Personal Loans are one of the most popular forms of finance in Australia. One of the main reasons is that the money can be used for quite a few different purposes, rather than being restricted to a single type of purchase only.
So, you’ve decided you want to apply for a Personal Loan. Well, what are some ways or things you can do to vastly improve your chances of instant loan approval?
Let’s take a look at some top tips for easy online loan approval.
#1 – Can You Meet the Lender’s Criteria For Personal Loans?
Every lender will have a set of criteria a borrower must meet in order for you to be eligible to apply for a Personal Loan. This list can vary slightly from lender to lender, so never assume the criteria is always exactly the same. It’s best to check it first.
Some general points most lenders will require you to meet include:
- Being an Australian citizen or permanent resident
- Over the age of 18
- Have a steady source of income
- Be able to prove your identity
- And more…
If you don’t meet all of the criteria, you’ll have to work at it until you do, or you won’t be able to get a personal loan.
#2 – Don’t Apply For More Money Than You Need
Another way to help you get approved is to only apply for the amount of money you need. Let’s say you want to borrow $5,000 to landscape your backyard. Don’t ask for $10K when you really only need half the amount.
The more you want to borrow, the more the lender is going to consider the risks of lending money to you, and question your ability to repay the loan.
#3 – Can You Show You Have the Means To Repay the Loan?
If you don’t have a job and your income is totally reliant on a Centrelink payment, chances are extremely slim that you’ll get approved for a Personal Loan, even a small one.
When applying for a Personal Loan, you have a much better chance of your application being approved if you can prove you have a steady income. For wage earners, this will usually entail supplying the lender with 2 or more recent payslips. For sole traders and business owners, financial details regarding your business income, supplied either by your accountant or yourself.
#4 – What’s Your Credit History Like?
A good credit score and a positive credit history will greatly enhance your chances of being approved for a Personal Loan. Your credit score is a reflection of how consistent you are at repaying debts, paying bills, and also lets the lender know how many debts you currently have.
A poor credit score can hurt your chances of getting a loan, although it won’t necessarily make it impossible.
#5 – A Good Record Of Savings Will Help
Can you demonstrate to the lender that you have a good savings record? This doesn’t just mean money in the bank, but being able to show a bank statement with consistent and regular savings being added.
This highlights that you have the ability to manage your money well and that you’re sensible when it comes to your finances. A lender will also be more confident you can repay a loan if you show a positive savings record.
#6 – Shop Around For the Right Lender
Finding a lender that best suits your needs could prove to be the difference between success and failure when it comes to getting a Personal Loan.
Use comparison websites and take full advantage of the internet to find a lender that can help you. Don’t apply with too many lenders at once, as this can potentially have a negative impact on your credit score.
Too many loan application rejections can also impact your ability to land finance, so choose your lender carefully first.
Talk To Cashify About Personal Loans
Cashify offers Personal Loans for many different purposes. You can apply for a standard Personal Loan from $500 or a more premium Personal+Plus Loan up to $50K. Our application process is fast and streamlined. If you want to learn more about our Personal Loans and how we can help you, just get in touch today.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.