If you want to borrow a large amount of money from a financial institution such as a bank you need to start small. This means that you need to pay your bills on time and meet any debts that you have.
If you don’t pay these small bills you can jeopardise your access to credit in the future. This will mean it is more difficult for you to borrow money for bigger purchases like a car or a house.
Applying for a loan
Having a good credit record is a major factor if you are being considered for a loan, or a credit card. Other factors may include:
• Your employment;
• Your income;
• Your savings;
• Existing liabilities.
If your loan application is rejected, ask the credit provider to explain exactly why. Do what you can to fix your credit rating for next time.
In some circumstances, you can access a no-interest loan from a community agency.
The No Interest Loan Scheme (NILS) will lend up to $1200 to low income earners, with low repayments from $20 per fortnight, for the purchase of essential electrical white goods, such as refrigerators, washing machines, or televisions.
Documents are required to verify income, expenditure, identification and loan purpose.
NILS is delivered through local community organisations in 650 locations across Australia. Find your local provider here.