The Importance of Income in Loan Approval
Your annual income is one of the main factors banks analyze when approving a personal loan. The higher your verified income, the better your chances of getting lower interest rates and higher credit limits.
Institutions like Capital One, Citibank and Discover use algorithms that cross-reference your income with your payment history to determine loan terms.
The general rule is that maximum income commitment to loan payments should be 30-35%. This ensures you can make payments without compromising essential expenses.