The reasons for getting a personal loan are varied and many. You might want to consolidate your debt, purchase a car, get married or even go on holiday. Whatever it is you’re trying to achieve, a personal loan is a good financing option if you don’t have savings or other financing options.
Following are some tips that you can use to improve the chances of getting your personal approved.
1. Ensure You Meet The Basic Criteria
Regardless of the reasons that you want the personal loan for, you will need to meet these minimum conditions.
- You must be at least 18 years of age
- You must reside in Australia
- You must meet the minimum income requirements
- You must be gainfully employed
- You must have Australian or New Zealand citizenship, or an eligible Australian visa, or have an Australian permanent residency.
- You should not be going through the bankruptcy process
- You should have a good credit rating
2. Apply For The Right Amount
Loan One’s personal loans are designed to help clients with a short-term need and not burden them with long-term debt. With this in mind, you can use our borrowing calculator to give you an idea of how much you can borrow based upon your income level and lifestyle. If your income is not sufficient enough to support the payment requirements, we will not approve your loan application.
That being said, you can opt to reduce the amount of money you are seeking and/or extend the loan terms, thereby reducing the impact that the loan repayment will have on your current cash flow.
3. Build A Stellar Account History
For customers who have an account with us, we have a pretty good idea of your financial situation. It is therefore important to manage your finances effectively, which shows us that you are able to handle a personal loan effectively. For instance, customers who receive their salaries in their accounts, pay their bills, and importantly put aside some personal savings, show that they know how to budget and manage their finances properly.
Additionally, it is important to never overdraw your accounts. If you avoid overdrawing your account, you will avoid fees and will create a good account history. This will demonstrate that you have the ability to manage the finances you have effectively.
4. Maintain A Stellar Credit Rating
Making electricity and phone bill payments on time can contribute to a good credit rating. On the other hand, having arrears, missed payments, and other debt collection activities recorded on your credit records by credit reporting bodies can negatively impact your rating.
It is important to keep in mind that making numerous applications for credit products and/or loans with numerous lenders can negatively influence your chances of getting a loan approval.
5. Develop A Good Savings Record
You can also demonstrate that you are a financially responsible individual by contributing regularly to your savings account. By setting aside a certain amount of money as your savings every week or every month, you show that you are likely to meet the regular loan repayments that are characteristic of personal loans.
Ready to apply?
When you are ready to apply for a loan, you can apply online. If you are a LoanOne customer, it should take you no more than 10 minutes. You simply apply and receive the funds same day in most cases. LoanOne is one of the fastest growing financial companies in Australia. We offer both personal and business loans with competitive rates for different industries. Our loans are fast, flexible and can be tailored to both your personal or business needs. Please click to apply now!