If you’re about to move, finding a personal loan can be an ideal option while you wait to free up some cash or to smooth the high upfront costs over lower monthly payments.
A personal loan can be used for a range of purposes when you move, like the four-week rental bond, moving costs, rent in advance or even extra cash for new furniture.
Applying for a personal loan can be easy, but there are certain factors that could cause your application to be rejected. A finance provider must be satisfied that you can repay the loan before they can approve your application. Check the points below to ensure a hassle-free application process.
Unstable or insufficient income
Financial providers will look at your income to make sure you can repay your loan. If the repayments on your loan amount cannot be sustained on your income, there’s a chance your loan application will be rejected.
Do you meet the minimum income and employment requirements?
Since repayment will be entirely dependent on your income, financial providers have certain minimum income and employment requirements. RentBond, for example, requires that no more than 50% of your total income comes from government assistance for you to be eligible. Make sure you meet all the requirements before you apply for a personal loan.
In many cases, you will need to provide read-only access to your online banking account to allow your credit assessment to be processed. These systems are secure, encrypted systems endorsed by most financial institutions.
Know what you’re applying for
Try to find out as much information as you can about the loan you’re applying for before you apply. Look at the interest rates, administration charges and payment methods, for example.
You already have a similar loan, or too many loans
If you have an existing RentBond loan that has not been paid out, and you try to apply for RentBond again then your application will be rejected. If you have too many existing loans already this can also stop your application being approved. It is better to apply for a personal loan once you have paid out existing loans so you don’t have to face a waiting period after your application is rejected.
A poor credit record
If you’re applying for a loan that involves a credit check, your credit history will be one of the factors that determine whether you’re approved or not. If you’re concerned about whether you have a poor credit history, you can obtain a copy of your latest credit report before you apply.
Ask for help
Besides taking every opportunity to compare personal loan products, you should always check your eligibility first to avoid getting rejected. A good way to do this is by talking to the right people who can walk you through the loan requirements and recommend the product that is suitable for you. will have a higher chance of approval. If you have more questions about bond finance, or a personal loan, and want to chat to Rent.com.au’s Customer Service team, call us on 1300 736 810 today. This simple step can help ensure you’re fully prepared when you start your personal loan application.