Can I get a personal loan if I work part-time?

Can I get a personal loan if I work part-time?

Are you working part-time while juggling different responsibilities, and still trying to get ahead? We get it. Even though you might need to provide extra reassurance that you can make repayments as a part-time worker, there’s still a good chance you will be eligible for a personal loan.

Before you apply for a personal loan, ask yourself these questions:

  • Can you prove you’ve been consistently employed for a considerable amount of time? You may need to show pay slips and a letter from your employer.
  • Does your income exceed the minimum income criteria? To be eligible for a Plenti car loan, you must earn over $25,000 per year from a provable, regular source of income.
  • Can you show proof of savings? If lenders can see that you’re capable of setting aside money for loan repayments, they’re more likely to view you as a trustworthy borrower.

Improve your chances

If you work part-time, lenders will look at your credit score, employment history, income, expenses and other debts to determine whether you have the ability to make repayments. Check out these 3 things you can do to improve your chances of qualifying for a personal loan:

  • Select a less expensive purchase so you can borrow a smaller amount
  • Save for a deposit so you can borrow a smaller amount
  • Check and improve your credit score

Your credit score is a number that sums up the information on your credit report. It takes into account information like the number of credit applications you’ve made and the amount of money you’ve borrowed. It also notes your history of repaying debts on time. Basically, it tells the lender whether or not you’re a trustworthy borrower. 

If you have a low credit score, you could be stung with higher interest rates so it may be worth working on improving your score before you apply for a personal loan. You can do this by:

  • Paying your rent, mortgage and utility bills on time
  • Making credit card repayments on time and paying more than the minimum repayment
  • Lowering your credit card limit
  • Limiting how many applications you make for credit 

All of these things will help your credit score to improve over time, giving you a greater chance of being approved for a personal loan and securing a competitive interest rate.

Don’t lose heart

If you are not approved for a personal loan, there are other options available. You could apply for a secured personal loan, instead of a car loan. With a secured personal loan, the lender uses the car that you purchase as security against the loan. This means if you can’t make repayments down the track, the lender can repossess the car to cover the costs of the loan. 

Alternatively, you could apply for a guarantor personal loan, where you have a family member or friend co-sign the loan and agree to accept responsibility for the repayments if you default for any reason. Having a guarantor on your personal loan might improve your chances of being approved because your guarantor acts as a type of security, making it less risky for your lender to loan you the funds. 

You might also be able to secure a lower interest rate if you have a guarantor on your personal loan, which means you’ll save money over the life of the loan.

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