Personal loans are popular options for Australians looking to finance home renovations and other large expenses. With personal loan rates at record highs, they are also useful tools for debt consolidation and repayment.

Cheap interest rates and lightning-fast online application and approval times are big pluses, but there are a few important things to consider when looking for a low loan rate. staff. Here are five essential tips from the Mozo experts:

1. Use a good credit score to get a low rate
Online lenders reserve their best rates for borrowers with excellent credit, which is usually over 800. To increase your credit score, pay your bills on time, make credit card payments on the due date, and try. not to ask for too much credit or loan. some products.

2. Shop around and compare prices online
To find the most competitive personal loan rates, you’ll need to look beyond the big banks. Small online lenders have some of the lowest rates for unsecured personal loans, with interest rates starting as low as 6.00% for borrowers with excellent credit.

3. Use the online rate estimation tools
Some lenders allow you to enter a few details online to get a quick personalized quote without affecting your credit score. It usually only takes a minute or two and you’ll get an estimate of the lowest rates available before you actually make a real request.

4. Don’t overdo the loan amount
Before applying for a loan, make sure you can comfortably afford the repayments. Use an online calculator to see how much you can borrow and what the monthly payments will be.

5. Avoid payday loans and quick loans
Payday loans can be quick and easy to arrange, but in Australia the legal interest rate limit for these loans is 48% per annum, plus a high upfront fee.

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Want to compare more personal loan options? Pop over to our personal loan hub for more providers along with a bunch of guides and how-to tips!

^* DISCLAIMER: The Comparison Rate combines the interest rate, fees, and charges of the lender into one rate to show the true cost of a personal loan. The comparison rates displayed are calculated on the basis of a loan of $ 30,000 for a term of 5 years or a loan of $ 10,000 for a term of 3 years as indicated, on the basis of monthly repayments. principal and interest, on a secured basis for secured loans and on an unsecured basis for unsecured loans. This comparison rate applies only to the example (s) given. Different amounts and terms will result in different comparison rates. Costs such as redemption or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may inuence the cost of the loan.

^ See information on the Mozo Experts Choice Personal Loan Awards

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