There is a simple way to get a 10% increase in an approved loan without having to qualify for it. Just ask for an increase in the approval and ask for an amount that equals a 10% increase.
Many loan programs allow for a 10% increase on a newly approved loan if either the credit representative or the customer simply asks for it. In many of these cases, credit is not pulled again, there is no additional review and a reason for the increase is not asked for.
Very few consumers are aware of this and do not take advantage of this. Such an increase is not advertised by lenders because they wish to approve what the customer asked for or the maximum they can qualify the customer for. They merely do this in the event a customer wants more, 10% is considered small enough to be within the risk parameters of the credit decision.
As an example, a customer applies for $50,000 and is approved. If the customer indicates they wish for more funding, they typically can get an additional $5,000 simply by asking for an increase. An automatic 10% increase is the limit, lenders will not stretch to a 20% increase without a further review or more information, possibly financial information being asked for. For example, if a customer is approved for $50,000 and insists on $75,000, then further financial information may be asked for to consider the request, such as a Personal Financial Statement or Business or Personal returns. If the applicant can show just a small amount of other sources of income, that may satisfy an increase request. In some instances, providing the most recent 3 months business checking account statements is enough.
These are some of the ways in which a borrower can increase the amount of an approval.