Personal loans are a great way to meet urgent cash shortfalls when you know how much you want to borrow. With a wide choice of payment frequencies, one has the option of repaying the loan on a weekly, bi-weekly or monthly basis. Your credit rating plays an important part when applying for a personal loan in Australia. There are a few things that you need to consider before applying for a personal loan. This article provides information on how to obtain a personal loan matches to your credit rating.
The first thing is to make sure that you meet the criteria before applying for the loan. No matter what type of loan you apply for, you should be:
. At least 18 years of age
. Live in Australia and be an Australian citizen
. Be employed and receive a regular income
. Meet the minimum income requirements set up by the lending agency
. Not be going through the process of bankruptcy
. Have a good credit rating.
Short Term Solution
A personal loan is designed to assist the borrower in the short term. In fact, it shouldn’t leave you with long-term debt. That is why you should plan to borrow the right amount depending on your lifestyle and income. The lender has a loan calculator where you can enter the income and repayment term and see how much you could borrow. If your income isn’t enough to support the repayment, the lender may not approve the loan. However, you can try to extend the repayment term in order to reduce the impact of the loan repayment on your current cash flow.
Managing your finances effectively is very important if you plan to apply for a personal loan. If you already have an account with the lender, they can gauge your current financial situation by taking a look at your account history. It is important that you don’t overdraw on your account. This is important to create a good account history and make you eligible for a personal loan. Contributing to your savings account on a regular basis will demonstrate to the lender that you are financially responsible. If you are in a position to show that you can save a set amount every month, you are actually showing the lender that you can easily manage your regular loan repayments.
Last but not least, maintaining a good credit rating is very important when you decide to apply for a personal loan. Paying your bills on time will contribute to a good credit rating over time. Delaying or missing bill or loan payments may be recorded by the credit reporting bodies and affect your overall credit rating in the long run. That is why you should maintain a good credit rating in order to get a lower interest rate when applying for a personal loan. When you get a personal loan matched to your credit rating, you can easily repay the loan in a timely manner.
If you’re looking for a flexible personal loan from a trusted non-bank lender look no further than LoanONE.
Visit our application page and see if you qualify today.
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