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Looking for the best personal loans in Australia? Banking and non-banking financial institutions in the country offer a variety of personal loans. A detailed comparison of personal loans in Australia reveals significant variations in the offering based on the eligibility criteria, user conditions, interest rates, loan amount, credit score requirements, fees and repayment term. As you scan through the available options, these variations come to the fore.
However, finding a suitable and value-packed offer requires you to be aware of certain essential elements well before you begin the hunt for the best personal loans in Australia. To help you out, here are some of those important things you must know before you seek a personal loan. Nifty is here for you.
Whenever you have a deficit or financial difficulty and you need extra funds to overcome that, you may apply for a personal loan. A personal loan is a short-term loan that you can apply for whenever have an urgent need for funds. If you confront an emergency or an unforeseen event that requires quick funds, depending on your personal situation, a personal loan could be your best option. Whether you need funds for medical treatment, marriage expenses, existing liabilities, business expenditures, or an overseas trip, you may want to opt for the best personal loans in Australia.
In other words, you have the option of applying for a personal loan in Australia whenever your regular paycheck is not enough to meet out of the ordinary purchases or unexpected financial liabilities. Also, a personal loan is often quick, offers faster access to funds and can be 100% online, meaning you can apply from the comfort of your own living room!
A personal loan will always be assessed on your current situation. Thus, the best loan depends on the applicant’s financial circumstances. The best personal loan is one that you can afford to pay back without getting into financial difficulty while offering competitive rates and fees for your circumstances. When it comes to loans, there are generally two types you can opt for: secured or unsecured. If you’re after a small loan to cover some short term expenses, then an unsecured personal loan may be the best option for you. Whereas if you’re looking to borrow a larger amount, securing your loan with collateral could be a better option, as this could result in a better interest rate.
No doubt the lowest rate of interest is an incentive worth considering. However, be careful because sometimes if the interest rate is lower, the fees can be a lot higher. Again an extended loan term is an enticing offer but a high rate of interest may ruin it with an enhanced total cost of the borrowing. When trying to find the best loan, make sure you way up the total costs of your different options before making a decision. Ease of an application process makes sense but the inability to get the amount you need to fund the expenses may defeat the purpose of the borrowing.
So, what constitutes the best personal loans in Australia. Usually, it is a combination of factors that one must pay attention to. Here are 11 criteria you should at a minimum take into account to consider a personal loan offer as the best.
A personal loan approved without any collateral is an unsecured personal loan. There is no security against the loan repayment and hence it is called an unsecured loan. Accepted collateral usually comes in the form of a car, motorbike, boat or caravan. Most lenders customize their unsecured personal loans in Australia and this allows a range of options for borrowers. UnsecuredThese loans tend to come with a higher interest rate, which varies from lender to lender.
This doesn’t mean that the best personal loans in Australia can not be an unsecured personal loan. It is often easier to get loans from $1,000 to $10,000 with a repayment plan ranging from 1 to 5 years. You may not need to attach an asset to a loan and you can choose from a variety of products considering the most suitable option for you. Wondering how to find the best unsecured personal loans in Australia? Here are a few tips:
Personal loans impact your credit score in the short term, but its repayment improves your rating in the long term. About 10% of your credit score is minted through loan applications. Whenever you apply for the best personal loans in Australia, your credit score is subject to inquiry or review. Multiple reviews in a month or week is an indication of your frantic efforts to get a loan. It also highlights you may be accumulating debt. This can mean your financial health is not in a sound position and can reduce your credit score.
However, as you repay the loan timely or according to fixed monthly payments, your credit score can improve. About 35% of your credit score is derived from your loan repayment history. Timely personal loan repayment boosts your credit score and takes it to a significantly higher level. But a missed instalment may bring it down. Also, high loan balances and a good debt-to-income ratio have a negative impact on the credit rating.
Unsecured loans can cause a slight dip in the credit score initially, due to an inquiry. However, it is often temporary and your credit score improves as you repay the loan as per the pay-back schedule. If your credit file shows overdue bills and payment defaults on a personal loan, that can lower your credit score significantly.
The best personal loans in Australia can be either secured or unsecured. In the case of secured loans, you pledge a fixed deposit, property or something worth the value of the loan.
For an unsecured personal loan, your credit history can be a deciding factor. As there is no surety to protect against a default, your debt-to-income ratio, previous history of loan repayment, credit behaviour and the ability to pay back matter the most. Lenders make aggressive scrutiny and this can push your rating down. However, this can be overcome as you repay the personal loan.
Yes, it is still possible to get some of the best personal loans in Australia with a credit score of 550. In Australia, credit scores are rated between 0 and 1,200 based on the credit history of a person. A score above 700 is considered very good while any score above 600 leads to easier approval of unsecured personal loans. A credit score at 550 is considered average and this means it is up to the lender if they want to lend to you. It also indicates the possibility of a loan default in one out of 12 cases.
Still, you still have a chance to apply for and get the best personal loans in Australia. The following options boost the prospect of loan approval.
There are many suitable choices for the best personal loans in Australia. The options to shop around include major banks, such as National Australia Bank, ANZ, CommBank, HSBC, ME and Westpac, etc. However, just because these are bigger institutions, this will not automatically make them a better choice.
You may opt for mutual banks, such as Bank Australia and Heritage bank. These were former credit unions and their loans often carry conditions based on residential and membership qualification. The slow pace of their approval is another issue.
The third option is online lenders, such as Nifty. The loan approval is fast, considerate to average credit scores and with due attention to the individuals need. You have an option to select from three categories of the best personal loans in Australia up to $5,000 with varying rates of interest and repayment terms.
If you think that Nifty Personal Loans is the best personal loans in Australia option for you, you should consider an application with us. We offer 60-minute loan approval in business hours. Once approved, you could also have your money in as little as 60 seconds*. Nifty uses cutting-edge technology that enables fast application processing. Attention to each unique situation contributes to faster loans approval.
|100% Online loan application!||Bad credit loans accepted!||Fixed interest rate loans!|
|Instant loan transfers!||Quick Approvals!||Easy Application form!|
|$300 – to $5000 loans!||Simple repayments!||Centrelink income accepted!|
As we have already stated, which personal loan will be the best for you will depend on many different factors. To wade through all these different factors can be confusing and time-consuming. Before applying for credit, it’s always a good idea to consider independent financial advice or consider using a professional broker.
*Only for NPP enabled bank accounts
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Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.Read More
$5,000 - $10,000
$2,001 - $4,600
$300 - $2,000
* Not applicable. Small loans do not charge an annual interest rate.
** WARNING: This comparison rate is 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 with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.