1. Can I afford a new monthly payment?
  2. Do I have a car or motorbike that has no debt against it, to offer as security to help strengthen my application?
  3. Am I confident I will be employed for the whole term of the loan?
  4.  Have I got all the documents I need to provide? (Identification, employment and bank statements.)
  5. Do I really need the loan?

Thinking of applying for a personal loan? There are numerous personal loan lenders out there, but that doesn’t mean you’ll be approved. If you really want to get a loan, here are a few questions you should ask yourself before you consider applying.

1. Can you really afford the loan’s repayments?

Very few of us have much savings, if any. Most Australians live within their pay cycles, and then reach for the credit card when the expenses are particularly high. You need to look at your cash flow and feel absolutely confident that you can actually afford the loan’s repayments. You need to be certain that you’ll be able to meet the repayment on time; otherwise it will mean you will be in default and your credit record will be negatively affected.

budgeting personal loans

2. Can you provide security for the loan?

Generally, for small loans under $3,000, you’re not required to provide any form of security. Loans that are this size are called “unsecured” which means you’re not required to provide an asset as a guarantee you’ll repay the loan. Secured loans are generally over $3,000 and require you to provide details of an asset, such as a car or motorbike. When you provide security, it strengthens your application because the lender sees this as your commitment to repaying the loan.

3. Is your employment stable?

When you take out a loan, it’s important you meet your repayments on time. If your income is not reliable, and you start missing repayments, this can negatively impact your credit rating. You’ll be considered to have bad credit, which seriously affects your ability to borrow. At Fair Go Finance we can lend to certain levels of bad credit, so if you are in this situation you’re welcome to contact us to discuss your situation.

4. Do you really need the loan?

We’re all guilty of wanting everything now. Make sure you give enough thought to what it is you want the loan for, and how essential it really is. If you are looking at doing a debt consolidation loan, which will help you clear many small debts and possibly give you smaller monthly payments, then that makes good sense. If you’re looking to buy the latest iphone even though your current one is fine, perhaps give it more consideration.

5. Do you have all the right documents?

Most lenders ask for the same things. You need to prove your identity, prove your income and employer, have a bank account and prove where you live. Basically the lender wants to make sure you are genuine and will be around for the term of the loan. Make sure you have all of these, and it will make it much easier to get a loan. Don’t expect a lender to be able to “take your word” that you are who you are, just provide the correct documentation as quickly as possible so your loan can be assessed and hopefully be approved.

At Fair Go Finance we want to help people go forward with personal loans they really need. If you can answer our questions positively, please apply with us or give us a call to discuss any questions you have about applying for a personal loan.

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Are you eligible to apply?


It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:
For more information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.

Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
If you are on government benefits, ask if you can receive an advance from Centrelink.

The Australian Government’s MoneySmart Website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.