ones you used to come across before the pandemic.
It is a different world we live in right now.
Most lenders have reduced the amount one can borrow. On the other hand, some have increased their fees and minimum APR.
Hence, it's advisable to compare different offers and finding ones that best suit you before locking down on one option
At SimpleDirect Pro, we provide our clients with the best customized personal loan offers based on your situation and needs.Compare Personal Loans
To conclude, we are now in living in a drastically different world than we were at the beginning of this year. As the pandemic continues to add some degree to financial pressure on most of us, there are a few things we can do in order to better prepare us for any personal loans we may need soon.
We also want to say that a personal loan may not be your best option right now. At the end of the day, these are added financial commitments and you may not be in a situation where this is sustainable. If you want to just check out your potential rates without impacting your credit score, visit Simple Direct!