RACQ was formed in 1905 as a Queensland-based club for motorists. It was originally called the Automobile Club of Queensland and designed to advocate the rights of drivers. As it evolved, it began to offer a range of products to members, including car loans and personal loans.
RACQ has a number of branches in areas of Queensland. Customers who don’t live near a branch can contact the lender by phone and online seven days a week.
RACQ Bank personal loan repayment calculator
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RACQ Bank personal loans rates
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Personal Loan Special
based on $30,000 loan amount for 5 years
Fully drawn advance
- Online application
- No early pay-out fee
- Flexible payment options
- Application fee charged
- No redraw facility
- Limited branch access
How to Apply
RACQ personal loans – customer service
Customers looking to contact RACQ customer service can do so via the 24/7 call centre, through an online enquiry form or pop into a branch in Queensland. Borrowers can also contact customer service via:
- Online enquiry
Features of an RACQ personal loan
RACQ offers fixed- rate personal loans to its members and borrowers who wish to become members. Its loan terms range from one to seven years. RACQ will consider most personal loan amounts, provided the purpose is worthwhile – such as the purchase of a new or used car, caravan or motorcycle, a home renovation or debt consolidation.
Some of the main features of an RACQ personal loan include no account-keeping fees, flexible repayment options – including the choice to make extra repayments and make payments fortnightly or monthly – and discounts on various items, such as theme parks and movie tickets.
RACQ personal loans can be used for a range of different purposes including:
- Student loans
- Debt consolidation
- Medical bills
Who is eligible for an RACQ personal loan?
To be eligible for an RACQ personal loan, you’ll need to meet the following criteria:
- Be at least 18 years old
- Be an Australian citizen, permanent resident or have a valid visa
- Have a regular income
- Have the capacity to meet the loan repayments
How to apply for an RACQ personal loan?
To apply for an RACQ personal, borrowers can apply online through the RACQ website. The application process takes around 10 minutes and involves the following steps:
- Once you’ve compared and selected a personal loan, you can get the application started through the RACQ website
- Once you’ve submitted your application, RACQ will review your application and reply within one business day
- If your application is approved, RACQ will send over some paperwork for you to complete and send back
- Upon final approval, the funds will be credited to your loan account
At the time of application, you’ll need to provide the following documentation:
- Proof of identity
- Proof of income and employment (including payslips)
- Details of any other financial commitments
RACQ personal loans review
RACQ personal loans may appeal to borrowers who are already members, or would like to become a member, of RACQ. Borrowers may be attracted to the flexible repayment options as well as the lack of ongoing fees. However, the interest rates vary based on the borrower’s profile, so before committing to an RACQ loan, it’s worth speaking to the lender about whether you’re a candidate for a lower rate.
RACQ personal loans can be used for a variety of purposes, like weddings, cars, caravans, boats, refinancing and debt consolidation.
While the interest rate is on the high side, borrowers can make unlimited additional repayments with no fees and can choose to pay out the loan early without penalty.
RACQ has a number of branches in areas of Queensland. Borrowers who don’t live near a branch can contact the lender by phone and online seven days a week.
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In the best-case scenario, an application for a bad credit personal loan can be made within minutes and then be approved within 24 hours. However, if a lender needs more information or needs more time to verify the provided documents, the application process may take longer.
The worse your credit history, the harder you will find it to consolidate your debts, because lenders will be less willing to lend you money and will charge you higher interest rates.
However, people with bad credit histories can make debt consolidation work by following this three-step process:
- First, find a lender willing to give you a bad credit personal loan. This process will be simplified if you go through a finance broker or use a comparison website like RateCity.
- Second, make sure the interest repayments on your new loan are less than the repayments on the loans being replaced.
- Third, instead of spending those savings, use them to pay off the new loan.
Lenders aren’t allowed to charge interest on loans of $2,000 and under. Instead, they make their money by charging a one-off establishment fee of up to 20 per cent and a monthly account-keeping fee of up to four per cent. Lenders might also ask you to pay a government fee.
For loans between $2,001 and $5,000, lenders can make their money in only two ways: a one-off fee of $400 and annual interest rates of up to 48 per cent.
For loans of $5,001 and above, or for loans that have terms longer than two years, lenders can charge annual interest rates of up to 48 per cent.
Those fee caps don’t apply to loans offered by authorised deposit-taking institutions such as banks, building societies or credit unions, although such institutions are highly unlikely to charge interest rates of anywhere near 48 per cent.
A bad credit personal loan is 'secured' when the borrower offers up an asset, such as a car or jewellery, as collateral or security. If the borrower fails to repay the loan, the lender can then seize the asset to recoup its losses.
Some lenders are able to approve applications with little documentation and within minutes. However, there is a catch. People who take out easy/instant loans generally pay higher interest rates and are restricted to lower amounts than people who follow a traditional borrowing process.
Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application.
It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid.
So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.
In some instances, bad credit personal loans can help people with bad credit history to consolidate their debts, which can help make it easier for them to clear those debts. This is because the borrower might be able to consolidate several debts with higher interest rates (such as credit card loans) into one single debt with a lower interest rate and potentially fewer fees.
However, this strategy can backfire if the borrower spends the loaned funds instead of using it to repay the new loan. Another disadvantage of bad credit personal loans is that they have higher interest rates than regular personal loans.
Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.
The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:
- The big four banks (ANZ, Commonwealth Bank, NAB and Westpac)
- Smaller banks (such as Bank of Queensland, Bendigo Bank and MyState)
- Mutual banks (such as Heritage Bank, Greater Bank and Newcastle Permanent)
- Credit unions (such as People’s Choice Credit Union, BCU and Community First Credit Union)
- Non-bank lenders (such as Pepper Money, Liberty and RACV)
- Peer-to-peer marketplaces (such as Harmoney, SocietyOne and RateSetter)
There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.
It’s unusual for a lender to provide a personal loan of above $100,000, although there is no formal limit. As with all lending products, each lender sets its own policies, while each borrower is assessed on a case-by-case basis.