Personal loans are in great demand by the Aussie public – just look at the figures.
This year, August saw $391 million worth of loans for personal investment (which doesn’t include property!) get approved – the highest that figure has been since way back in the middle of 2015.
If you’re one of the thousands of Aussies looking at taking on a personal loan this year, here’s 3 ways you can get the best deal for the buck.
1 – Understand your credit score
Your credit score is a number that reflects how good you are at managing debts.
When you apply for any type of finance (whether it’s a mobile phone contract or a personal loan), your credit score will move up or down, depending on how well you manage your repayments.
Lenders use your credit score to make a quick assessment of how likely you are to repay your loan without any issues. The lower your score, the more potential issues they might see.
Your credit score also influences things like your interest rate or the amount you might be approved to borrow.You can learn more about credit scores here.
2 – Do your research online
A little goes a long way when it comes to researching personal loans. Before you commit to a lender offering a flashy deal, you’ll want to see who you’ll be dealing with, and how they really treat their customers.
Search for reviews of your potential lenders and see how they compare – look for impartial and independent review sites and avoid anything that looks like spam.
In general, most online lenders in Australia have great reviews, so your task is to find the best personal loan lender that matches your needs.
3 – Shop around and compare
Just as you don’t want to get swept away by the first lender you see, getting the best match for your personal loan means taking a breath before diving in.
You’ll want to look for the major factors first, like interest rates, fees, and how long you’ll borrow the money for – this determines how much you’ll pay over time and in total.
Then, you’ll want to consider your repayment options, the flexibility in making extra payments, and finding a loan with low (or no) charges for closing out your loan early – as believe it or not, a lot of people pay their loan off early.
If you need assistance, you can always speak to a financial advisor to help decide which personal loan is best.