Personal Loans are the most difficult of loans to obtain simply because they are generally unsecured. This means that the lender will lend you money without any guarantees against property. For example a credit card is a form of unsecured loan.
Credit cards are easier to obtain generally because the lender adds very high fees and charges to the facility to ensure they don’t lose their money. A personal loan is generally at a much lower interest rate.
If you have applied for a personal loan or even a number of personal loans recently there are a number of main reasons why you have not been successful:
- You don’t earn sufficient income to cover repayments
- You have outstanding unpaid defaults on your credit file
- You have too many recent paid defaults on your credit file
- You have made too many applications for personal loans in the last 6-12 months
- You do not have a job – people on certain Centrelink payments are not eligible for personal loans.
Unless you have an exceptional credit file, that is, no defaults, no excess loan inquiries it is recommended you speak to a loans advisor to ascertain your ability to get a loan. By getting the right advice you will save damaging your credit file further and can be directed into a loan option that best suites your situation.
For more information on how to get a copy of your free credit file and credit score go to: www.easymoneynow.com.au