Have you ever applied for a personal loan where you meet all the requirements only to know that your application is rejected because your payments come from Centrelink? It can be hard to accept that a lender or bank denied your loan request because your income comes from Centrelink. However, several financial institutions offer short-term loans for people on Centrelink benefits. With that said, let’s explore how you can get a loan if your income is from Centrelink.
How to Get a Loan If You Are On Centrelink
The key to getting a loan is patience and understanding how loans work. If your income is from Centrelink, don’t lose hope. You can secure a personal loan if you know how the system works. Here are three ways to secure a loan if you are on Centrelink income.
1. What Percentage of Your Income is From Centrelink
Before applying for a loan, you should determine what percentage of your income is from Centrelink. If Centrelink supports a substantial chunk of your income, you might have trouble securing a loan. However, if you have other sources of income, you can show that in the loan form, and your loan application might get approved. It’s a tough process, and you need to be patient. But soon, your loan application will be accepted if you play your cards right. Remember, if Centrelink supports 50% of your income, you might have a small chance of securing a loan.
2. Don’t Send too Many Applications
Sending too many applications doesn’t strengthen your case. Once you send an application for a loan, wait for a response. Most of the time, the response is in your favour. However, if your loan application is rejected, you can send another one. But you should wait a couple of days before lodging a new application.
3. Have a Strong Credit Rating
Surely you had a financial history before time got challenging, and you had to rely upon ion Centrelink. If your credit history is strong and you receive $1600 a month or $400 per week, you have a chance of securing a personal loan. However, if you don’t meet the above financial criteria securing a loan can be difficult and time-consuming. Because banks and other financial institutions evaluate your earnings before they lend you money. If Centrelink supports your income, financial institutions will not be interested in lending you money.
Living off Centrelink income isn’t shameful if you are disabled or unable to earn your own money. Moreover, there are times when you need to make a large upfront payment, and it’s only possible through a loan. The above information will help you secure a personal finance loan. However, if you cannot get a loan living off Centrelink income, you can apply for a secured loan.