Tips to help get your personal loan approved
Whether you're after a holiday, a new vehicle or to pay for some more education, there are a few things you can do to help improve your likelihood of being approved for a personal loan.
People take out personal loans for all sorts of reasons – from planning a holiday to getting married or covering education fees. Whatever the reason, there are a few things you can do to help improve your likelihood of being approved for the funds you need.
Meet the loan criteria
All lenders will have a criteria that you must fit to take out a loan. To process your Heritage application as smoothly and as quickly as possible, we rely on you to provide all of the required information as soon as possible. This includes proof of income, statements of any existing loan and credit card accounts, and information regarding your other expenses. For more information on what is required to apply for a personal loan or car loan, download our Personal Loan Application Checklist.
Apply for the right amount
Remember a personal loan should be used as a short term measure to purchase something you want now. It’s not meant to follow you around costing you interest for the rest of your life. Use our personal loan borrowing power calculator to get an understanding on how much you might be able to afford. This will give you an idea on what you are more likely to have approved. If you’re unsure speak to one of our Lending Specialists online, in branch or call us on 13 14 22.
Build and maintain a good account history
Managing your personal account effectively is a good indicator that you may be ready to take on a personal loan. You can do this by having your salary paid into your savings account and by paying all of your bills from this account, plus putting some money aside as savings. It is important not to overdraw your account as not only will this incur fees, but it will also show poor management of your finances.
Maintain a good credit rating
Most lenders will do a credit file check as part of the loan application, so it’s important to maintain a good credit rating. Your credit history lists instances where you have applied for credit, the outcome of those applications and any credit default information registered by a third party. Credit bureaus such as Equifax can provide you with your credit history details and you can usually access a free credit check annually to check up on the health of your credit report. Learn more about what is in your credit report.
Prove you have a regular savings habit
Proving you are able to put money aside regularly is a good indicator that you’ll be able to repay a personal loan. Not only will it help give the lender confidence in your ability to repay the loan, but it will help you to understand how much you feel comfortable repaying each month. A high interest savings account or a savings account that rewards you with a bonus rate when you save may give you that extra incentive to get started. Learn more about our savings accounts online