Can I get a personal loan if I am 18?
No credit history? No problem!
Will I be approved?
- Have a secure job with a regular income (it doesn’t need to be full-time).
- Make sure your income is high enough to easily meet the repayments for the loan you want.
- Show that you save money from your income each month.
- Make sure there’s no history of late payments on your bills (this includes Afterpay).
- Save for a deposit in a high-interest savings account.
Proof of life
- 100 points of ID. For example, your driver’s license, passport, Medicare card, etc.
- Proof of residence, such as council rates or a utility bill, etc.
- Proof of income, such as recent payslips, current bank statements and a letter from your employer stating your employment details.
- Assets, including property or other vehicles that you own.
- Liabilities, including any other debts or loans in your name, such as credit cards.
- Contact details for people who can authenticate these details, such as your employer, landlord or accountant.
- The loan amount
- The interest rate
- The repayment period
- Additional fees such as establishment, upfront late payment, account keeping, early exit and monthly administration fees
Banks and credit unions
Fixed or variable interest rate?
Fixed Interest Rate
- You know exactly how much your repayments are each month.
- You can plan and budget with certainty, knowing your repayments won’t change.
- You’re protected from future interest rate rises.
- If the market interest rate falls, you pay more interest with a fixed rate.
- Some lenders may insist upon a shorter lending period.
- Fixed rate personal loans may not have a redraw facility.
- If you want to pay back your loan early, you could be stung with a higher early repayment fee. But remember, Plenti will never charge you fees or penalties for paying your loan back early.
Variable Interest Rate
- If the market rate drops, you could pay less for your car loan overall.
- Most lenders offer longer repayment terms with a variable interest rate.
- You may have the option to make additional repayments which could save you money over the life of your loan.
- You may be able to redraw from any additional repayments you have made if you need some extra cash along the way.
- If the market rate rises your repayments increase.
- Interest rate rises are unpredictable and could make it harder to budget and make plans for the future.