When it comes to shopping around for a Personal Loan, Australia has many different lenders offering up a multitude of options. With so many choices, it can get confusing. Which Personal Loan is right for your needs? Who is the best lender to approach and apply for a Personal Loan?
There can be a lot of questions to be answered before you apply, so in this post, we’ll take a look at some things to keep in mind when trying to decide which Personal Loan is right for you.
1 – First Things First… Do You Qualify?
Every lender will have their own set of criteria that applicants need to fulfil in order to be eligible to apply. While most of the criteria will be the same for every lender, there may be requirements with one lender that aren’t necessary to have with another lender. For example, some lenders have a minimum income or employment status to be able to apply.
Most of this information is usually clearly visible on the lender’s website, so it’s important to determine if you first qualify for a Personal Loan before applying with a particular lender. If not, search for a lender that has a list of criteria you do qualify with.
2 – Check For Hidden Fees and Charges
It can be tedious, but you really need to read the fine print before filling out an application. Some lenders are very transparent regarding everything they charge. Others only advertise the interest rate and perhaps the loan establishment fee. You often have to dig deeper to discover any other charges.
Often there are monthly loan administration fees, or penalties for repaying a Personal Loan early. You want to be aware of all fees and charges before committing to financing. Patience and diligence in this area are important. With Personal Loan providers, always read the fine print. If you’re unsure, you can always ask the lender to clarify.
3 – How Long Before An Application Is Approved?
If you’re not in any rush to get the money you need, then this probably won’t be an issue, but if you don’t want to be waiting weeks for a decision on your application, you’ll want to search for a lender that promises speedy processing and approval processes. Usually, these lenders will be in the private lending sector.
Some private lenders offer Personal Loans, same day cash deals, or what are often known as instant personal loans. If you need cash fast, perhaps for an emergency, then seek out a private lender offering same day loans, or loans that are approved within a few days.
4 – Work Out Your Borrowing Power
Many lender websites will have a handy calculator where you can input some basic information and determine your borrowing power. You’ll just need to insert how much you want to borrow, for how long and how often you’d like to make repayments. It will then estimate your repayments so you can ensure you’re able to meet these repayments before you apply. This is not an indication that your application for a Personal Loan would be approved, but rather just a general guide so you get an idea.
5 – Does the Minimum/Maximum Match Your Requirements?
If you only wish to borrow $500 or $1,000, then you can easily rule out lenders who only offer a minimum of $5,000. Likewise, if you need to borrow a large sum, you’ll first need to check whether the lender offers Personal Loans within that range.
Lenders can vary quite a lot when it comes to minimums and maximums, so this is something you definitely have to verify.
6 – Do the Terms Suit Your Personal Circumstances?
If paying back a Personal Loan on short terms would leave you struggling financially, then you’ll want to choose a Personal Loan that offers longer repayment terms.Depending on the amount you’d like to borrow, banks and some private lenders will generally offer a loan term of up to 7 years to help you better budget your repayments.
Alternatively, if you want to erase your debt as soon as possible, borrow on shorter terms. It’ll also save you money on the amount of interest you pay over the life of the loan.
7 – Compare Personal Loans on Comparison Websites
As a starting point, Personal Loan comparison websites can be an easy way to see what lenders are offering at a glance. You’ll be able to check current interest rates, loan establishment fees and more. These websites can save you a lot of time. But remember, not all lenders will be listed on these sites, so it is best to continue your research online.
It’s worth taking the time to shop around for the right Personal Loan deal for you. Don’t rush out and submit an application. Think about what you want and need first.