There are a number of things that you can do before applying for a loan that will improve your chances of having it approved – and of getting a good interest rate and terms. Each step by itself might seem like an insignificant detail, but put together, they can make quite a large difference to your application.

If one of these issues can’t be fixed, don’t let that put you off entirely – a loan broker can negotiate on your behalf to get a lender on board.

Bank statements

Gather statements for the last 90 days on all of your bank accounts. If you’re applying with a spouse or business partner, they’ll need to do the same. Ensure that you include all accounts, including business accounts, because the lender will be able to find any that you miss.

Employment history

Put together a list of your employers over the last 3 years. Employment stability is a big bonus – lenders tend to be wary if applicants have switched employers every few months. If you’ve recently changed employers and you have some wiggle room in the timing of the loan application, consider waiting a few months so your employment situation looks more stable.

Residence history

Get a list of addresses that you’ve lived at in the last three years, and mark them as rental, owned, or other. Lenders tend to prefer applicants who can show a stable residential situation.

Finance broker

Finding a loan broker before you start applying for loans can improve your chances at success, but also ensure that you can shop around without leaving footprints on your credit record.

Reduce your current debt

The more debt you currently have, the more regular repayments you’ll be committed to – and the less money that the lender will consider that you have available for paying off the potential loan. Minimise the number of credit cards you have – each credit limit will be considered to be part of your overall financial commitment. If you have multiple loans, consider consolidating them into one to reduce your monthly repayment requirements.

Pay bills on time

Dishonour and late fee payments are often clearly marked on your bank statement, alerting lenders that you might be a higher risk than otherwise anticipated. Keep your bill payments on time for at least three months to keep your record clean.

Transaction lists for debt payments

Keep supporting evidence of a debt that you’ve previously paid off – a transaction list is ideal. Often banks won’t provide finance brokers with good credit references, so this will help you to demonstrate a good credit history.

Avoid ATMs at clubs and pubs

When taking out cash for private spending, try to do it at an ATM on the street or at a bank – a pattern of transactions at clubs and pubs tends to look bad on a credit application.

No more payday loans

Avoid payday and after-pay loans like the plague. This includes options like Zip-pay, Afterpay, Wallet Wizard, and Nimble. While there’s nothing inherently wrong with them, more than 2 on your credit history implies that you have trouble with money management, and this affects your risk rating to the lender. Renting furniture is another option that raises red flags on a loan application.

Get your financial records up to date

Make sure that you have a list of all current assets, liabilities (debts and the like) and income. Check that you have no outstanding tax returns. If you own a business, check that your Business Activity Statements are up to date and that you have a current business plan and annual report.

Once your application is lodged…

Be patient! Loan application answers don’t always arrive overnight. Sometimes it can take a while, especially if your situation is more complicated than most. Your broker will be working to get you the best possible deal.


It is super easy to apply for a personal loan via our online application. Click the button below to get started. If you need help with the application, feel free to contact our office phone: 1300 360 450. or send us a message via our contact page.

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