Need a personal loan ? 10 Ways To Increase Your Chances Of Approval


There are a few steps you can take to get on the right books and get that much-needed loan.

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If you’re looking for a personal loan, you’ve probably already decided exactly where that extra money will go. Maybe you want to consolidate your debt, buy a new car, or make improvements to your home. In short, you have hope.

This is why getting rejected can be so disappointing. A rejection throws an important key in the works and your plans suddenly come to a halt. But there are ways to reduce the risk of this happening.

1. Check the basic borrowing criteria

It doesn’t matter where you borrow money, be it a traditional bank, digital lender, or buy now provider, pay later, they will all have basic terms that you will need to fill. These are generally called loan criteria.

Not meeting the loan criteria is the fastest way to get turned down for a personal loan. Check all loan criteria carefully before you even apply.

The criteria may vary from one lender to another. Some may set a minimum annual income, others only lend to Australian citizens and permanent residents. All will ask you to be over 18 and to have sufficient ID.

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2. Be patient if you are on work probation

If you’re still on a probationary period at work, it’s probably best to delay your loan application for a while. This is because the majority of lenders will want proof of a stable and constant income.

NOW Finance digital lender offers loans to people in various business situations. For example, you may be eligible for a loan if you are a permanent full-time or part-time employee, casual employee for at least 6 months, or self-employed for at least 24 months. You can even supplement your regular income with a portion of your Centrelink income, increasing the amount of money you can borrow.

However, he will not lend to anyone who is on work probation. If this applies to you, it’s worth keeping your head down at work and waiting until you’re hired on a permanent basis. (Good luck!)

An employee and an employer sign contracts together.

3. Get a free credit report

Lenders use your credit report to determine how you have handled your debt in the past and whether you appear to be a responsible borrower.

It will display information including the type of accounts, loans or debts you have, your payment history, your current credit limits, and your current balances.

It will also show if you have any pending bankruptcies (within 7 years), discharged bankruptcies (usually up to 3 years) and if you have any debts that have been turned over to a collection agency.

You can get a free credit score and credit report from Equifax, Experian, or Illion. Some lenders will use multiple credit bureaus, so it’s worth asking your credit score from all three so you can get a full picture of what your credit report might look like for a lender.

?? Did you know? Requesting a credit report will not affect your credit score.

4. Find a guarantor

Sometimes lenders will allow you to add a guarantor to your loan. A guarantor is someone who promises (and is legally obligated) to repay a loan if you are unable to do so.

Usually the guarantors are the parents of the borrower, but this does not have to be so. It can be any friend, relative or partner, as long as they are over 18, accepted by the lender, and fully understand the commitment they are making.

A father helps his adult son manage his finances.

5. Clean your bank statements

In addition to your credit rating, lenders will often review your recent bank statements to get a better idea of ​​your spending habits and to see if there are any red flags. For example, they can look for overdraft fees or frequent transactions for the game.

Tony Dougherty, head of credit operations at NOW Finance, says bank statements are becoming an important part of credit scoring in the industry.

“Clean bank statements go a long way towards hassle-free approval,” he told Finder. “How and where you spend your money can impact loan approval. “

According to Dougherty, even small amounts of payday loans and now and later purchase transactions can play a role in credit assessment. Lenders will also review bank statements to determine your overall cost of living and whether there is room to pay off a loan.

A couple look at bank statements together.

6. Check your chances of approval

Since applying for a personal loan can impact your credit score, it’s worth finding the providers most likely to approve you before you send everything out.

You can do this by downloading the Finder app and filling out your credit profile. The app then calculates your chances of approval by comparing your profile to credit applications accepted by other Finder members.

In some cases, if we don’t have enough information to model your chances of approval for a lender, we’ll work with that lender to do the calculation.

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7. Figure out what you can really afford

Before you apply for a loan, calculate your regular monthly income and expenses so you can clearly see how much you have left at the end of the month.

If you apply for too large a loan, your monthly payments may end up being higher than you could afford, and a lender will quickly turn down the request.

“It just makes good sense to make sure an applicant can pay off a loan without feeling overwhelmed,” said credit expert Dougherty. “As a corporate citizen, we never want to put a client in a difficult situation,” he said.

Remember, it is better to apply for a smaller loan that you can repay comfortably, rather than being burdened with debt that is too much to handle. In short, only borrow what you need and never take a larger loan just because you can.

A young woman looks at her laptop with concentration.

8. Provide security

If you own valuable assets, such as a house, car, or boat, you may be able to use them as security for your loan.

This gives lenders the assurance that you are agreeing to repay your loan. It could also give you access to a better interest rate, which makes your loan cheaper in the long run.

For example, NOW Finance unsecured personal loans have a minimum interest rate and a comparison rate of 5.95% * pa, for borrowers with excellent credit. However, if you can access a secured personal loan, you can take advantage of a much lower interest rate and a comparison rate of just 4.45% pa *

?? Hot tip: To see what rate you could pay for a personal loan through NOW Finance, visit Get my rate.

9. Be honest

While individual lenders will have their own specific requirements, Dougherty said there’s one thing that’s important to every lender that will also ensure potential borrowers don’t end up with debt they can’t pay off. Honesty.

“If the applicant is unsure of their current situation, it is best that they contact the potential lender, ask questions and be honest about their situation,” he told Finder. “This information will help establish if the lender can help.”

A woman is talking on the phone while looking at her laptop.

10. Talk to a broker

If you’ve come to the end of this article and are concerned that you may not be the ideal candidate for a personal loan, it may be worth talking to a broker.

Brokers can advise you on lenders who might take you as a client, given your specific terms, and can potentially find you a better interest rate. While not all brokers charge a fee, some do, and it’s important to be aware of this before getting started. You just need to ask them clearly what their fee structure is so as not to have any unpleasant surprises.

A couple talks to a financial advisor in their home.

Compare personal loans from NOW Finance


NOW Finance Unsecured personal loan without fees

From 5.95% (fixed)


$ 5,000

18 months to 7 years

No set-up fees

$ 0

You will receive a fixed rate between 5.95% pa and 17.95% pa depending on your risk profile
Borrow from $ 5,000 to $ 7,999 with loan terms ranging from 18 months to 3 years or borrow from $ 8,000 to $ 50,000 with loan terms ranging from 18 months to 7 years.

⭐ Finder exclusivity: Apply and pay for a NOW Finance Debt Consolidation Loan through Finder by September 30, 2021 for the chance to earn $ 2,000 off your debt. The T & Cs apply.

NOW Finance secured personal loan

From 4.45% (fixed)


$ 15,000

18 months to 7 years

$ 0

$ 0

You will receive an interest rate of 4.45% pa to 15.45% pa
Borrow up to $ 100,000 for terms ranging from 18 months to 7 years. You can use this loan to buy a car, motorbike, boat, camper van or caravan.

Compare other personal loan providers here


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