powering smart financial decisions

What is my chance of approval? 

Did you know that if you apply for a personal loan and get rejected, it will negatively affect your credit score? 

To help prevent a bad mark on your credit history, RateCity has created the Personal Loan Marketplace, which assesses your likelihood of being approved for a loan and sorts your search results by your highest chance of approval.

How is my chance of approval calculated? 

RateCity has examined the lending criteria of Australian institutions and created a formula that helps determine whether your loan will be approved. 

To do this, we look at five key factors: 

  • The amount you want to borrow
  • Your income
  • Your credit score
  • Your employment details
  • The loan purpose 

Using our chance of approval formula, we grade each loan product in the search results from the Personal Loan Marketplace on a four-colour scale of red (poor), orange (fair), yellow (good) and green (great):


What does my score mean? 

As every loan product is different, and so are every individual’s circumstances, there is no one set score for each person. 

RateCity has instead graded each loan either red, orange, yellow or green to indicate whether you are likely to be approved. 


A chance of approval rating in red indicates that your approval is unlikely. 

Fair Good

A chance of approval rating in orange or yellow indicates that you would meet the minimum requirements, but don’t necessarily have a strong application.  Great

A chance of approval rating in green indicates that you are likely to be approved, with a higher chance of success.

IMPORTANT: RateCity’s Personal Loan Marketplace offers an estimate of your chance of approval only. Our rating system does not mean a bank must approve you for the loan. All loan products are subject to approval from the bank themselves.


Ian wants to borrow $12,000 for a holiday. He visits RateCity’s Personal Loan Marketplace and begin to enter his details.

Step1 (3)

He makes $80,000 a year, has a credit score of 850 (excellent) and has been working full time for more than 12 months.

Step2 (2)

As Ian’s borrowing amount does not exceed his income, his credit score showcases his reliability with money and his employment history is stable, he will see a green Chance of Approval rating for this product when he compares personal loans with RateCity’s Personal Loan Marketplace.

Step3 (2)

After comparing personal loans and making a decision, Ian proceeds directly from his RateCity search results to the lender’s website to start his application process.

Should I apply for a loan if it has an orange/yellow rating? 

As long as you still meet the minimum requirements for loan approval, you can still choose to apply for a loan with an orange or yellow chance of approval.