At Credit World, we help you compare personal loans and lenders side-by-side, so you can make the best choice for you.
Make your dreams a reality with a fixed rate HSBC Personal Loan. Flexible loan terms from 1 to 5 years. Borrow between $5,000 and $50,000.
A low fixed rate, no ongoing fees and no early repayment fees. Borrow between $5,000 and $30,000.
Borrow between $4,000 and $50,000 (conditions apply). Flexible loan terms from 1 to 7 years. You can refinance an Australian, non-Westpac Personal Loan, credit card or store card.
Consolidate debt or buy what you need. Choose between a fixed rate or variable rate and borrow between $3,000 and $40,000.
Choose between a fixed rate or variable rate. Consolidate debts to a single loan, with one rate, regular repayment and set of fees.
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.
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.
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.
Another important factor to consider when comparing personal loans is whether it’s a fixed rate personal loan or a variable rate personal loan.
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.
Ready to apply for a personal loan? Here are some tips to help you get approved.
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.
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.
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.
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.
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.
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.
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.
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!
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.
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!