How to get fast approval on a quick online personal loan
OK you are looking for a personal loan because you need money sooner rather than later.
Whatever your pressing need is, you don’t want to wait for weeks for the funds.
The good news is that there’s an increasing number of providers that offer or specialise in fast loans.
And you don’t need to go with expensive payday lenders like Nimble if you want cash fast. There are plenty of personal loans providers with fast online applications and quick funding for approved applicants.
How do fast loans work?
There are several different types of fast loan on offer in Australia.
If you’re looking for a smaller amount – $5,000 or less – and you’re able to repay it fairly quickly, then a short–term loan might be ideal for you. Smaller loans are sometimes available to people with patchy credit records or who are in receipt of Centrelink benefits.
With smaller loans like these you can choose repayment terms ranging from 16 days to 12 months. Try to stay away from payday lender loans unless the amount is small, as the interest rates on these products can be very high indeed, up to 48 per cent per year.
The bigger banks and lenders also offer fast–turnaround personal loans, often for larger amounts, up to $55,000 or even $80,000. Credit union personal loans can go up to as much $100,000. CUA’s Unsecured Variable Personal Loan has a comparison rate of 11.89 per cent pa and a maximum loan amount of $60,000.
To apply successfully for these loans, you’ll need a reasonable credit record and a provable steady income.
How can you increase your chances of a rapid loan approval?
The best way to secure a rapid turnaround loan is to make sure that you fit all of the eligibility criteria. Lenders have very specific criteria, so head to a comparison site to sift through the products on offer and reject any that have criteria you can’t fulfil.
While lenders have slightly differing eligibility criteria, many of the requirements are broadly similar. These requirements often ask that you:
- Are aged 18 or over
- Are an Australian citizen or have permanent residence in Australia
- Are in steady employment (although some providers will consider beneficiaries or self–employed people
- Have 100 points of ID
- Earn a minimum amount of income every month
- Have a valid email, mobile phone, bank account and fixed address
- Have a reasonable to good credit rating, and
- Haven’t been made bankrupt recently.
What you need to provide for a successful fast loan application
You’ll need to provide at least the last three months’ worth of payslips to prove your income, as well as a recent utility bill and proof of ID (your passport or driver’s licence, for example). You’ll also need at least three months of bank statements so the lender can see how you manage your spending.
Tips for a successful loan application
Have a look at your credit record to make sure that there’s no negative listings on it. Very few providers offer no credit check loans and this is a good thing because a credit check protects you as much as the lender by preventing you from taking on too much debt.
Only apply to providers that you fit the criteria for, otherwise you’ll be rejected outright and you could hurt your credit rating.
Don’t apply for more than you can afford, because again, the almost–certain rejection will damage your rating. Just ask for the amount you need for your best chance of success.
Comparing your best fast personal loans
When you’re looking for a rapid personal loan there are a few things you need to consider before deciding which provider to apply with.
How much can you comfortably borrow?
Most personal loans don’t go over $80,000 and when you get into these higher amounts, you’re looking at longer application turnaround times as well as longer repayment terms. Short–term loans are available for smaller amounts only. Calculte how much you can borrow and afford to repay with the InfoChoice Personal Loan Calculator.
How long do you need to pay the loan back?
Generally, loans range from 12 months to five years, with larger loans needing a seven–year term. Short–term loans are usually less than 12 months. The shorter the term, the less interest you’ll pay, but you have to use a loan calculator to work out your optimum term and monthly amount. You could be paying the loan for a number of years, so it has to be comfortable.
Many lenders impose early repayment penalty fees, so if you think you’ll be able to clear the loan early, look to an alternative lender like RateSetter or SocietyOne, as these P2P providers don’t have such fees.
How quickly will you receive the funds?
Fast means different things to different people. You may need the money within an hour or two, or you might be OK to wait for two days or more. The turnaround time is an important factor in your choice.
How quickly will the loan be funded? Since you’re looking for a fast loan, this is an important aspect to compare. While some lenders give you access to funds within an hour, most will take 24 or 48 hours.
How much will the loan cost?
There’s the interest loan to take into account, of course, as well as any establishment fees and ongoing fees or costs. These additional fees affect the overall cost of the loan and lenders have their own fee schedules, so make sure you look at the comparison rates when you’re doing your research.
A word or two of caution
Don’t be pulled in by an attractive interest rate or low set–up fees, as these may be hiding high fees or a higher–than–necessary interest rate.
If you find that you can pay off the remaining balance of your loan earlier than scheduled, make sure you do the maths as an early repayment penalty could cancel out the savings you make on the interest.
Compare personal loans from Australia’s banks, credit unions and other lenders at InfoChoice.
The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.