What are the key variables that determine if my personal loan will be approved?

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At [name], we don’t provide things like ‘pre-assessment’ or ‘pre-approval’ guidelines that effectively tell you whether you’ll be accepted for a personal loan prior to application, but we’re happy to share some of the variables that we consider when assessing your loan application.

After all, we’re here to work for you, and if we can help you get your financial circumstances in order, therefore making it easier and more likely that we can help you, we’re only too happy to do so.

NOW FINANCE’s Eligibility Criteria

The first thing you should do is check out our eligibility criteria page. Understanding these points will enable you to see whether you should apply in the first instance. If you don’t meet these criteria, then your application won’t be approved.

As any application (successful or not) will be registered on your credit report, we encourage anyone seeking a loan not to apply should they be aware that they do not meet these criteria in full.

Our credit reference agency will consider a number of additional factors when determining your suitability for a [name] loan.

We will explain some of these shortly, but below is a brief overview of our own eligibility criteria, which are in place for the benefit of our customers as well as to ensure we are a responsible lender.

“If you have an unpaid default this will influence your credit score to the point where you wouldn’t be approved for a NOW FINANCE personal loan anyway, so this is really a pre-warning so you don’t potentially damage your credit score even further by applying anyway then having ‘footprints’ added due to a check being made.”

Be an Australian Citizen or Permanent Resident

Would you lend money to someone on holiday? As well as ensuring the person lives in Australia and has an Australian bank account they can use to make their repayments, this requirement also ensures all applicants have some form of credit history in Australia and can be credit checked fairly and accurately.

Working visa applicants cannot apply for a [name] personal loan.

Be 18 Years or Older

This is largely self-explanatory. We only lend to adults as they are legally responsible for their own financial affairs and therefore accountable for loan repayments themselves.

Hold a Suitable Form of Identification

We need to know you are who you say you are before we provide you with your loan. In order to pay you your money we must see suitable identification.

The identification we accept is either:

  1. Your passport alongside proof of address, from a document no more than three months old.
  2. Two of your passport, driver’s licence, or Medicare card.

Have No Unpaid Defaults

If you have an unpaid default this will influence your credit score to the point where you wouldn’t be approved for a [name] personal loan anyway, so this is really a pre-warning so you don’t potentially damage your credit score even further by applying anyway then having ‘footprints’ added due to a check being made.

Unpaid defaults are a clear sign of someone either unreliable or not in control of their finances, or both, which is why we won’t lend to such individuals.

Not be Bankrupt or Have a Court Judgment

This is similar to the point above. A court judgment usually means your default is still outstanding and a lender has had to take legal action to secure their repayments, while bankruptcy might have happened if you were unable to pay against any court judgment.

Being bankrupt now or in the past will automatically exclude you from being accepted for a [name] personal loan.

Again, like applying if you know you have an unpaid default, if you do apply for a loan despite being bankrupt or having a court judgment against you, a credit check will still be run against your name, which potentially will damage your credit rating further.

Be Employed

We only lend to those who are in employment. This ensures they have a regular income in order to repay their [name] loan.

We accept applicants that are in various forms of employment, including full time, part time, and self-employed individuals. Those that are employed on a casual basis may also apply, although the casual tenure of their employment must be six months or greater.

Applicants may also use Centrelink income as a secondary income source when making their application to [name].

Your Loan and Repayments

At [name] we offer loans from $4,000 up to $25,000. We will be unable to provide you with a personal loan outside of these amounts.

Our loans are all repayable over a period of 18 to 60 months.

Your interest rate and repayment amount will depend on the loan amount and the period over which you choose to repay it. You can use our personal loan calculator to get a guideline interest rate and repayment schedule prior to contacting us or applying.

No Joint Applications

Unfortunately, we do not accept joint applications.

Additional Credit Rating Based Factors

In addition to our own eligibility criteria, there are a handful of other factors that we consider when determining whether your personal loan application is approved.

Some of these are alluded to in our recent post, What’s the Best Way to Increase my Credit Rating?

The following factors alone won’t ultimately determine your likely application success one way or another, but when considered together with our eligibility criteria can give a good indication, particularly if you check and maintain your credit report yourself.

Number of Recent Credit Applications

Recent covers the past 12 months. While there is no limit on the number of times you can apply for credit, if you’ve done so more than a handful of times in the last year this will be seen as excessive and an indication that you have a desperate need for credit.

Types of Credit You Already Have Access To

If you have a mobile phone contract that you pay on time without fail each month, and a credit card that you use for small purchases and keep on top of the balance, then it is likely you will be considered a reliable borrower, which will positively influence your application.

Alternatively, if you have access to $10,000 in credit cards and these are all close to their limit, you may be perceived to be a credit risk, even if you maintain your repayment schedule.

Your Age & the Age of Your Credit File

These points aren’t necessarily huge factors, but depending on how you score against the other criteria, they could well make the difference.

For example, evidence based on repayment trends and history suggests that borrowers are more reliable in their mid-thirties and older.

This is why a motor insurance broker will charge a higher premium to insure a 21-year old driver than they would a 40-year old one (if all other variants are similar).

Regarding the age of your credit file, a lender will be looking to see whether there is some sort of credit history in place. This factor will be missing for those that have just turned 18 and are taking out their first mobile phone contract or low limit credit card, but is part of the process of building up a credit history and score over time.

Using Your Credit File

As well as using the pointers we’ve provided here, be sure to access your credit file with a credit-referencing agency, to understand how likely you are to be accepted for a [name] personal loan or any other financial service or product.

Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs.  Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

Things you should know

Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply.  No establishment, account keeping or early repayment fees will apply. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years.  For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).  For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).

*About Comparison Rates

The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Due to the fact NOW Finance does not charge any establishment, account keeping or early repayment fees, the true cost of the loan or Comparison Rate will always equal the interest rate quoted.


our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details.  In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW FINANCE is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030