If you’re thinking about getting a personal loan, you probably have plenty of questions. Here are the most common ones we get from our Wisebuy clients.
What can you use a personal loan for?
You can use a personal loan for a variety of reasons, including buying a car or consolidating high-interest credit card debt into a lower interest personal loan.
How long can you take out a personal loan for?
Usually from 1 to 7 years.
How much can you borrow?
This depends on the lender’s policies. Some lenders will be prepared to lend more than others, provided you demonstrate you can afford your repayments.
What’s a comparison rate?
The comparison rate includes the cost of interest plus any loan fees and charges.
What’s the difference between a secured and unsecured loan?
A secured loan requires you to put up an asset as collateral security. For example, your car. If you don’t make your repayments, the lender can repossess and sell your car to recover the amount you owe.
Unsecured loans on the other hand don’t require you to put up an asset as collateral security.
Are interest rates lower on a secured loan than an unsecured one?
Can I get a personal loan with a bad credit score?
Yes, it’s possible, but there is also a chance you may be declined, which will further decrease your credit score.
If you are approved with a bad credit score, you will be charged a higher interest rate. You can check your credit score for free before you apply for a loan with credit reporting agencies like Experian.
How can I improve my credit score?
You can improve your credit score over time by making all your debt and credit repayments on time.
Can you pay out a personal loan early?
This depends on the terms and conditions of your loan. You should look for a loan that provides you with this flexibility because if you can repay it faster, you’ll pay less interest.
How can I lower my repayments?
You can lower your repayments by taking out your loan over a longer term. For example, taking out a 7 year loan term rather than 5 years.
However, it’s important to understand that you’ll pay more interest if you take out your loan over a longer term.
How we can help
Taking out a personal loan can be confusing. The market is highly competitive and there is a vast range of products on offer. At Wisebuy Investment Group in Newcastle, our experienced and licensed brokers can help you to find the right loan. Our mortgage brokers in Newcastle can also help you with your application.
Contact us today for an obligation-free chat! We’ll take the time to understand your individual needs before providing you with appropriate advice. Our focus will be on finding the right loan for your needs from over 60 Australian lenders.
And best of all, our service is free!