Best variable, fixed, secured and unsecured personal loans*
The ability to find the best personal loans* that you can acquire, comes down to what best suits your borrowing purpose at the lowest interest rate and most flexible term that you can find. Personal loans can be used for a wide range of purchases including holidays, renovations, weddings or even a car. You borrow a set amount of money over time and pay it back with interest over this period. You can apply for a fixed rate or variable rate personal loan.
Personal Loan Comparison
Things to consider when comparing personal loans
There are many varying factors you must consider when comparing the best personal loan for you. You should take into consideration
- Interest rates -The interest rate will determine how much extra you have to pay back to the bank. Our personal loan calculator will help you work out your repayments
- Loan term - Personal loans generally range in length from 2 years to 7 years. Depending on how long your loan is for will determine your monthly repayments.
- Fees - Each lending institution will have their own fees and charges for taking out a loan. Make sure you compare the rates from each lender before applying.
- Secured or unsecured - A secured personal loan is generally tied to an asset - so if you don't pay your loan, the asset is repossessed.
Types of best personal loans*
Credit cards. Yes, credit cards can be the best personal loans* and they are definitely the most popular because of their ease of access. A credit card is good if you can pay off the debt regularly and withing the interest free period each month. If you fail to do this the interest on the debt can become crippling.
Best personal loans, secured or unsecured.*
A genuine personal loan is usually cheaper than a credit card as far as interest is concerned. Especially if you are unable to pay your credit card debt within the interest free period. In this manner a bank, credit union, building society or other financial institution supported personal loan is the best personal loan to acquire as it has to be negotiated separately for each purpose, which means more stringent credit control. Personal loans can be secured or non-secured. This means that many personal loans, especially those used for purchasing cars, have the amount of money loaned secured against the value of the car. Other personal loans are not secured. In order to obtain one of these loans the lender will take into account:
- Your employment stability.
- Your ability to repay.
- Your credit history.
The difference between the two will be fees and interest. The cheaper loan being the personal loan with the less risk to the lender.
It has become more common for lenders to offer unsecured personal loans for smaller loans because of the cost incurred in repossession. It is often more profitable for a lender to write off a smaller bad debt rather than pursue it and recoup their lost money through increased interest and fee charges. This approach often suits the borrower as well, as he or she becomes the sole owner of the product purchased and can re-sell it without having to refer his or her intention to the lender for permission to do so. The extra interest and fees charged are often willingly paid to obtain this flexibility.
If you intend to make a major purchase or borrow for a holiday it will turn out to be cheaper to obtain a personal loan rather than simply use your credit card. Some lenders have no set minimum amount to borrow but most loans are written from $2,000 upwards with a maximum repayment term up to 10 years.
When borrowing you should all the time keep the following points in mind
- You must always be able to remain in control of your debts. It is financially deadly to allow your debts to control your life. Never over borrow!
- Remain budget conscious and make allowances for your loan repayments before you spend further.
- Always borrow from a well known and reputable lender.
- Be satisfied that borrowing is the best way to obtain the product or service you desire. If there is another way e.g. lay-by or savings, then take that avenue in preference every time
* The personal loans compared on this page are chosen from a range of personal loans PersonalLoanFinder.com.au has access to track details from. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing personal loans.
I am on the disability support pension and have been for a few years after a car accident, I receive $800 per fortnight and have all my bills direct debited from my pay. I have a few medical bills which need paying immediately. I don’t have any security besides a $5,000 Dell computer which I won last year. My financial situation is very secure as I will always be on this pension. Is there anyone who will lend me $500 or more, not a payday loan?
Hello Julie,
thanks for the question.
There are a few options which might be of use, including the No Interest Loan Scheme or a Centrelink Advance Payment. For more information regarding these it may be useful to call Centrelink. There are some other options available, so it could be useful to view our page explaining pensioner loans.
Cheers,
Marc.
I have a couple of loans and a credit card i want to consolidate. The amount is around $38000. I want to repay at around $500 a month. Is that possible? Extending the length of the loan is an option. I meet all requirements of a loan in terms of full time work, salary etc.
Waiting for a response.
Thank you
Hi Rick. You will need to call one of the lenders or a finance broker if you wish to discuss your options for a question as specific as yours. Our service is simply to display the loan products on offer.
All the best.
Ive got 4 credit cards that i am paying off at a grand total owing at $17,300. I friend suggested i get a personal loan to pay the amount out right and then pay the loan off – what do advise and any advice you may be able to give?
Thank you.
Hi David,
There are plenty of options, I’ll give you three:
1. Consider consolidating the credit cards into a personal loan. Adjust the loan term to an amount that makes the repayment affordable. Use our personal loan calculator to see what your repayments might be.
2. Consider doing a balance transfer. This is suited to people with good credit records, as, when a low-interest balance transfer offer is nearing the end, someone with a good record can apply for another balance transfer card and change the balance again to a low-interest card.
3. Consider paying off the highest interest credit card debt first. Only make purchases (if at all) on the lowest interest credit card.
I hope this gives helps, Adrian.
I have a debt with State Debt Recovery and I was just wondering if I was able to get a loan and then pay the debt off and purchase myself a car. Then I’ll be paying off a loan and try to get myself a good credit rating at the same time?
Hello Jacob,
thanks for the question.
Whether you’re approved for a loan to pay a debt off or not will depend on the individual lending criteria for each lender. These criteria can include an applicant’s credit history, debts they already have, assets and other factors. In terms of paying off an existing debt with a personal loan, this is possible with the majority of loans on the market.
I hope this helps,
Marc.
Is there any one out there that can help with a loan for a self employed person (new business) who is on a carer payment (partner on Disability) for cash flow?? our pension seems to be the stopper??
Need Help desperately.
Hello Diana,
thanks for the question!
There are a number of options available for pensioners including Centrelink cash advances, the No Interest Loan Scheme and others. It may be helpful to read this page, as it goes into more detail about what’s available.
I hope this helps,
Marc.