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Am I eligible for a personal loan?
Find out everything you need to know about personal loan eligibility to give yourself the best chance of being approved.
Applying for a personal loan, whether it's secured or unsecured, fixed rate or variable, or for $3,000 or $30,000, is a big financial step. Finding the right loan can be difficult and getting approved can often be even harder. Every loan application you make is listed on your credit file, so you want to make sure you're eligible before you apply.
Below you'll find a guide to each of the eligibility criteria that lenders consider when you apply for a personal loan. While standards differ between lenders, there are some general rules that will help you get approved.
Read our guide to get a better understanding of how to work out if you are eligible for a loan and where to find a loan that will meet your needs.
What you can do on this page
See if you'll be eligible to apply
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Tips to get your personal loan over the line
If you're unsure about your eligibility or worried you may not be approved, consider the following tips to help give your personal loan application a boost:
- Open a transaction account with the lender you're applying with. If you're applying with a bank that has transaction accounts and the personal loan isn't time-sensitive, establishing a banking history with the lender can help get your application across the line. It can also speed up the application process.
- Reduce the limit of your credit card/s. Not using your entire credit card limit? Consider lowering it if you're not planning to use it soon. You'll need to list the total limits of your credit cards on your personal loan application and any credit limit will be seen as a potential debt by the lender.
- Pay off some of your credit card before applying. While the Australian credit scoring system doesn't work in the same way as the US, where paying off your credit card can lower your credit score, it may help your loan application. If you take a look at your loan application (before submitting it) and the lender asks what is owing on your credit cards, see if you can pay down the cards before sending in the application. Lenders are able to check the limit of your card on your credit file but not the amount owing, this is up to you to tell them.
- Make sure you're out of your employment probation period before you apply. Lenders don't want to take the chance of giving you a loan during your probation period. They will not approve a loan if you haven't been employed at least three months, no matter how secure you tell them the role is. If you have been employed six months the lender may call your employer to confirm you're out of your probation period.
Remember that no personal loan application is guaranteed, so use the guide above to ensure you're giving yourself the best chance of approval you can.
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Ask an Expert
Hi just wanted to know if you have any advice for me I am looking for a loan to consolidate my debt I am so stressed and feel like there no hope at the moment I know that if someone would just give me the chance they would not regret it I am employed full time (7years)own a car (8000) and own my home 800000 my debt is about 20000 dollar any help would be greatly appreciated thanks
Hi Linda,
Unfortunately I can’t recommend any lenders to you – you can compare your personal loan options here and click through to the review pages to find eligibility criteria for each loan. If you meet the criteria you are eligible to apply.
If you’re looking to financial advice you can call the free financial counselling hotline on 1800 007 007.
I hope this helps,
Elizabeth