Borrowing money can often be the key to your brand new dream car, awesome overseas adventure or kicking that debt to the curb. So once you’ve decided you want to turn the lock and get a personal loan, you might be wondering “what do I do now?”
Apply for the loan of course!
We are here to navigate you through the personal loans application process, with this quick checklist that runs you through what you’ll need, in order to open the personal loan door.
One of the must haves when it comes to applying for short term loans, is proof of your earnings like pay slips, tax returns and group certificates, as this is one of the ways the financial lender decides your level of loan borrowing risk and whether to approve you for the personal loan.
Fran Sidoti from Savings Guide says when applying for a personal loan, you will need to show you have had at least three months continuous employment and work history for the past two years, including business addresses and phone numbers. “Your last two tax returns could also be quite helpful,” Sidoti recommends.
Keep in mind; if you receive the majority of your income from Centrelink, Money Smart says the personal loan repayments must not exceed 20% of your income.
If you have debt accruing on some plastic you’re not alone, as the average credit card debt currently sits at around $4,200 in Australia, according to figures from Money Smart. Be honest with the provider, so they can properly assess your situation and match you with the right loan and borrowing amount for your situation.
If you’re a homeowner the personal loan provider may also want to know what your monthly home loan repayments are. As well as, any other investments you may have, such as shares.
You will also generally need to provide a range of references, including your current employer’s contact details, and the details of your previous employers if you have switched jobs in the last 3 years. Plus, the contact details of your landlord, as well as property rental statements.
Money Smart says the personal loan lender may ask you for the previous 90 days of statements for the bank account/s your income is deposited into.
“This information will help the credit provider work out if you will be able to meet the repayments of the loan you are applying for without financial hardship.”
Consider that the short-term loans lender may also want to know what your weekly spending is like and the value of your household contents.
And of course, the provider will want to know that you’re in fact who you say you are. So you’ll need to provide identification like your current driver’s licence or passport number and expiry date. If you don’t have these two forms of ID, often loans providers will accept two other forms of ID like a birth certificate, citizen certificate or bank cards.
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