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Western Australia personal loans

Whether you’re planning a wedding down in the Margaret River, want to take the family on a holiday from Perth to Broome or are considering home improvements in Fremantle, there are a lot of reasons to consider a personal loan in Western Australia.

There are a range of personal loan lenders offering financing options for Western Australians that may help you kick your goals, big or small. But it may be worth comparing your options and shopping around before you begin the application process to ensure you’re getting the best personal loan deal to suit your financial needs.

What types of personal loans are available?

When it comes to personal loans, there’s no one size fits all approach. You may seek short-term financing (1-4 years) or look at longer loan term options (5-10 years), depending on your financial situation. Keep in mind that the longer you're making loan repayments on a personal loan, the higher the cost overall.

There are a range of personal loan types you may apply for, including:

A personal loan provider may not reject your loan application based on the purpose of your loan, but these are the most common types of personal loans that Aussies apply for.

How to compare Western Australian personal loans?

Now you know the type of personal loan you’re looking for, it’s time to compare your options to find the best personal loan for your needs and budget.

Many Australians will assume that the most important part of a personal loan is finding one with a lower interest rate. However, while interest rates play an important role, there’s a lot more to a personal loan than the rate you’re offered.

Here are some factors and features to take into consideration when searching for your WA personal loan:

Interest rateThe rate of interest that will be charged on top of the personal loan amount, and it can significantly impact the overall cost of the loan. Keep in mind that a low rate doesn’t necessarily mean cheaper, as sometimes low-rate personal loans can come with high ongoing fees. And personal loans with higher rates may have fewer fees, meaning it may cost a borrower less over time.
Comparison rateA rate that factors in not only the interest rate but the majority of upfront fees and ongoing fees that add to the cost of the loan overall. Comparison rates may offer a more comprehensive way to compare personal loans.
FeesA personal loan provider may charge a range of fees, including upfront establishment fees, monthly fees, annual fees and even early repayment fees charged for making extra repayments.
Interest rate typeChoose from a fixed rate personal loan, in which you lock in an interest rate for a set period of time (typically 2-5 years, or a variable rate personal loan, which may fluctuate with market conditions.
Secured or unsecuredA secured loan involves securing the loan against collateral or an asset, such as a car or even artwork. This loan type may come with lower interest rates as a lender may view offering credit to a borrower as less risky if there’s an asset attached, such as with a home loan.

An unsecured personal loan is not secured to an asset, and may therefore incur higher interest rates, but has the added benefit of no risk a lender may seize an asset if you cannot pay back the loan.

Repayment frequencyChoose from weekly, fortnightly or monthly repayments on your personal loan, based on your budget and financial needs. Use a personal loan calculator to see how different repayment frequencies may suit your budget.

How do I get approved for a personal loan in Western Australia?

As with any credit product application, you’ll still need to meet strict lending criteria, including:

  1. Being 18-years or older
  2. Being an Australian citizen or permanent resident
  3. Meeting minimum income requirements
  4. Being employed in one role for a minimum amount of time
  5. Having a good to excellent credit score

If you’re struggling to get a personal loan due to bad credit or a short, or no, credit history, you may want to consider bolstering your application. This may involve having close family or a friend come onto the personal loan as a guarantor, or in a joint application.

Keep in mind that mixing money with relationships can be tricky and create added financial stress if you were not able to service the loan, so consider your options carefully before making any decisions.

Frequently asked questions

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

Is a personal loan a variable or fixed-rate loan?

Depending on the personal loan lender, you may be able to choose between a fixed and a variable interest rate. But, there are a few distinct differences between the two, so it’s important to weigh up the pros and cons before deciding on what’s right for you.

A fixed interest rate loan gets you the convenience of knowing exactly how much you need to repay each fortnight or month. On the other hand, you generally won’t be able to make lump sum or advanced payments to close your personal loan early - or at least not without a penalty.

With a variable interest rate personal loan, you may be able to get a longer loan repayment term, with the option of paying off the loan early. You typically won’t need to pay any additional charges for an early full repayment either. The potential disadvantage with an interest rate that can change is that your repayment is not entirely predictable, as it can fluctuate with the market. However, you’ll likely have more options as more lenders offer a variable interest rate personal loan.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

Can I merge my personal loan with my home loan?

Yes, you can refinance your home loan and, in the process, merge or consolidate your personal loan and home loan. By doing so, you can lower the number of debts you have, and you may also reduce the total interest you have to pay.

However, you should consult a financial advisor or a mortgage broker to confirm that you are decreasing your total outstanding debt, including interest payments. The repayment term for a home loan can be much longer than that for a personal loan, and by merging the two, you could be repaying a higher amount over the full term.

How long does it take to get a student personal loan?

Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.

How much can you borrow with a bad credit personal loan?

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.

Does refinancing a personal loan hurt your credit score?

Personal loan refinancing means taking out a new loan with more desirable terms in order to access a more competitive interest rate, longer loan term, better features, or even to consolidate debts.

In some situations, refinancing a personal loan can improve your credit score, while in others, it may have a negative impact. If you refinance multiple loans by consolidating these into one loan, it could improve your credit score as you’ll have only one outstanding debt liability. Your credit may also improve if you consistently pay the instalments on time.

However, applying to refinance with multiple lenders could negatively affect your credit if your applications are rejected. Also, if you delay or default the repayment, your credit score reduces.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

Are there low doc personal loans?

Self-employed borrowers may be eligible for low doc personal loans, which require less documentation in their application process than many other personal loan options.

It’s important to remember that though low doc personal loans may require less paperwork, you may need to provide additional security, or pay a higher interest rate.

Can unemployed single parents get personal loans?

It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.

If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

Can I get a bad credit personal loan with a guarantor?

Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.

What causes bad credit history?

Bad credit history is caused by filing for bankruptcy, defaulting on your debts, falling behind on your repayments and having loan applications rejected. Lenders are wary of borrowers who demonstrate this sort of behaviour because it suggests they might struggle to repay future loans.

Borrowers with bad credit may find it more difficult to be approved for a loan, or they may get higher interest rates when they do get approved.

Which lenders offer bad credit personal loans?

Several dozen lenders offer bad credit personal loans in Australia. These are generally smaller lenders that aren’t household names.

What is an unsecured bad credit personal loan?

A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset, such as a car or jewellery, as collateral or security. Lenders generally charge higher interest rates on unsecured loans than secured loans.

What is a secured bad credit personal loan?

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.

How do you get a bad credit personal loan?

You can get a bad credit personal loan by applying directly to a lender, by going through a mortgage broker or by using a comparison website like RateCity.