Nick Ray

There are a multitude of financial tools out there to help you achieve your goals; one of the most popular and flexible options is the Personal Loan. Personal Loans can be a great way to consolidate your current credit card debt, fund a new venture, or help you pay off other high-interest rate bills. If you’ve considered the options and feel certain that a Personal Loan is the right choice for your goals, the next step is to ensure you have the highest chance of approval.

Follow these 5 tips to boost your chances of a successful personal loan application on the first try.


Most lenders have a set of minimum requirements for their personal loan products. While you may have great credit and a stable income, it’s possible that you might not meet one of these common requirements just yet. Before you begin applying, ensure you meet the minimum requirements to qualify for the loan. Check the list below to see if you meet the most common qualifications that lenders look for when approving Personal Loans. -18+ years old -Latest bank statement reflecting at least 3 salary deposits -Have a South African ID Book -Proof of Residence within the last 3 months


When reviewing your Personal Loan application, the Lender will check your credit history via a credit report. As mentioned in Tip #5, the minimum requirement is to have a bank statement with at least 3 salary deposits. However, the better your credit history, the higher your chances for approval. So, the next step is to obtain a free credit report that will show your credit history. Check for any defaults or late payments. If you find a recent history of unpaid fees or late payments, you may want to consider working on this before applying for the personal loan. By improving your credit history, not only will the Lender be more likely to approve your application, you may also receive more favorable rates on your loan. To make improvements to your credit history, begin making regular payments on any outstanding debt and do not miss payments. While there is not much you can do about any missed payments in the past, the Lender will look at your most recent history first and establishing a good track record now will ensure you have the best chance for success when applying for the Personal Loan.


While your credit history and credit score are related, your credit history is actually only one of many pieces of information used by credit bureaus to determine your credit score. Even if you have a great credit history, you still might not have a great credit score. If you don’t already know what your credit score is, use a trustworthy online credit reporting agency to check your credit score and see where it falls in the range of scores below:

760+ = Excellent

700+ = Good

640+ = Fair

Once you know your credit score, check with the Lender to learn more about the rates and terms offered to individuals with certain credit scores. If you feel like a slightly higher credit score could improve your chances of approval or significantly improve the terms of the Personal Loan you are applying for, then you may want to take the time to review your credit score report to see exactly what is bringing your score down and where you can make the fastest improvements. However, if you meet the minimum requirements and there is little incentive for improving your score beyond where it currently is, it might be time to check Tip #2.

2) Show a Stable Source of Income and Residence

One of the biggest factors that will affect your chances for approval is the stability of your employment and living situation. When Lenders check your application, they will look to see how long you have been working at your current place of employment and how long you have held residence at your current location. The longer you have been at your job and the longer you have lived in the same location, the higher your chance is for receiving a Personal Loan. On average, Lenders view applicants who have held the same job for 3 years and have lived in the same residence for 2 years as highly stable and are more likely to approve your loan. This does not mean that they are unwilling to lend to individuals who have resided in their current homes for less than 2 years, it simply means that the longer you live and work at the same locations, the more stable and reliable they will perceive you to be. If you have a great credit history and an excellent credit score, but just moved to a new city or just started a new job, you may benefit from waiting a year before applying for a Personal Loan. If you have been working and living in the same place for over a year and feel ready to apply, check our last tip to ensure you have the highest chance of quickly securing a Personal Loan.

1) Demonstrate Repayment Ability

The most critical aspect of your application will be your ability to repay the loan. Even if you meet all the minimum requirements, have an excellent credit history, a great credit score, and have been living and working at the same place for the last 10 years, a lender will still need to see where you will get the money to repay the loan. The Lender will measure your stated income against your expenses to determine if you have the capacity to repay the loan. The more income you have compared to your expenses, the more likely you are to receive approval for your Personal Loan application. While you may not be able to immediately increase your income, you might want to take a look at your recurring expenses to see if you have any opportunities to decrease them before you apply for the loan. Do you have any outstanding credit card debts? If possible, pay off the credit card first to remove it entirely from your expenses. Are there any subscription services that you do not need? Magazines, cable or streaming tv, bottled water, gym membership, etc. You may not need to give these things up permanently, but removing them from the list of expenses while applying for the loan will certainly help your recurring expenses look smaller when compared to your income.