Home > Get the Best Personal Loan Rates – Know What to Look Out For!
Get the Best Personal Loan Rates – Know What to Look Out For!
Looking for the best personal loan rates?
Whether it be buying socks or stocks, we as humans are always hunting for bargains. It’s the same for personal loans. We understand your need for the best personal loan rates around. That’s why we’ve provided this breakdown of what affects interest rates and what to look for. Read on to find out more!
What is a personal loan?
A personal loan is simply money you borrow from a bank, credit union or online lender that you can use for any personal expense. Jacaranda Finance is an online lender that offers fast and easy personal loans from $300 – $10,000. A personal loan needs to be paid back in fixed instalments or payments on agreed terms with the finance institution you are borrowing from. For example, with Jacaranda, the loan duration varies from 12 – 24 months, subject to the amount you are borrowing.
Let’s be honest, financial emergencies never occur when you’re flushed with cash. Whether it be your car needing repairs, unexpectedly high bills or the need for a relaxing vacation. Whatever the reason, Jacaranda Finance can lend a hand with a personal loan up to $10,000.
What are personal loan rates?
When searching for the best personal loan rates, firstly, you need to know the basics. Interest rates on personal loans are expressed as a percentage of the amount you borrow. It is an additional fee on top of your loan amount, and needs to be paid with your fixed, regular repayments. Personal loan rates can vary and are affected by factors such as the type of loan you have, the amount you are borrowing, your credit score, the finance institution you are borrowing from, the loan duration, as well as the current demand for money.
Borrowing money is essential sometimes, and could help you get the things you need in your life. Luckily, borrowing money online is easy. At Jacaranda Finance, our loan application is 100% online, meaning you can apply from the comfort of your own home. No nasty paperwork and definitely no waiting in lengthy queues.
When on your quest for the best personal loan rates, you need to be aware that these can change depending on a number of factors such as your credit score.
What affects my loan rates?
Your credit score
Your credit score is a factor that can affect your interest rate. Generally, people with higher credit scores receive lower interest rates than people with lower credit scores. The higher credit score you have, the better chances you have for receiving the best personal loan rates. Lenders typically conduct credit checks to predict how reliable you may be in paying your loan. Furthermore, credit scores are calculated based on the information in your credit report. Your credit report shows information about your credit history. This includes past loans you have taken out, your credit cards, and payment history. For example, failing to pay back a loan can affect your credit score negatively.
Loan amount and loan duration
The loan term, repayment period of your personal loan is how long you have to repay the loan. Generally, the shorter the loan term, the lower interest rates and lower overall costs. However, you might pay higher monthly payments.
Interest rate type
Interest rates come in two types – fixed and variable. Fixed interest rates don’t change over time, it stays the same and is therefore more predictable. Variable interest rates may have an initial fixed period, after which they can change depending on the market on the market. Jacaranda’s personal loans have fixed interest rates.
You can either get a secured or unsecured personal loan. A secured loan requires an asset/collateral to be attached to the loan as security. This is so you can borrow a larger sum of money without being riskier for the lender. Because of this lower risk factor, you may get a better interest rate. Unsecured loans are usually smaller amounts and don’t require an asset for security, however, it may be riskier for the lender. The more risk could there mean higher interest charges.
How can I get the best personal loan rates?
Manage your current loans properly
To get the best personal loan rates, you should improve your credit score. A good credit score shows lenders that you’re a reliable borrower. This can be done by paying your credit card, bills and loans on time. Additionally, don’t apply for too many new credit cards or loans at the same time and don’t overdraw your transaction accounts. This could possibly damage your credit score.
Choose the best loan type for your financial situation
Do you prefer variable of fixed interest rates and what type of personal loan are you looking for? To get the best personal loan rates for you, you can choose a shorter personal loan term and calculate the total loan costs and payments using a loan calculator. Additionally, with a fixed interest rate you always know how much interest you’ll pay and it’s easier to plan your expenses. However, with a variable rate, it may fluctuate and can therefore be more expensive or less expensive depending on the market.
Moreover, you can easily calculate the costs of a personal loan with Jacaranda here
What personal loans does Jacaranda Finance offer?
The following table shows the personal loan types Jacaranda Finance offers:
|Loan Type||Secured Options||Loan amount||Loan term|
|Small Loan||Unsecured||$300 to $2,000||12 months|
|Medium Loan||Secured||$2,001 to $4,600||13 to 24 months|
|Large Loan||Secured||$5,000 to $10,000||13 to 24 months|
Who can get a personal loan with Jacaranda Finance?
At Jacaranda, we keep things as easy and fast as possible. Therefore, our application criteria is pretty simple! If you’re looking to apply for a personal loan, you’ll just need to fulfil the following requirements:
- Have an active mobile phone number and email address;
- Have internet banking set up;
- Be 18 or older;
- You need to have had a regular income for the last 3-months into a personal bank account;
- You must be an Australian Citizen or Permanent Resident.
Additionally, Jacaranda Finance adheres to responsible lending practices which means we are 100% transparent with all our costs. All the costs associated with your personal loan are clearly outlined in your contract for you to review before signing. So, no hidden costs or fees! Visit our costs page to learn more about the costs of our loans!
Find personal loans Australia here!
Can casual workers apply for car loans. Find out with Jacaranda Finance!