The great thing about Personal Loans is the money can be used for just about any purpose you like.
Whether you need the money for a medical emergency, want to get married to the love of your life, or take that exotic overseas holiday you’ve always dreamed of, a Personal Loan can make it happen.
It’s not just a matter of picking a finance company at random and applying though. You want to choose the right lender and that’s what this post will help you do.
Check out the following top tips to find the right Personal Loan lender in Australia for you.
How Much Money Do You Need?
The answer to this question could determine which financial institution you choose; whether a bank is more likely the best option, or whether you should seek out private money lenders for Personal Loans.
One advantage with the banks is the range of money you can borrow when you go after a Personal Loan. While each bank varies, the range is generally somewhere between $5,000 and $50,000 for this type of finance. If you need a substantial amount of money, then a bank might be an option.
On the other hand, if you’re only after a couple of thousand dollars for whatever reason, most banks won’t lend amounts this low. They’ll advise you to apply for a high-interest rate credit card instead.
For smaller borrowing limits, you are better off approaching private lenders for Personal Loans, as most of these companies offer finance in the range of $2,000 to $15,000. This can certainly vary between lenders, but that would be the average.
Keep In Mind the Fees and Interest Rates
Fees and interest rates can fluctuate wildly between lenders. One of the best ways to analyse interest rates and fees and compare them is to visit one or more comparison sites. There are quite a few in Australia and these independent sites make it quick and easy to compare what different lenders offer side by side.
Not many lenders – whether private loan lenders, banks, or building societies – will approve a loan without a loan establishment fee. Some do, but it’s quite rare. These often range from $100, even as high as several thousand dollars.
Interest rates also fluctuate on Personal Loans depending on the lender, the amount of the loan and even the individual applicant – with some lenders even rewarding an applicant’s good credit history with lower interest rates.
What you will often find is that lenders who offer lower interest rates will offset this with higher establishments fees as well as monthly account keeping fees.
How Fast Do You Need the Money?
If time isn’t a concern, then it doesn’t matter which lender you choose, so long as their terms suit your needs. On the other hand, if you need the money fast – like in the case of an emergency – then you may be better off approaching a private lender for a fast cash loan.
Private, personal lenders with fast approval can be the best option when you need money in a hurry. Often you can apply and have it approved on the same day, with the money deposited into your account by the end of the business day or with some lenders, instantly.
This is a key point to consider when you need cash fast. Banks won’t be able to come to the rescue if time is scarce. The same day loan or small Personal Loan from a private lender is your only option in this instance.
Make a Shortlist Of Lenders and Research Them
When you’ve decided which type of lender is right for your situation and needs, it’ll be time to make a shortlist and do some further research.
If you are not familiar with a company that interests you, search online for some independent recommendations, reviews, and testimonials. These will offer you an objective overview of the finance company so you can make up your mind whether to move forward with them or not.
Recommendations from family and friends can be very helpful too. If someone you know recently took out a Personal Loan, find out who the lender was and what the overall experience has been. There’s nothing like personal experience to paint the picture.
Always Read the Fine Print
Once you’ve chosen a lender, make sure to read the terms and all the fine print. You’re making a financial commitment, so you want to know exactly what you’ll be signing up for. Every lender is a little different, so never assume you know what’s being offered.
If in doubt, ask questions. It’s always better to err on the side of caution before committing to a finance contract.