There can be many reasons why you might want to take out a personal loan. Perhaps you’dlike to buy a car, consolidate your debt, improve your home, go on a holiday, or you are getting married.
Whatever the reason, a personal loan can be a great way to help you achieve your dreams sooner.
Beloware a few tips you can do to improve your likelihood of getting the funds you need approved.
1. Make sure you meet the criteria
No matter which of ourpersonal loansyou’re applying for, you need to:
- Be at least 18 years old
- Hold Australian or New Zealand citizenship, or Australian permanent residency, or an eligible visa (call us on 13 1431 to find out more)
- Live in Australia
- Meet minimum income requirements
- Be employed or receive regular income
- Have a good credit rating
- Not be going through the process of bankruptcy
2. Apply for the right amount
Personal loans are meant to help you out in the short term, not leave you with long-term debt. Ourborrowing calculatorcan give you an idea of how much you might be able to borrow given your income and lifestyle. If your income isn’t enough to support the required repayments on the amount you’re applying for, we won’t be able to approve your loan.
If things aren’t lining up, think about reducing the loan amount or extending the loan term to reduce the impact of the loan repayments on your current cash flow. If you would like to talk to someone about your options you can visitany branchor call us on 13 1431.
3. Build a good account history
If you’ve already got an account with us, we’ll have a pretty good indication of your financial situation. Managing your finances effectively will help show that you’re ready to take on a personal loan.
If your salary is paid into your account and you’re paying your bills and putting some savings aside, it’s a good demonstration that youknow how to budgetand manage your money.
It’s also important not to overdraw your account. Not only will that help you avoid fees, it will also create a good account history as it shows you’re able to manage your existing finances effectively.
4. Maintain a good credit rating
Ensuring you pay things like your phone and electricity bills on time can contribute to having a good credit rating. If you have missed payments, arrears or other debt collection activities recorded by a credit reporting body this may impact yourcredit rating.
You can check your credit rating and the accuracy of information held on you by credit reporting bodies through organisations such as Equifax,Dun & Bradstreet(Illion) orCredit Savvy1.
Also, bear in mind making numerous applications for loans and/or credit products with a number of lenders may also affect your chances of loan approval.
5. Show a good savings record
Another way to demonstrate you’re financially responsible is to contribute regularly to your savings. If you show you can save a set amount of money every week or month, you’re also demonstrating that you are likely to be able to manage regular loan repayments.
Ready to apply?
If you’re ready, you canapply for a loan onlineat any time. If you’re already a NetBank customer it takes 10 minutes to apply through NetBank and you may receive funding the same day2.
FAQs
Tip: A stable income, high credit score and low DTI ratio increase the odds you'll be approved for a personal loan. However, some personal loan lenders will consider other criteria, such as your educational background or employment history, when reviewing your application.
How can I make sure I get approved for a personal loan? ›
Tip: A stable income, high credit score and low DTI ratio increase the odds you'll be approved for a personal loan. However, some personal loan lenders will consider other criteria, such as your educational background or employment history, when reviewing your application.
How long do loans take to get approved by CommBank? ›
Applying online for a CommBank loan is easy, and you'll get a response from us within 60 seconds. You may even get access to funds on the same day you apply*.
How hard is it to get a $30,000 personal loan? ›
For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate. A high enough income: Part of the lender's evaluation of your loan application includes determining whether you can afford the payments.
Who is most likely to get approved for a personal loan? ›
Because most lenders require a minimum credit score of at least 670 for traditional personal loans, this means no-credit-check loans are geared to borrowers with scores below that range. Despite the fact that these loans are easy to get approved for, bad credit loans can be punishing due to their incredibly high costs.
Why am I getting denied for every loan? ›
Credit score, income and debt-to-income ratio are the main factors lenders consider when reviewing applications. Paying down debts, increasing your income, applying with a co-signer or co-borrower and looking for lenders that specialize in loans within your credit band could increase your approval odds.
Is it hard to get a personal loan? ›
Personal loans can have more strict requirements than other types of funding options. If you have poor credit or a short financial history, fewer lenders will be available to you.
Can you buy a car with a personal loan? ›
Personal loans offer high borrowing limits of up to $100,000 for eligible borrowers and can be used for nearly any purpose, even buying a car. However, higher interest rates and tighter credit requirements may mean a personal loan isn't your best option to buy a car.
What is the best reason to say when applying for a loan? ›
There are many reasons why people apply for personal loans. These include: debt consolidation, medical and dental expenses, IVF treatment, home repairs/improvements, weddings, large purchases (like appliances or furniture), car repairs, and more.
How likely is it to get approved for a personal loan? ›
A good or excellent credit score gives you the best chance of getting a personal loan with attractive terms. If your credit score isn't up to par, try improving it or finding a co-signer to help boost your approval odds. The amount you borrow and your debt-to-income ratio also play a role in the lender's decision.
Your credit score: Evaluating your 'creditworthiness' to see how much debt you have and how you've handled debt and repayments in the past. Your income: How much you earn will determine how much credit you can take on. Do you make enough money to repay your loan and still have enough left for other expenses?
Why won t anyone approve me for a personal loan? ›
Credit score, income and debt-to-income ratio are the main factors lenders consider when reviewing applications. Paying down debts, increasing your income, applying with a co-signer or co-borrower and looking for lenders that specialize in loans within your credit band could increase your approval odds.
