What Are Factors A Borrower Should Consider For The Best Forbrukslån?

Updated: May 11, 2022
by Jess Adeola

Submitting an application for a personal loan is something you should avoid unless you know you have a relatively good shot at getting approval. That's because lenders will do a hard credit pull when you do the application process. 

Getting approval for the beste lån is not as easy as it might sound, especially if your credit is less than favorable. While collateral is not an issue for a personal loan since these are unsecured, meaning no property is required to secure the funds, lenders will require a higher interest rate to cover their risk.


So, someone with less than favorable credit gets a bing in the interest rate and then another bing for not needing collateral, making the loan high cost if they get approval at all. 

Lenders vary in their criteria to determine the interest rate and approval. Still, the basic variables are relatively comparable across the board, with the primary factor, of course, being credit history and rating. All lenders want to ensure the borrower can repay the funds first and foremost.

They can determine this by looking at how bills were paid in the past, if there's sufficient income to do so currently, plus if this income is stable. Let's look at the factors a borrower needs to focus their efforts on to get the best personal loan possible.

What Are Factors A Borrower Needs To Consider To Get The Best Personal Loan?

If you hope to get a personal loan, the ideal scenario is finding a lender that will prequalify you. 

You will learn the terms and conditions and the interest rate with only a soft credit pull by doing so. You can make a decision whether to go through with the application or work on your profile a little bit further to try to get a better outlook.

Without the benefit of pre-qualification, you won't know where you stand in the loan process unless you put in the applications with varied lenders, and that's something you want to avoid for your credit's sake. 

In an effort to prepare your profile for the best possible personal loan, there are key factors that the lenders will be focusing on to ensure that you're capable of repaying the loan. Some of the most important to concentrate your efforts include

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Among the most essential factors the lender looks at is the credit history, which will show your relationship with previous and existing creditors. It will note when you late pay specific bills. Lenders will consider these marks against you as a loan applicant.

If you paid previous lenders off early or were at least on time and consistent, it makes you appear credible and a reasonable risk for the loan provider you're applying to. 

That's why the suggestion is there to pay credit card balances as the bills come due, the full balance each month, instead of carrying any over to the following month with the accrual of interest and keep the balance low. Credit cards are ideal for building, improving, and maintaining the best credit history.


It's vital to have steady employment showing that you have been employed steadily with an employer without bouncing around from one to the next repeatedly or being out of work for substantial gaps with no source of income. 

That implies there could be a future period where you go without money, and then how would you repay your monthly installments.

Income is probably the most crucial factor to consider when attempting to get the best personal loan. Aside from steadily working and having a stable employer, the lender likes to see a decent income; the higher it is, the greater the chance for approval considering the amount you request.

The loan provider will also factor in what amount you have remaining after taking care of other financial obligations.


We touched on this already somewhat but to go into a bit more detail, the lending institution doesn't always put a lot of significance into employment except, as mentioned, that you do have stable, secure, and steady work without gaps in your history. 

For those loan providers who do place employment as a requirement, the likelihood is that you will need to work on a full-time basis instead of merely having a part-time career. 

It could also imply that if you are self-employed, you would need to take advantage of different sorts of loan opportunities designated explicitly for that group of individuals. Loan products for groups outside the traditional employment landscape are minimal in comparison. 

There are also a unique set of options provided for the unemployed sector and anyone getting government benefits. Regardless of how you receive income in a given month, everyone needs to show proof they can pay their monthly installment.

Age of applicant

The indication is that most lenders will consider the applicant's age to determine the loan's lifespan. Providers indicate that the younger a borrower is, the more likely they will qualify for a loan. 

Loan providers generally put caps on loans before people apply for loans, and generally, according to lenders, "the younger you are, the better."

Source of income

Another factor that lenders indicate they consider when deciding when to grant approval for a loan is the source of your income. The loan providers note that those who earn a salary from a "good company with a solid reputation" will look more "appealing" to the lending institution.

According to loan providers, government employees and those who work with prestigious universities are "top priorities" since these are exceptionally secure positions. In addition, anyone with a professional role, including physicians, lawyers, architects, and on, will be held in "high regard" also. 

Anyone who is self-employed will need to sow further documentation to back their income, including tax returns and bank statements.

A valued customer

valued customer

Lenders appreciate their valued client base. When you have existing accounts that you carry with the financial institution where you're applying for a loan, the provider considers that when processing the paperwork. 

Plus, if you have good standing with your accounts and have paid previous loans back with a good history, that will add credibility to your application.

Suppose you have some time before you need the loan. It might be a good idea to develop a relationship with a financial institution before applying for a loan, especially if you don't belong or have accounts with any provider. 

It would be wise to establish checking and savings accounts, let those build up, show withdrawals and deposits steadily, no overdrafts for a substantial period of time, and then make the loan application after the bank sees a bit of credibility with your accounts and can deem you a valuable customer.

Final thought

Obtaining the best possible personal loan is not the easiest feat. The easiest aspect is you can get the product for virtually any reason because there are some prohibited uses. The requirements to obtain a loan can be stringent. Some of that, if not most, is because these are unsecured loans where the provider takes the brunt of the risk upon themselves if a borrower were to default. 

Because that risk falls to them, the provider needs to secure the funds, with the only resource available to do so being the interest rate and potential fees. For this reason, some clients will pay a substantially higher rate based on their level of risk as determined by the factors discussed here, particularly income and credit. 

These help a loan provider assess whether a borrower will be able to pay back the funds or has a greater likelihood of delays or missed payments. The greater your risk, the more proof you'll need to show your credibility.

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About the author 

Jess Adeola

Jess is a working mother of two small children. Writer, graphic designer and a trainee accountant, who's looking to set up a design institution for children under 13 in the UK.

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