Personal Loans

At Credit World, we help you compare personal loans and lenders side-by-side, so you can make the best choice for you.

Societyone personal loans

SocietyOne Personal Loans

Pay no monthly or early repayment fees. Getting a quote for a SocietyOne personal loan won't affect your credit score. Find out your rate in as little as 1 minute.

6.99% p.a.
fixed rate from

6.99% p.a.
comparison rate from
from 0%*
establishment fee
NAB personal loans

NAB Personal Loans

Borrow $5,000 to $55,000 to cover anything from home renovations to your next big overseas adventure.

12.69% p.a.
fixed/variable rate

13.56% p.a.
comparison rate
establishment fee
CUA personal loans

CUA Unsecured Fixed Personal Loan

A fixed rate personal loan is a great way to reach your goals. Plus, you’ll enjoy the certainty of always knowing how much your repayments will be.

9.89% p.a.
fixed rate

10.14% p.a.
comparison rate
establishment fee
CUA personal loans

CUA Variable Rate Personal Loan

Borrow between $5,000 to $60,000 with no monthly fees and a variable rate of interest. No monthly fees or early payout fee.

11.89% p.a.
variable rate

12.15% p.a.
comparison rate
establishment fee
HSBC personal loans

HSBC Personal Loans

Borrow amounts between $5,000 and $50,000 (conditions apply) at a great fixed rate. The loan term you can select is between 1 and 5 years.

8.50% p.a.
fixed rate

9.06% p.a.
comparison rate
establishment fee
St George unsecured personal loans

St George Unsecured Personal Loan

Consolidate debt or buy what you need. Choose between a fixed rate or variable rate and borrow between $3,000 and $40,000.

11.49% p.a.
fixed rate

12.57% p.a.
comparison rate
establishment fee
Banksa unsecured personal loans

BankSA Unsecured Personal Loan

Choose between a fixed rate or variable rate. Consolidate debts to a single loan, with one rate, regular repayment and set of fees.

11.49% p.a.
fixed rate

12.57% p.a.
comparison rate
establishment fee
BOM unsecured personal loans

Bank of Melbourne Unsecured Personal Loan

Borrow up to $40,000 without offering an asset as security. Choose between a fixed rate or variable rate.

11.49% p.a.
fixed rate

12.57% p.a.
comparison rate
establishment fee

If you’re thinking about applying for a personal loan, finding out more about the various options on offer can be the best place to start. Taking out a personal loan means signing a financial agreement – one that may last for several years, and involve paying back a significant amount in interest. You need to be sure to choose not only the right personal loan, but the right lender as well.

Choosing the right personal loan means comparing the options and understanding exactly what’s on offer. Which is where Credit World comes in! At Credit World, we help you compare personal loans and lenders side-by-side, so you can make the best choice for you. Want to know more? Let’s take a closer look at the finer details of personal loans.

What is a Personal Loan?

A personal loan is a type of lending product offered by banks, building societies, credit unions and other financial institutions. Generally thought of as a short-term solution for people looking to borrow money, a personal loan is usually taken out over one to seven years, although loan terms vary according to the lender and the borrower’s circumstances.

Personal loans can be used for a multitude of purposes. Some borrowers take out a personal loan to pay for a holiday or wedding, while others use their personal loan to invest in home renovations or a car. Personal loans can also be used as a debt consolidation tool, allowing borrowers to pay off other debts and enjoy one loan repayment, typically with a lower overall interest rate.

Types of Personal Loans

While personal loans can come with a variety of features, it’s important to understand the basic types of personal loan available before thinking about what features you want. First up, you have secured and unsecured personal loans to choose from.

  • A secured personal loan is secured against some form of collateral, such as a house or car. This collateral makes the loan ‘safer’ for lenders, as it allows them to collect on the collateral if you fail to pay off the loan. As an upside for you, secured personal loans tend to be easier to get approved for, and can also offer lower interest rates, making them a cheaper option.

  • An unsecured personal loan is not secured against any form of collateral. This can make them more difficult to get approved for, unless you have an excellent credit history. It can also mean you end up paying back more in interest with higher interest rates applied.

Another important factor to consider when comparing personal loans is whether it’s a fixed rate personal loan or a variable rate personal loan.

  • A fixed rate personal loan has a fixed rate of interest that remains the same throughout the entire loan term. This can make budgeting easier, as borrowers know exactly how much they will be paying back. It can also protect the borrower against interest rate rises.

  • A variable rate personal loan has a variable rate of interest applied to it, which can increase or decrease during the loan term. If the interest rate decreases, this can allow the borrower to save money on interest. If it increases, the borrower may pay back more in interest overall.

Personal Loans vs. Credit Cards

Why apply for a personal loan instead of a credit card? Personal loans and credit cards both provide borrowers with access to credit, but they are very different in the features they offer.

A personal loan allows the borrower to take out a fixed amount and pay it back over a fixed period of time. This can help the borrower stick to a repayment schedule, ensuring the full amount is paid off, rather than potentially accumulating interest like a credit card. Personal loans generally have a lower rate of interest as well, which can help borrowers save money.

With a credit card, cardholders have access to a certain amount of credit, whenever they choose to use it. The card can be used for almost anything, from supermarket shopping to an overseas holiday. Credit cards can also offer a number of handy features. With a low or no annual fee option that is paid off before interest starts accruing, a credit card can be a valuable lending tool.

Tips: Getting Approved for a Personal Loan

Ready to apply for a personal loan? Here are some tips to help you get approved.

Make Sure You Meet the Criteria

Lenders have criteria you will need to meet to be approved for a personal loan. This may include being at least 18 years old, and being a citizen or permanent resident of Australia. Borrowers may also have to currently reside in Australia, meeting minimum income requirements and receiving a regular income. Lenders may also stipulate that borrowers have a good credit rating, and are not going through the process of bankruptcy.

Choose the Right Loan Amount

Borrowers should think about the total amount they need to borrow, making sure they can comfortably pay the amount back, with interest and fees included. A personal loan calculator can make this task easier.

Check Your Credit History

Borrowers can check their credit history by applying to a credit reporting agency. This allows them to fully understand their position, knowing that this is the information the lender will look at when the personal loan application is made. Borrowers can apply to have any credit reporting mistakes rectified, while also choosing the right type of loan or lender to suit their credit rating.

Maintain Your Credit Rating

Building up a credit history and maintaining a good credit rating is essential for anyone looking for access to credit. This means paying bills and making repayments on time, on items such as mobile phone bills, electricity bills and credit cards. It’s also worth bearing in mind that making multiple applications for loans or credit cards can negatively affect chances of approval.

Choose the Right Loan and Lender

For some borrowers, choosing a lender they have a relationship with can be a good way of getting approved. The lender may look favourably on the application if the borrower has several other well-maintained financial products, with a good savings record. However, choosing the right lender and loan means thinking about what’s needed, and comparing the options on offer.

Pros & Cons of Personal Loans

Still weighing up the options? Take a look at the various pros and cons associated with personal loans to work out whether applying for a personal loan is the right option for you.

Personal Loan Pros

  • Choice of secured or unsecured options, with secured loans often easier to get approved for, usually with lower interest rates.
  • Choice of fixed or variable rate available.
  • Choice of loan term, with the ability to repay the loan over a number of years.
  • Various features available.
  • Loan can be used for a variety of purposes.
  • Fixed repayment schedule means borrowers know when the loan will be paid off, which may be easier to stick to than other forms of credit, such as a credit card.
  • Interest rates can be lower than other forms of credit, such as a credit card.

Personal Loan Cons

  • Borrowers have to decide how much to borrow before applying for the loan.
  • Borrowers have to know how much they can afford to pay back before making an application.
  • Some personal loans do not allow for early repayment or extra repayment options.
  • Some personal loans attract a range of fees, which should be taken into account when budgeting.

Best Practices for Personal Loans

So, now it’s time to start looking at personal loan options. Here are some ways you can get the most out of your loan, so that it provides you with everything you need.

Choose the Correct Loan

Choosing the correct personal loan means thinking about how much you will pay in fees and interest, looking at the repayment schedule to ensure you can afford it. Think about how much you can afford to borrow, and how much you can afford to pay back. Look at the features on offer, shop around to get the best deal, and be sure to opt for a reputable lender. Always read the small print!

Make Repayments On Time

Once you are approved for the personal loan, be sure to use the loan amount sensibly, sticking to the budget you originally allocated. Always make your repayments on time, either by setting up a direct debit payment, or by setting yourself a reminder. If your loan allows for it, you may want to pay off your loan early, making extra repayments, if that is an option.

Communicate With Your Lender

If you’re having trouble paying off your loan or making your repayments, contact your lender and talk to them about your situation. Don’t allow yourself to get into trouble by trying to ignore any problems you’re having.

Time to compare! Check out the personal loans on Credit World now to find the best personal loan for you!