Are you thinking of acquiring a financial product or service? What do you think about checking out some tips beforehand to help you through the process and increase your approval power in the market? As most applications are rejected by banks, it's worth reading this content to the end.

We've put together this content to guide you through some basic steps to increase your chances of getting approved for a loan.

Each of them will play a fundamental role in this journey. So you must follow them all if you don't want to reduce your chances of getting a loan. The last stage is really the most important and the one that will have the greatest power to influence the bank in your favour.

Ready to learn about the steps that will give your approval power a boost? Check it out!

How to increase your approval power in the financial market?

Take a close look at all the tips below:

Step 01 - have pantries in your name:

Did you know that having accounts in your name / CPF can increase your chances of being accepted on the market?

Financial institutions and companies need to know that you are responsible and pay your debts on time.

You can therefore transfer some accounts into your name (e.g. water and electricity) or open a digital account and make transactions. This will gradually build up your credit information and allow banks to access your relevant information.

Step - 02: Try NOT to delay paying your bills:

Another step that will greatly increase your power is to pay your debts on time and avoid interest.

Both banks and financial institutions value customers who honour their payments. Therefore, you must show that you are a good payer and adopt new habits, such as:

• Register your accounts for automatic debit;
• Mark the due date on your calendar;
• Use the help of a personal finance app or a spreadsheet;
• Programme the discount on the slips in your account;
• Pay your bills on the same day.

Step 03 - Don't use your overdraft:

Cheques are a financial solution that should be used very carefully so as not to complicate your life with the interest that accrues.

Our recommendation is to avoid using them as much as possible, as this could indicate a lack of financial control.

What's more, in some cases it can be more interesting to take out a loan than an overdraft. The interest rates will be lower and the chances of you not being able to pay off the debt later will also be lower.

Stage 04 - be more careful with loans and financing:

While a loan can be a more advantageous alternative to an overdraft, it and financing are two lines of credit that should be used with great responsibility.

One of the secrets to increasing your borrowing power is to switch your loan or mortgage instalments to automatic debts, advance instalments and manage these debts with good financial planning.

Step 05 - Always update your income:

For example, when you request a credit card or loan, the bank considers your current income.

With that said, you'll need to update your proof of salary. If you're self-employed, ask your bank manager which document is acceptable to prove your income.

Step 06 - make changes to your account:

Transferring money via your bank account will make your bank even more aware of your credit history, which will also increase your chances of being approved.

To show how your finances are doing, follow the tips we've prepared for you:

• Use the bank's services;
• Use a debit card, but prefer a credit card if you already have one;
• Make bank transfers;
• Choose to have money paid into your account.

Step 07 - pay off the debts via your account:

To make your day-to-day life easier and increase your approval power, how about paying your debts at the bank and avoiding the queues at the lottery offices?

As well as improving your relationship with the bank, you'll no longer have to resolve outstanding financial problems in cash.

Separate your rent, telephone, electricity, water and gas bills and start paying them from your bank account. Take your time! If you don't have an account yet, we'll recommend the perfect option in the last step.

Step 08 - if you have debts in your name, try to negotiate them:

In our penultimate stage, we recommend trying to negotiate all outstanding debts and registering them with credit protection agencies such as Boa Vista (SPC) and Serasa.

Otherwise, it will be very difficult to access credit and increase your chances of being approved. So talk to the debtor and close the deal according to the payment terms.

Step 09 - open a digital account:

As you may have noticed, having a digital account could be just what you need to increase your approval power. This is the first step towards establishing a relationship with your bank, a good credit history and your financial transactions.

To help you choose a digital account, we suggest you read the post below:

Digi+ Visa credit card - Digital account & card with no annual fee!