LOANS

There are many different products on the loan market in Australia and around the world and finding the right loan for your needs can be difficult. So what are the differences between Unsecured and Secured Loans, Payday Loans and Debt Consolidation Loans and how do we get a loan? What about Bad Credit Loans or IVAs? Read our Loans guide below or if you know what type of loan you need, just click on the links below to view our Loans comparisons and start to learn about how to get a loan.

Payday Loans

A Payday Loan> is sometimes referred to as a fast cash loan or a cash advance. Essentially, this is a short-term loan for small amounts (typically between $100 and $600), loaned to you until your next payday. Payday loans provide a convenient and quick way to access cash and in most cases the lender will approve cash advances even for applicants with black marks on their credit history making it much easier for people to get a loan. They may carry out credit checks but in some cases these do not apply.

Generally, you will need to earn over a certain amount (this varies but sometimes it is $400 per week net is required) and prove this via your payroll. You will also need to be a full Australian resident and prove this to get a loan. Application for a payday loan are easy and fast online.

Payday Loans
View all Payday Loans here.

Bad Credit Loans

A Bad Credit Loan is designed for you if you have a bad credit history. That means that even if you have been blacklisted or have defaults you will most likely have your application considered by the Bad Credit Loan lender. The easiest way to find a Bad Credit Loan is via a specialist loans broker. They take your information, your requirements and how much you can afford to borrow and find suitable lenders on your behalf. Bad Credit Loans encompass a wide range of loan types, including unsecured and secured loans.

So, if you have been refused a loan using traditional methods, don't give up: compare the market of bad credit loan offers – you will probably find that there is a lender out there whose loans do suit your needs and you will find it easier to get a loan.

Bad Credit Loans
View all Bad Credit Loans here.

Car Loans

Buying a car is the second-most expensive purchase that a normal Australian is ever likely to make. It might be exciting as a prospect but not surprisingly the large majority of people don't have the money for a car in cash. Therefore it is important to remember that when it comes to making the purchase, you take your time and make sure you get a good deal.

Most car dealers offer a financing package – but in most cases they carry sky-high interest rates. An independent car loan company could be able to offer a much more competitive deal than the car dealer or the bank.

Lots of banks won't even consider applications from people who don't have a perfect financial track record or the same (full-time) employer for at least two years. Car loan companies now offer a wide range of loan types so all borrowers can find a loan which suits them. Before you finalize your car deal, make sure to check your level of insurance and whether you are getting the best for your money!

Car Loans
View all Car Loans here.

Home Loans

Buying a home is the biggest purchase the average Australian is ever likely to make. Not surprisingly, very few people can afford to buy a house in one payment without a loan, so finding a good home loan (or mortgage) becomes an essential part of the process. Whether you choose to look for a loan directly or go via a mortgage broker, there are many loans to choose from. These days, even though banks are getting tougher on borrowers there are still loans available to people who don’t have an excellent credit rating.

A home loan is a secured loan, meaning that your home is used as collateral. As this means you risk losing your home if you are unable to meet repayments, it is important to consider your payment plans, affordability and financial outlook for the coming years. Most home loans last up to 25 years so they are a big commitment for any person.

Home Loans
View all Home Loans here.

Consolidation Loans

Many people find themselves in debt thanks to a variety of reasons – including unpaid credit cards, bank loans and other creditors. They all carry their own interest rates and terms, making the situation hard to keep track of. A Consolidation Loan allows the person in debt to pay off these debts via one monthly payment. In other words, all the debts are consolidated into one place and one loan making the situation much more manageable. The interest rate on a Consolidation Loan will be far lower than if you continue to try and juggle various debts.

Consolidation Loans
View all Consolidation Loans here.

Unsecured Loans

Unsecured loans are also known as a Personal Loans. It provides a less risky way to borrow than a Secured Loan because the borrower needn't put up a valuable asset (such as their home) as collateral to receive the loan.

An Unsecured Loan is generally supported by the borrower's credit history rather than his or her assets.

You can usually borrow any amount between around $1,000 and $25,000 with an Unsecured Loan. The borrower may often choose his or her preferred repayment periods but in most cases this is around 5 years or less.

So which loan is best for you?

There are a number of ways to choose the right loan and the easiest is by comparing APR (Annual Percentage Rate). This is a good place to start. You should also consider where the loan is fixed rate (i.e. the interest rate stays the same throughout the loan period) or a variable rate – meaning it could rise or fall with changes to the central bank base rate.

Do I need a good credit rating to get an Unsecured Loan?

Generally, the lender will look at your credit file when deciding whether to approve your loan application. That does not mean that people with a bad credit rating cannot get an unsecured loan. However, the credit rating you have is likely to affect the interest rate on the loan.

Unsecured Loans
View all Unsecured Loans here.

Secured Loans

A Secured Loan is a loan in which the individual borrower pledges a tangible asset such as a property or a car as collateral against a loan. The borrower will usually get a favourable rate of credit as well as be able to borrow a larger amount than on a normal Unsecured loan. This is because the lender has the legal option of taking the asset if the loan is not repaid. So the lender has security on the loan and therefore gains less risk.

Why should you consider a secured loan with this risk?

Generally there are three reasons a borrower would opt for Secured Loans:

It is easier to gain because the lender has security on the loan.
The borrower can borrow a larger amount of money.
The loan can be repaid over a longer period (up to 20 years, although a longer term increases total interest.

The loan can generally be used for any purpose, including paying all your other debts so that payments are in one manageable outgoing and with a more favourable interest rate.

Please remember though: THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR LOAN.

Secured Loans
View all Secured Loans here.

Mortgages

Mortgages are often referred to simply as home loans. There are many different types of mortgage products and home loans available in Australia. These include Standard Variable Rate Home Loan, Fixed Rate Home Loan, Non Conforming Loans and Reverse Mortgages. There are many more, and each one carries particular features which may or may not suit you.

Standard Variable Rate Home Loan

This is one of the most commonly offered home loans offered by lenders. The interest rate is variable – that means it moves in line with market movement and can either go up or down over the loan term. A Standard Variable Rate Home Loan generally last around 25 years.

Fixed Rate Home Loan

Here the interest rate is fixed and does not increase or decrease within the fixed rate period. This means that you enter a contract with the lender that the rate will not change throughout the term of the loan – no matter what happens within the Australian or world economy. This type of loan generally lasts between 1 to 5 years.

Non Conforming Loans

These are ideal for people who have a low or impaired credit history. Usually, this loan involves a risk assessment after which the lender decides what interest rate is charged. As the risk level is higher to the lender (given that the borrower does not have an ideal credit past), the rate is likely to be a bit higher than on a standard home loan.

Reverse Mortgage

Reverse Mortgages are designed for seniors. It works on the basis of elderly borrowers who have "rich" assets but not a large amount of cash flow (i.e. they have little or no income). This type of loan allows the individual to borrow for any reason, and the funds are valued against the equity of their property.