Congratulations on having paid off your personal debt! You may be wondering if you’re qualified for another loan now that you’ve proven to be responsible with money. The good news is that most lenders will allow borrowers to obtain another loan after they’ve repaid a prior one, although the terms of eligibility vary from lender to lender. Read on to find out more about obtaining loans and how Credit Repair Ausvengers can help to fix credit rating!

Whether it’s a surprise bill, an urgent repair, a necessity for a new automobile, or simply want to go on vacation, you’ve decided you need another personal loan.

So, can you get a personal loan while still paying off an existing one? Or, can you apply for a new personal loan as soon as your previous one is paid off? Let’s look at these possibilities below.

To understand how quickly you may apply for a new personal loan, it’s crucial to know how to optimize your chances of being accepted. A personal loan provider may not mind if you currently have a personal loan or have just paid one off before you apply – as long as you fulfill their criteria and can responsibly repay the debt.

A personal loan lender will consider a number of criteria to determine whether you are likely to be approved. These factors all assess your capacity to service the debt, implying that you can afford to make payments.

Personal loan assessment is a complex process that involves evaluating numerous factors. Containing personal identification, including your age and status as an Australian citizen or permanent resident. Whether you have a good to excellent credit history and your proof of income (payslips, tax returns). Your details of expenses (bank statements, rental logs, mortgage repayments), and Details of assets (property, shares etc.) are all important elements.

A personal loan lender will calculate how much money you want to borrow against your earnings and other expenses and obligations. A previous personal loan would fall into this category. If the lender determined that you could not possibly repay an additional amount AND ITS RECURRING DUES, your application may be denied if you were paying off a personal loan at the time of applying for another one.

A lender may readily approve you for a new personal loan if you meet the above conditions after just paying off a personal loan. Any debt you take on will be recorded in your credit history, however. Some lenders may find it threatening to have frequent credit appearances in your history, especially if you’ve had trouble making payments on time. And applying for many loans at once might seriously damage your credit score.

A lender may choose to grant you a new personal loan straight after paying off an old one, based on your individual financial circumstances. However, there are certain situations in which it is advised that you wait.

If you’ve lost money. Even if you were approved for one loan worth a particular amount of money, a lender may not offer you the same loan again, particularly if your circumstances have altered. Your application might be rejected due to an employment loss or a decline in household income. Wait until your earnings rebound or apply for a smaller loan amount to improve your chances of acceptance.

If you’ve just started a new job, as lenders look for financial stability and seeing that you’re employed with one firm for at least three to six months will help your case. If you’re just starting a new employment, it’s probably not worth applying for your new personal loan until after the end of your probation period.

If your credit score could be higher, it might affect your chances of obtaining a personal loan. While some lenders may offer personal loans to Australians with bad credit, a good to excellent credit score is preferable. If you’ve paid off a personal loan recently, the fact that it’s been paid off can help raise your credit rating. It may be worth waiting until this positive event has been recorded in your credit history and score before applying for a personal loan.

At Credit Repair Ausvengers, we are dedicated to helping you obtain the finance you need. We have a team of credit repair experts who can help fix credit rating and give you the best chance of being approved for a loan. Contact us today to get started on repairing your credit! We offer a free credit file assessment so that you can find out how we can help clear your credit history and finally fix credit rating. Don’t wait any longer – fix credit rating today!

Source: Jasper