Personal Loans are increasingly popular in solving people’s financial needs, as you do not require any collateral as security. However, it must be noted that the Personal Loan application and approval process can be more difficult than you may expect. There’s no perfect formula to guarantee your Personal Loan will be approved, but there are ways to speed up the process.
Lending establishments like banks and Personal Loan firms in Australia are concerned about only one thing – that you are in a position to repay the loan on time. To complete the application process, there are strict criteria that must be met, including sharing your personal details. Providing incorrect information can slow down the speed of your approval or even result in a loan rejection.
To help you speed up the process, the following five tips may help you get a quick approval from most leading finance lenders:
Tip #1 Improve Your Credit Score
The higher your credit score is, the easier and faster your loan application will be approved. This is how all fast cash loans work. You may also get better loan terms with a lower interest rate because the lender has confidence that you will pay back your loan on time. Start clearing up your debts and make sure to pay all the bills on time so that your credit report does not get a negative mark.
Tip #2 Rebalance Your Debts
If you are having a hard time paying down your debts, one option may be to sell some assets you no longer require. This will allow you to help clear your debts which will in turn increase your credit score.
Tip #3 Get a Side Job
In order to make sure that your debt-to-income ratio is not high, consider getting a second job. Lenders require you to write down your annual income in the loan application and provide proof. Since there’s no restriction on adding income from your side job to your annual income, you will be able to show the lender that you earn a good amount and are capable to pay off the loan.
Tip #4 Do Not Close Your Credit Card Accounts
If you don’t pay an annual fee for your unused credit card, then there’s no need to close it. Your lender takes into account the length of time the credit card has been used. If the history is clean, it increases the chances of your loan application being approved.
Tip #5 Don’t Apply with Multiple Banks or Lenders
Our final piece of advice is to ensure you do not send your loan application to multiple banks or lenders. If your application gets denied by some of the lending establishments, your credit score will take a hit. Talk to at least three lenders, find out the interest rate and benefits they are offering, compare the fees and then make your decision.