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Some things to consider when applying for a personal loan

A personal loan may help you gain greater control over your budget or work towards the things you want in your life – whether you’re looking to consolidate your debts, renovate your home or finally buy that car you’ve been eyeing off.

Before you apply, make sure you do your research, work out how much you can afford to borrow, and what you can afford to repay. From there, you can assess your options and figure out what type of loan you’re after.

Once you have an idea of your budget and goals, you may wish to consider the tips we’ve set out below to assist you when applying.  

1. First, make sure you’re eligible

It’s important to make sure that you meet the eligibility criteria of the loan that you’re applying for. 

The eligibility criteria for an ANZ Personal Loan requires the applicant to:

  • be at least 18 years old;
  • earn a minimum of $15,000 per annum; and
  • be an Australian citizen, permanent resident, or have a valid visa.

You can read up on the eligibility criteria and documentation we’ll need for each type of loan here

2. Find the right amount to apply for

Once you’ve determined that you’re eligible to apply for an ANZ Personal Loan, the next step is to gather some information to help work out what repayments are realistic for you, so that you don’t enter into a loan you can’t afford to pay back.

At ANZ, the information we ask an applicant includes details about their:

  • income, including any income from investments;
  • assets;
  • repayment commitments (e.g. if they already have a personal loan or a credit card); and
  • expenses (e.g. the money spent on electricity, food and lifestyle expenses).

We ask for this information so that we can verify a borrower’s financial circumstances and assess their ability to repay an ANZ Personal Loan.

Next, you’ll need to run the numbers and work out exactly how much money you’re going to need, how much you can borrow and how much you can afford to repay. Doing this will help you determine whether you’re applying for a loan that’s manageable given your personal needs and circumstances.

Think about how much money you really need for that home renovation or new car. You may wish to use our borrowing power calculator to estimate how much you may be able to borrow.

Find out how much you might be able to borrow 

Making sure that you’re living within your means is important. You should only apply for a loan amount that you can afford to repay.

It’s important to get an estimate of your potential loan repayments. You may wish to use our personal loan repayment calculator to estimate a manageable repayment amount.

Get an estimate of your potential loan repayments

3. Review your income and money habits

When reviewing your application, we will take into account certain factors including your income, your spending habits and the amount of your regular bills.

Maintaining a good account history will help. Demonstrating this could be as simple as showing that you get your salary paid into your account, pay your bills on time and regularly set money aside for savings.

It’s important not to overdraw your account too, as this can not only cost you money, but also indicate that you might struggle with money management. 

4. Take a look at your credit score

Your credit score (also known as your credit rating) will also be a factor in the success of your application. Your score is based on the personal and financial information in your credit report. If you can demonstrate good credit-based behaviour, this will be reflected in your credit report and credit score.

Paying all of your bills and loan repayments on time could help you build a good score; but lots of missed payments, outstanding debts or loan applications can impact it. You can request a free copy of your credit report from a credit reporting body every year, so you may wish to take a look and ensure that everything’s correct. The ASIC MoneySmart website details how you can go about checking your credit score.

Knowing your credit score before you apply for a personal loan can also help you understand where you’re at right now, and whether you need to work towards making some improvements.

Next steps

Done your research? Assessed what you need and ready to go?

ANZ offers a range of personal loans that could suit your needs.

Compare ANZ Personal Loans

Or give us a call on 1800 339 410 (8am-8pm weekdays) to speak with one of our personal loan specialists.

If you have any general personal loan enquiries call 1800 801 485.

The information on this page refers to personal loans, is general in nature only and does not take into account your personal objectives, financial situation or needs and you should consider whether it right for you.

By providing this information ANZ does not intend to provide any financial advice or other advice or recommendations. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances.

The information is current as at 25 November 2020 and may be subject to change.

All applications for credit are subject to ANZ’s credit assessment criteria. Terms and conditions are available on application. Fees and charges apply. Australian credit licence number 234527.