Whether you’re in between paychecks or just trying to keep your finances on track, it can be hard to stay afloat when you need to rely on loans. Fortunately, it doesn’t have to be impossible.
By using these seven tips, you can successfully increase your personal loan from Commonwealth Bank and get the cash you need when you need it most.
1) Be able to prove your income
You can borrow up to 60% – 80% of your annual income, provided your bank can verify your income. You’ll need to prove this by supplying two pay slips or a recent pay slip and bank account statement.
If you’re self-employed or have other sources of income, you may not be eligible for increasing a personal loan.
2) Get references from past clients
When you’re trying to get a personal loan from Commonwealth Bank, one of the best things you can do is get references from past clients.
This will show the bank that you’re a responsible borrower and that you’re capable of repaying your loans on time.
The more satisfied customers you have who are willing to vouch for you, the better chance you’ll have of getting approved for a higher amount.
3) Reduce your debt before you apply
This will show that you’re managing your finances responsibly and give the bank confidence that you’ll be able to repay the loan. Here are a few ways to reduce your debt
- Pay off high interest rate debts first
- Consolidate credit card balances into one low interest card
- Negotiate with creditors for lower rates
- Use all available credit limits before borrowing more
You should always try to use up as many of your existing lines of credit as possible before applying for a new line of credit. Most banks want to see that you’re utilizing what’s already available to you before giving you access to additional funds.
4) Avoid hard credit checks
One way to increase your personal loan is to avoid hard credit checks. These can ding your credit score and make it harder to get approved for increasing a loan.
Here are seven ways to increase your personal loan at Commonwealth Bank:
- Pay your loan off in full each month
- Make monthly payments on time
- Keep your total balance below the borrowing limit
- Avoid hard credit checks altogether if possible
- Use an overdraft facility on your account to boost your score if you can’t pay off all the outstanding balances in full each month
5) Consistently make payments on time
One of the best ways to improve your chances of getting a personal loan is by making all of your payments on time. This demonstrates to the bank that you’re responsible with money and can be trusted to repay a loan.
Missed or late payments will damage your credit score and make it harder to increase or get a loan in the future.
6) Create a convincing budget
This will show the bank that you’re serious about repaying your loan and that you have a plan for doing so. Your budget should include how much money you spend on necessities like food, rent, utilities, etc., as well as what percentage of your monthly income goes towards discretionary spending like travel, entertainment, clothes, and going out.
If there’s not enough left over to cover all of these expenses then it may be time to rethink some of these things or find ways to make more money.
If you’re looking for ways to increase your personal loan at Commonwealth Bank, there are a few options. You can apply for a higher loan amount, extend the loan term, or make extra repayments.
You may also be able to refinance your loan or consolidate your debts. Speak to a loan specialist today to learn more about how you can increase your personal loan.