The Do's and Don't's when applying for a loan

Do.

1. Have stable employment

• You must be in a stable job before applying.

2. Have a good savings history

• Show genuine savings with regular and consistent deposits in a dedicated savings account.

3. Monitor living expenses

• Be aware of your living expenses and keep them consistent.
• Review bank statements and reduce costs where possible.

4. Lower liabilities

• Minimise credit card and personal loan limits.
• Pay any ATO debts promptly.

5. Have a good credit rating

• Avoid lodging loan or credit card applications.
• Make sure accounts aren’t 9 Aim to resolve problems. overdrawn or in arrears.

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Don't

1. Change jobs

• Don’t move jobs too often.
• Lenders like to see consistency.

2. Over-extend yourself

• The bigger the deposit the better the interest rate from the bank.

3. Live on credit

• Save a deposit before you buy.
• Avoid big ticket items and using credit cards and personal loans.

4. Have unpaid debts

• Pay your credit card balance and personal loan repayments on time each month.
• Don’t owe the ATO any money.

5. Turn a blind eye

• Disclose credit history problems.
• Aim to resolve problems