5 tips to help you get a personal loan approved

At Gedda, we Geddit. Sometimes you need a little help. You may need a hand paying for your wedding. Or, your kitchen needs a little TLC. Maybe you get hit with an unexpected medical or dental bill. Whatever it is, if you need fast access to cash, Gedda is here to help.

If you’re looking for a personal loan, but have bad credit, navigating the application process can be a bit of a minefield. That’s why we created this roadmap. Read through our five top tips to help get your next personal loan approved.

…the lender is going to look at your financial history to see if you’ve reliably made your repayments in the past.

General Information only.

*** Gedda Money is not a financial adviser. The information contained below is general in nature and is not personal financial advice. Therefore, you should consider seeking independent financial advice to determine if the information below is appropriate for your personal circumstances. ***

1. Minimise ATM cash withdrawals

Do you regularly withdraw money from the ATM? Maybe you’re old school and like to keep your money where you can see it. Or, maybe you just like the feeling of holding your hard-earned money in your hands.

We hate to be the bearers of bad news, but your ATM habits could be hurting your chances at loan approval. Since reviewing your bank statements can be an important part of assessing your application, cash withdrawals can be seen as a red flag. Often, lenders will see a lot of ATM activity and consider it discretionary spending or potentially even gambling. Want to avoid this? Minimise your ATM visits and keep your money in your account as much as possible.

2. Avoid dishonours

When you’re juggling a lot of financial commitments, it’s easy to let a payment or two slip through the cracks. If an automated payment fails due to insufficient funds, it’s usually considered a dishonour.

When you apply for a personal loan, the lender is going to look at your financial history to see if you’ve reliably made your repayments in the past. Most lenders understand that mistakes happen and there are often things outside of your control. If you’ve had some dishonours in the past and want to apply for a loan, the Gedda Money team are always happy to chat and discuss your options.

3. Avoid payday loans

Payday loans may seem like a quick and easy solution to your money woes, but they can actually do more harm than good. This is especially true when they are used to cover everyday expenses.

Before you apply for a payday loan, make sure you understand how it will impact your credit score as well as any future loan applications. Many lenders see previous payday loans as an indication that you were unable to manage your money.

4. Avoid high volume of bank transfers

A big part of loan approval is making sure you’re a sensible spender. If you’re in the habit of transferring large sums to a partner or family member this can hurt your application. If a lender can’t see how your paycheck is being spent, they can’t determine whether you’re responsible with your money.

Try and keep your bank statement activity as clear and concise as possible. If you need to make regular transfers, make sure they’re clearly labelled. As long as the potential lender can see where your money is going each month, you should get a fast approval decision.

5. Ask for advice

Had some past problems that may affect your loan application? Team up with a broker! Brokers know the ins and outs of lending and can help you find the best solution for you. They can also help you to complete your application and give you the greatest chance of being approved.

With Gedda’s personal loan solutions you can consolidate your debts, renovate your home, pay for your wedding or cover unexpected medical bills. If you like the sound of that, just wait, it gets better! At Gedda, we don’t look at your credit score when assessing you for a loan. So, if you’ve made some credit mistakes in your past, you can still Gedda loan with us! Start your application today or get in touch to learn more.

Let’s keep in touch

To be the first to receive updates, subscribe to our newsletter of follow us on social media.