Outlook Money
Switching jobs is a significant move in a person’s career. Typically, each job change results in a substantial raise, a promotion, or sometimes both. Nonetheless, it can also affect the eligibility of personal loans.
Major factors that lenders keep in mind while lending loans include employment stability and employment history. Lending companies may not find the participant eligible if he/she has frequently changed jobs.
Other factors that lenders keep in mind are steady income and type of employment. Consistency in income is very important for debt repayment. There should be a source of income for the borrower that will ensure that he/she will be able to meet monthly payment obligations.
Key effects include income verification issues and probation period. Switching jobs may result in delaying the income verification slips, which, in turn, could affect the possibility of getting a personal loan.
One should record income proof, maintain a high credit score and a low debt-to-income ratio.