How To Apply For A Personal Loan

Applying for a personal loan doesn’t need to be a daunting experience. No matter whether you’re applying because you need some help with medical bills, a major dentist appointment, vet costs or something exciting like travel or a wedding, having funds at the right time can make a huge difference. There’s a few things you can do that make the process smoother and here at Rapid Loans, we can explain how the application process works and we’ve got some tips for improving your chances of getting the loan. 

Prepare your documentation

As with any form of application, you’ll need some paperwork as a part of the process. Some lenders will need you to visit in person, while others allow you to apply online. In terms of what you’ll need at a minimum for a chance of personal loan approval, make sure you’re aware of your credit score, have citizenship or permanent residency of Australia and address in Australia. You will also need to provide some accompanying documentation, which can all be provided online. These documents can include:

• Recent payslips (you may need up to 3 of these)
• Bank account statements to show your regular income and expenses
• Proof of vehicle registration for security
• Any other personal loans or liabilities you might have
• Proof of identification, this may come in the following forms or a combination of:
  • Passport
  • Birth Certificate
  • Marriage certificate
  • Medicare Card
  • Drivers License
  • Citizenship certificate

It’s a pretty comprehensive list, but the reason you’ll need these documents is to prove you are who you say you are, and have some form of income that means you’ll be able to make repayments. When it comes to documentation, it always helps to have more rather than less. If in doubt, call your prospective personal loan provider before you even start the process so that you can be efficient in your document gathering. Before applying, make sure you are confident with the loan particulars for the personal loan you are after, including:

• Type of loan
• Length of loan
• Repayment frequency

What can help my application for a personal loan?

Applying can feel a little nerve-wracking, especially when it’s for something really important. When you start the application process, the lender you’re applying with is mostly going to be focusing on your financial situation in order to figure out how able you are to pay the loan back. A longer loan term can help make the payment installments smaller each week, however you could end up paying more in the long run. When applying for a secured loan, you’ll also need to have some form of collateral or property, most often a car) to use as security for the loan. Also ensure the personal you are applying for isn’t too excessive for your current financial situation. A little bit of maths before you apply can go a long way! 

Here are a few tips that might help your application for a personal loan get approved:

Use a personal loan calculator to check that the proposed repayments for your loan are reasonable and that you can repay the loan within the proposed time period. If you feel your finances might be stretched with the repayments, your lending institution probably feels the same. 

• Check your credit history/score before even applying and then speak to who you are looking to get a personal loan from and explain your situation to them. They should be able to tell you relatively quickly if your credit history/score is in a reasonable range for your proposed loan amount. 
• Before applying for a personal loan, make sure you are up to date on your payments of all your other liabilities (credit cards, overdrafts, mortgages etc.). Depending on your situation, you might want to consider looking into debt consolidation to streamline your repayments. 

Along with showing you have a job and a steady form of income with your pay slips, it can be helpful to apply after you’ve passed the probation period. This shows you’ll be at your job for the longer haul and have job security, which in turn can increase the chances of your personal loan application being approved.

There are plenty of lenders out there beyond the bank that can help you get to where you’d like to be – whether that’s behind the wheel of a new car, going on the ultimate overseas holiday, or renovating your home. Here at Rapid, we’ve worked with thousands of Australians and are just a phone call or email away. Contact us today or start your application online! 

This article is intended as opinion only and not as a sole source of guidance. Responsible lending criteria applies. Australian Credit Licence Number 388847.