Friday, January 19th, 2018
Before you make the first move to apply for a personal loan, it’s handy to know that there are some small steps you can take to help improve your chances of having your loan application approved.
First, think about the reasons why you want to apply for finance in the first place…
There are many reasons that motivate people just like you to apply for personal loans – everything from buying a new car, planning your wedding, or helping finance some new household items at your home. Whatever reason is important to you, the truth is that, if it’s managed wisely, a personal loan can help you achieve your goals faster.
To help your loan get approved, try these helpful hints.
No matter what type of loan you apply for, there are set criteria that must be met. Although these change from lender to lender, there are some that are essential. You must be:
Helping meet short-term goals is positive – but not if it leaves you with long-term debt. Make sure you apply for the right amount and manage your budget to ensure you can meet the repayments.
Without the right income to support the required repayments on the amount you’re applying for, your loan won’t be approved. If you are unsure about available interest rates and how your repayments balance against your income, talk to an experienced personal loan specialist for clear advice.
Depending on your circumstances, it may be sensible to reduce the loan amount, or extend the loan term, to minimise the impact loan repayments will have on your cash flow.
If you can produce bank records that show a history of managing your money well, it is easier to convince a lender to approve your personal loan application.
It’s as simple as showing your transaction records. If your salary is paid into your account and your bills are paid on time, with some small savings put aside every now and then, it shows that you are responsible with money, which looks good to the financial institution considering your loan application.
Each time you pay your household bills on time, the state of your credit history is bolstered. Missed payments, defaults and debts only make you look like a bad choice to be offered credit from many lenders but the good news is that, with a professional finance broker who has a smorgasbord of lenders up their sleeve, even people with questionable credit ratings can often find a lender who will still help them out (although it may cost you more in higher interest rates).
It’s also important to remember that, if you make a number of applications for loans with different lenders, these do show up on your credit history and may affect your chance for approval of your personal loan application.
If you contribute regularly to your savings – even just a little bit consistently – it shows that you manage your money. Lenders will look favourably on applicants who have a history of making regular savings, as it shows that you may also be fine with making those monthly or fortnightly repayments your personal loan demands.
With a little planning, you can improve your credit rating and increase your chance of having a loan application accepted by the lender of your choice. Just remember – any type of credit must be taken seriously and managed well.
That short-term happiness could cause some long-term grief if you pay too much interest over too many years.
For more information about finding a personal loan that suits you – and improving your chances of having your loan application approved – talk to our team at Loans Actually today on 03 8805 1850