Nearly all specialised bad credit personal loan lenders have structured their online process to be as easy and quick as possible and that’s what they advertise! So, understandably, when you click their “apply now” button you almost expect the money to be ejected immediately from your computer screen given their emphasis on “fast cash loans” and “instant approvals”.
The reality is, however, that you do have to do some work to ensure you can get your loan approved. When applying for a personal loan in Australia there are many regulatory bodies governing the finance industry which Australians should be grateful for. Such things as privacy laws and conscionable lending practices that protect the borrower are consequently responsible for a number of documents that must be provided to the lender to ensure they are acting diligently. Enough of the red tape…..
What do you REALLY need to do to obtain a bad credit personal loan in Australia?
Here’s a starting point…
- You must be over 18 years of age
- You must be a permanent resident in Australia
- You must be in regular employment and earning more than $400 AUD per week
- You must have a bank account
- You cannot have entered bankruptcy in the past 12 months
- Your sole source of income is not the aged pension, Newstart/Youth Allowance, disability support pension or Austudy.
If you tick all of the above then you are in a position to be able to click that “apply now” button. What you now need to be prepared for is that after completing your information you may receive an instant “conditional” approval. As the name suggests, it is an approval BUT is subject to a number of conditions that you must complete BEFORE you can get the loan.
To abide by the necessary laws governing loans in Australia, the lender must collect proof of your identity, proof of your income, proof of your address and proof of your bank account.
Listed below are the most common documents you must provide;
- Drivers licence or passport, medicare card and an ATM card from a bank or credit union.
- Two recent months of bank statements showing your name and address as the account holder.
- A utility bill (gas, electricity or phone) or a rent receipt confirming your address.
These documents are the bare minimum so if you are in need of a fast personal loan you should organise these straight away to be either faxed or e-mailed. One thing you should also be aware of is that most lenders will make a call to your employer to confirm your length of employment and that you are a permanent or long-term employee. I have heard many people are not comfortable with their employer knowing they are applying for a loan. Rest assured that is all they will know, they certainly will not know how much you are borrowing nor anything else about your application.
So, as you can see, there is no “magic” way of getting a bad credit personal loan. The key is to ensure you fit the acceptability criteria first, then fully complete the lenders online application. The purpose of this information is to show that if you are already prepared with all the documents and understand the process the lenders must follow then it actually is easy and instant!