Securing domestic helper loans can be challenging, especially if you’re unsure how to prepare for eligibility.
But, in this post, we’ll explore ways to increase your chances of getting your domestic helper loan approved.
Ways to Improve Your Chances of Getting Domestic Helper Loans
Usually, applying for domestic helper loans is time-consuming and takes effort. Notably, there are chances of getting denied the loan even when you qualify.
Therefore, here are some tips to increase your chances of getting a loan whenever you apply.
1. Know the Eligibility Requirements of Domestic Helper Loans
Knowing what awaits an eligibility check will give you a leg up in increasing such an application’s chances. Most always set the minimum requirements for such, which may differ from one lender to another.
A person who earns at least a minimum income usually qualifies for this, or someone with a good employment history or credit score may also qualify.
A call to customer service or a visit to their website will tell you the minimum eligibility requirements. You should prepare all necessary documents to avoid any hitch during the actual processing.
2. Improve Your Credit Score
The credit score is one of the most critical components of your loan approval. It gives an impression of your financial responsibility and credibility as a borrower to repay. The credit score estimate worked out by any financial body depends on the probability of the money loaned being returned in time.
Before applying, obtain a copy of your credit report and ensure that there are no mistakes. Low ratings can be upgraded by paying arrears and maintaining a low credit utilization ratio. A better credit score promises a higher acceptance probability and favorable terms.
3. Stable Job History and Income
Any lender would grant loans to borrowers who could show them that they have a steady income. This is because it will comfort the lender that they repay their loan on time, as they enjoy an income. Therefore, a stable employment history with your current employer will work in your favor upon application.
Therefore, show evidence of at least six months of steady income, augmented by recent payslips, employment contracts, or bank statements.
4. Prepare All Needed Documentation in Advance
Preparing all the necessary documents is the easiest way to expedite this process. Though requirements may vary from one lender to another, they mainly include proof of income, identification documents, proof of residence, and employment records.
A complete application with all the paperwork tells the lender you are serious and ready to meet all the borrowing obligations.
- Avoid Over-Applications
Getting too many loans in a very short period reduces your credit score, making the possibility of approval minimal. Each application involves a credit inquiry, which may lower your credit score slightly.
Research different types of lenders to find out who best fits your needs and submit applications to just a few. Mainly, prioritize those offering domestic helper loans whose approval criteria are not too strict.
6. You can always try applying with a cosigner or collateral.
You’re also better off considering applying with a cosigner or offering some collateral, especially if you have a bad credit history or low income.
A good credit cosigner boosts your credibility while collateral-saving or other assets assure the lender that the loan is secure.
Conclusion
Focusing on improving your financial profile and being well-organized is essential to successfully securing a domestic helper loan that fits your needs and offers favorable terms. Preparing will help instill confidence during the application process.
At Ihelp Lending Corp, we understand your financial needs and offer guidance on preparing and increasing your chances of getting your domestic helper approved.