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 to help you prepare your application. 

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. Having your documents ready before you apply can help make the application process quicker and smoother. 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 assess whether you can comfortably meet the repayment obligations. A longer loan term may reduce individual repayment amounts, although you may pay more interest over the life of the loan. 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. Before applying, consider how much you need to borrow and whether the repayments fit within your budget. A little bit of maths before you apply can go a long way! 

Here are a few ways to prepare before applying

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. Checking your credit history before you apply can help you understand what information a lender may consider during their assessment. 
• 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.

If you’re considering a personal loan, take the time to compare lenders, understand the loan terms and choose an option that suits your circumstances. If you’d like to learn more about Rapid Loans’ personal loan products, you can contact our team or apply online.

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 general information only and does not constitute financial or credit advice. It does not take into account your personal objectives, financial situation or needs. When you apply for a loan with Rapid Loans, your application will be assessed against our credit eligibility criteria. All applications are subject to approval. Terms and conditions, fees and charges apply.

Australian Credit Licence Number 388847.