RateCity provides personal loan news and features, including a range of weekly stories and industry updates. By checking our personal loan news and features regularly, you can ensure that you receive up to date, professional commentary on current financial and industry issues. Before you search, compare and apply for the right loan for you, help yourself understand the market by reading personal loan news and features at RateCity.
| Company | Product | Rate % | Go to Site |
|---|---|---|---|
 | 20% equity in RealEstate | 11.20 |  |
Easy Street Fin Services | EasyLoan Variable | 12.55 | |
 | Personal Loan | 14.49 | |
 | Variable Rate Pers Loan | 14.90 | |
 | Personal Loan | 14.99 | |
| Company | Product | Rate % | Go to Site |
|---|---|---|---|
 | Car Loan (New) | 8.90 | |
| Vehicles less than 2yrs old -30k | 8.99 | |
 | New Car Loan | 9.09 | |
 | goGreen CarLn NewG/hse6+ | 9.49 | |
 | New Car Loan Fixed | 9.99 | |
Personal Loan News & Features |
27th May 2010
Don't get caught with the wrong business loan
RateCity shows you the warning signs and how to avoid being tied to the wrong type of business loan for your enterprise. Here are some examples of sticky situation to avoid, which can help you choose the...
27th May 2010
Why are business loans harder to get?
Why do some small-to medium-sized businesses find it more difficult to get a loan? RateCity shows you the tricks to business loans and tips on how to pay your business loan off sooner. If you are thinking...
27th May 2010
Can your business benefit from a loan?
Starting a business? Or just need some extra cash to grow? RateCity shows you how to choose the right business loan for you. Whether you currently run a successful small business that requires new equipment...
8th February 2010
Personal loans put you back in the black
If you’re battling an escalating credit card bill, a personal loan could provide a low cost solution. A low-interest balance transfer may sound like an appealing option but a personal loan could...
8th February 2010
Confident consumers prefer personal loans
Personal loans are on the rise, as Australia’s economy steadies toward a full recovery. However, major banks are the ones enjoying the fruits of consumer confidence, while the rest are left with more...
25th February 2009
Shop around for the best personal loan
Savvy borrowers thinking about using current low interest rates to shop for a new loan or refinance old debts will need to do their homework to find the best personal loan deals.Personal loans still...
10th February 2009
Can’t Buy Me Love - Loans and relationships
What to do when the bills, credit cards, personal loans get in the way of your relationship - a Valentine’s Day guide to financial and relationship bliss. You love the same music and movies, share...
14th January 2009
Second-hand smarts: Tips for buying a used car
Used cars can be a financial blessing or a beast of burden if a personal loan is taken out for a dodgy deal. But insurance companies like the National Roads and Motorists’ Authority (NRMA) and...
23rd September 2008
Five Minute Guide to Personal Loans
A personal loan is a loan from the bank that can be taken out for any number of reasons - paying for an upcoming holiday, buying a new car, or even to cover education fees; it is simply for ’personal’...
11th August 2008
Aussies win gold at Debt Olympics
1st July 2008
Avoid the interest-free rip off
13th March 2008
Bathroom bliss: how to pay for those renovations
17th January 2008
Debt detox: 5 tips to a clean bill of wealth
1st August 2007
Personal Loans vs. Credit Cards
Hints & Tips
Make sense of it all with these Personal Loan hints & tips.
Personal loans offer the general advantages of being cheaper than the closest alternative (credit cards) and providing the discipline of a repayment schedule.
Personal Loan minimum repayments
As explained before, personal loans have a set repayment schedule. Many personal loans however allow the borrower to make extra repayments. Every dollar you repay above the required repayment shortens the life of the loan as well as the overall cost. Table 1 and Chart 1 both show the effect of making regular extra repayments on a $10,000 personal loan.TABLE 1
CHART 1
Questions to ask your lender
- What is the interest rate?
- How can I qualify for a lower rate?
- Are there any application or ongoing fees?
- Is the interest rate Fixed or Variable?
- Can I get pre-approval for the loan?
- How long does pre-approval last?
- Can I make extra repayments or Lump Sum Repayments?
- Is there a penalty for paying off the loan early?
- How can I check how much I have owing?
- How can I make my repayments?
Should you get a secured or unsecured loan?
Personal loans can either be secured or unsecured. A loan can be secured by a bill of sale or lien over an asset like a term deposit. Secured loans are usually cheaper than unsecured loans because the lender has the right to claim the asset used as security in the event that you default on the loan.Unsecured loans on the other hand are collateral free and are therefore more expensive. Since the lender has no security in the event of a default the loan is usually perceived to be more risky.
Should you get a fixed or variable loan?
Advantages of a fixed rate
- Having a fixed rate loan guarantees that your repayments will stay the same for the fixed period.
- This means that your loan is insulated from interest rate movements by the Reserve Bank.
- Having stable repayments means you can prepare a more reliable personal budget for the long term.
- One of the drawbacks of fixing your loan is that you might have restrictions of how much extra repayments you can make. Not being able to make extra repayments means you cant pay off the debt early.
- If you wish to pay off the loan early you might have to pay an early repayment penalty.
- Fixed rate loans might be less desirable during periods of falling interest rates especially if variable rates fall below the fixed rate leaving you stuck with higher repayments.
Advantages of a variable rate
- Variable interest rate loans move with the Reserve Bank Interest rate movements. If the Reserve Bank lowers interest rates, you can expect the required repayments of your variable rate loan to decrease as well.
- Variable rate loans are more flexible and allow extra repayments. They may also allow early repayment without penalties.
- Consistenly making additional repayments will shorten the life and therefore the overall cost of the loan.
- Variable interest rate loans move with the Reserve Bank Interest rate movements. If the Reserve Bank increases interest rates, you can expect the required repayments of your variable rate loan to increase as well.
- Not having repayments that are set for an extended period can make it difficult for borrowers to budget their repayments.