Quick Answer: Improve your chances of getting approved for a loan by knowing your credit score, organizing financial documents, reducing existing debt, and working with a trusted local credit union. A loan can open doors and help you buy a car, renovate your home, or grow your business. But getting approved takes more than just filling out an application. Lenders want to see that you’re financially prepared and creditworthy. By learning what they look for and planning ahead, you can boost your approval odds and confidently move forward. Here are six practical loan approval tips to help you prepare:

1. Know Your Credit Score

Your credit score plays a major role in approval and interest rates. Request a free credit report and check for any errors before applying. A score of 680 or higher generally puts you in a stronger position.

Take a closer look at what impacts your credit score and how to improve it. Read our blog to learn more. And, with a Bonus Checking Plus account at CCCU, members get credit score simulator to see how different actions will impact their score in advance.

1. Pay Down Existing Debt 

Lowering your debt-to-income ratio shows lenders that you can manage additional payments. Paying off credit card balances or reducing existing loan amounts can improve your profile. 

Use these four smart strategies to start paying down your debt.

1. Organize Financial Documents

Have your pay stubs, tax returns, bank statements, and other key documents ready. Lenders want to see consistent income and a clear picture of your overall financial health.

1. Don’t Apply for Multiple Loans at Once

Each loan application may trigger a hard credit inquiry, which can temporarily reduce your score. Do your research in advance so you know the lender you’re looking to work with has the rates and terms to fit your needs; avoiding unnecessary credit pulls.

1. Understand Secured vs. Unsecured Loans
   Choosing between a secured or unsecured loan can significantly affect your approval chances. Secured loans (like auto or home loans) use collateral and often offer lower rates, while unsecured options (like personal loans) rely more on credit history. CCCU provides both, tailored to your needs.
2. Work With a Local Credit Union

Local credit unions like CCCU take a more personalized approach to lending. We go beyond credit scores to consider your full financial story, goals, and potential. You’re more than a number here.

Let CCCU Help You Reach Your Financial Goals!

Want help choosing the right loan? Contact us at 702-228-2228 or visit www.CCCULV.org to explore our different loan options. When you’re ready, our financial representatives are here to guide you through the process and help you take the next step toward your financial goals.