When it comes to Personal Loans, Australia has many options. In fact, Personal Loans are one of the most common forms of finance in this country. Every day, thousands of Aussies apply for a Personal Loan through one of the finance providers; such as banks, building societies or private lenders. The reason Personal Loans are so popular is that the money can be used for all manner of different purposes, from holidays to weddings, or just to have some cash on hand for when you need it.
If you want the best chance of being approved for a standard or instant Personal Loan, then here are some hot tips.
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#1 – Check Your Credit History and Credit Score First
These days, everyone can gain access to their credit history and credit score, via sites such as Equifax, Illion, Experion and quite a few others. The reason you’ll want to check your credit history and score is to determine your chances of being approved for a Personal Loan before you even apply.
If your credit score is not up to par, your chances of getting a Personal Loan and instant cash are slim. You might also discover there is an unpaid bill listed in your credit history that you’ll need to rectify in order to improve your credit score.
With some lenders, your credit score can also help determine the interest rate on your loan. The better your credit score, the better your rate.
If your credit score is satisfactory, go ahead and apply for a Personal Loan.
#2 – Make Sure You Meet the Lender’s Criteria
Each lender will have criteria that applicants need to satisfy before you can apply for a Personal Loan with them. These criteria can vary with each lender, so don’t just assume that because your bank has a certain list of requirements, that a private lender you approach is going to be exactly the same. Check the criteria of each lender individually.
Once you’ve cross-checked the list and satisfy the lender’s conditions, then you can confidently fill out a Personal Loan application and know it will be processed.
#3 – How Much Do You Want To Borrow and Does It Fit Within the Lender’s Limit’s
Lenders all have minimum and maximum lending limits. As a general rule, the figures will fall between a minimum of $5000 up to a maximum of $50,000. This can vary, but those limits are the most common with banks and other lenders. If the amount of money you wish to borrow is above or below those limits, you might want to find an alternative source of funding. If it’s within the range, then you’re good to go to apply for a personal loan or Personal Plus loan.
#4 – Do You Have a Good Savings Record?
You’ll have a much better chance of being approved for a Personal Loan if you can demonstrate a good savings history. This will definitely champion your cause if you’re applying for a loan with the bank where your savings account is kept. Having said that, a steady history of being able to save money will go in your favour no matter who you approach for a Personal Loan.
If you don’t really have any savings, it may be a good idea to start putting money away each week for at least a few months, before you apply for your Personal Loan.
#5 – Have All of Your Paperwork In Order
There’s no point in filling out a Personal Loan application with any Aussie lender unless you have all the documentation and paperwork that they require to accompany the application. If you don’t, all that will happen is the processing of your application will be delayed until you can provide the necessary documents.
Typically, the least you’ll need is to be able to prove your identity by providing a copy of your driver’s licence, passport or birth certificate. If you’re employed, most likely you’ll be asked to show proof of income and, if self-employed, financial details from your accountant.
Sometimes a bank or other lender will request additional documents before they make a decision on your application. It might be in the form of requesting the previous financial year’s tax return details or possibly even recent bank statements.
Generally speaking, getting approved for a Personal Loan isn’t all that hard, so long as you meet the criteria, have a decent credit record, can demonstrate you can repay the loan and be able to prove your identity.