How to Get a Personal Loan With Fast Approval

There are a number of reasons why you might apply for a personal loan. Personal loans are helpful for settling emergency expenses or financing the next home improvement project you have in mind.

Regardless of the reason, the truth is that we all prefer to get our personal loan applications approved quickly. But did you know that you play a pretty big role in determining how fast your personal loan is approved?

While the lender's policies also determine the turnaround time, there are several things you can do to make the process a little faster.

Do Your Homework

Not all lenders in NZ are equal, and some lenders have invested in highly efficient loan processing facilities. For example, some lenders use computer algorithms to process online loan applications as quickly as possible. While all lenders claim that they have fast loan processing capabilities, talking to people who have actually borrowed from the lenders will give you a realistic idea of what to expect from them.

Testimonials from past customers are also a helpful guide. Identifying financial partners that offer speedy turnaround when it comes to personal loans is the first step in getting your loan quickly.

Apply For Your Loan Online

While there are many different ways you can use to apply for a personal loan, the quickest way to get the funds you need is through an online application. Many lenders in NZ have parallel online application portals for people looking for personal loans.

The beauty of online applications is that your loan is processed much faster, mainly because the process is automated. Once your information and any required documents are verified, a decision can usually be confirmed in a matter of hours. Any communication between you and the lender for verification or clarification is done via email or phone, which helps speed up the process even more.

Ensure You Have A Healthy Bank Account

One key factor of how quickly you are likely to get your loan approved is how creditworthy you appear to a lender. Maintaining clear and healthy bank account balances is a great way to show lenders that you are good for the personal loan you are applying for. If you are on a salary, how consistent are the income and expenditure transactions in and out of your account?

The more predictable and consistent your financial history is, the more likely you are to have your personal loan approved quickly. Apart from easing the process of getting personal loans, you will find that having a healthy bank account will also help you to access other financial products such as pre-approved loans.

Focus On A Few Well-Selected Lenders

Many borrowers make the mistake of applying to many financial lenders, hoping that at least one will come through with a loan. On the face of it, this seems like a great idea, as it means you spread your net a lot further. However, there are a few problems with this approach.

The first is that doing this makes it very difficult to research each lender to understand the terms and conditions of the loan. Not all personal loan products are a good fit for you based on interest rates, repayment terms, etc. Understanding this is essential to staying financially healthy. Rather than send many ill-thought loan applications around, you are better off shortlisting a few lenders and crafting a convincing loan application with the proper supporting documents.

Ensure All Your Supporting Documents Are Available

One of the great things about unsecured personal loans is that lenders don't often ask you for many supporting documents. However, loan applications tend to be dealt with on a case-by-case basis, and it is not unheard of for a lender to ask for supporting documents.

The type of documentation varies but could include your bank statements, your latest tax returns, etc. Whichever the case, it speeds things up to have these documents ready ahead of time.

Give Accurate Information

Whenever you provide information to a lender, you must always expect the lender to verify it. This is why giving false information in your personal loan application is a mistake. When your lender discovers that your data has errors, they may attribute it to mistakes and ask you for clarification. They may also assume that you deliberately lied, which will either slow down your loan application process or may lead to the application being declined altogether.

When it comes to financial lenders, it’s better to explain any gaps in your information rather than lie about it. For example, if there is a gap in your income because you’re between jobs, you are better off explaining that to your financial lender.

Borrow Manageable Amounts

When you apply for a loan from a financial lender, one critical factor determining how quickly it gets approved is their assessment of your ability to repay. When you borrow manageable amounts based on your income, it makes it easier for the lender to say yes to your application.

Borrowing amounts beyond your credit limits will force the lender to re-examine your application to understand how you intend to repay the loan. It may even lead to the loan application being declined. You can easily avoid this by borrowing amounts that you can repay easily based on your current income.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Get A Personal Loan Today From Better

With fast turnaround and a smooth application process, Better is the preferred financial partner for many Kiwis. Our online application process is streamlined to make your loan applications easier, and loan decisions are usually made within hours of application. Apply for a personal loan today from Better.