Approval
Best Ways to Improve Your Chances of Loan Approval
Practical steps you can take in the 30 to 90 days before applying to strengthen your application.
Loan approval is rarely a coin flip. Lenders look at a handful of signals, and most of them respond to deliberate action over a few weeks.
Pay down revolving balances
Credit utilization — the share of your credit limits you are using — is the second-largest factor in your FICO score. Getting overall utilization below 30%, and ideally under 10%, can lift your score noticeably within one statement cycle.
Don't open new accounts
Each hard inquiry shaves a few points and lowers the average age of your accounts. In the months before applying, hold steady.
Check your reports for errors
Pull free reports from all three bureaus at AnnualCreditReport.com. Dispute incorrect late payments, accounts that aren't yours, or balances that don't match your records.
Stabilize your income picture
Lenders prefer to see at least two years at the same job or in the same field. If you're freelance or self-employed, have two years of tax returns ready.
