While getting personal credit loans has become much easier (thanks to a variety of products to choose from), the choice to select one has become more confusing though! But if you know exactly what you are looking for, things can be much brighter. There are three basic factors that decide the right personal loan for you:
- The reason for which you are taking the loan
- Your repayment ability and capacity
- The total assets held by you
You can make things further easier for you if you know what to look for in personal credit loans. Here are a few factors that you must consider before you choose the right one for yourself.
Factors to consider when getting personal loans
Interest Rates
The rate of interest that is charged on your personal loan will make a significant difference to the overall debt. And whether the rate of interest is high or low will depend on whether you have chosen a secured or an unsecured personal loan.
Flexibility in repayment
You should check if your personal credit loan has a repayment flexibility that allows you to pay an additional lump-sum amount apart from the regular repayments. This way you can repay your loan ahead of time if your finances allow you to do so.
Fees and charges
The additional fees and charges on a personal loan can make a lot of difference to its overall cost just as is the case with the interest rates. So, you must ensure that the fees and charges of the loan are balanced with the interest rate to get you the most beneficial product.
A short-term loan that is comfortable
While a long-term loan might look comfortable to repay, the truth is that it is more expensive as the total interest paid at the end of the day is higher than that is paid in a short-term loan. So, avoid getting carried away by small monthly repayments and look for a short-term loan that is also comfortable to repay. While it might sound trivial but having a good customer service for the personal credit loans can make a lot of difference too. Access to online banking, flexibility to make additional repayments and having a 24x7 helpline are just a few of the ways to woo your customers.
Tips to get your personal loan approved
There is no thumb rule for getting your personal credit loan approved but there are a few tips that can certainly help you to improve the likelihood of their approval. These are:
- Irrespective of which personal loan you have applied for, ensure that you meet the required criteria. This means you should be 18 years of age, live in Australia, hold citizenship of New Zealand or Australia, permanent residency of Australia or the required visa, meet minimum requirements of income, should have a regular income and a good credit rating too.
- Apply the loan for the right amount. Your loan should be in proportion to your income i.e. your income should be enough to repay the loan.
- Try and maintain a good account history since that is directly going to affect your financial situation.
- Do everything that contributes to getting a good credit history like pay your bills timely etc. A good credit history makes it much smoother to get a desired personal credit loan.
- Besides having a good credit history, maintaining a good savings record is also a proof of the fact that you are financially responsible and can support the repayments of your loan
