I’ve just started a new job – can I apply for a personal loan?
If you can prove you have a regular income, you should be able to secure a new job personal loan. However, you will need to do your research, because some lenders will require a minimum term with your current employer. In most cases, though, if you've moved from one permanent position to another on similar pay and have exhibited job stability in the past, there won't be any great issue for you in getting approved for financing.
When it comes to employment history, each lender has their own requirements. Some will want to see stability in your current position, whereas others will accept a consistent income across multiple jobs. As such, it’s important to check eligibility requirements for any new job personal loan you’re considering. If no employment history requirements are stated, it could be worth speaking to the lender before putting in an application.
Do I need to seek out a specialist lender?
No – however, when it comes to providing new job personal loans, traditional banks generally have the most stringent employment history requirements. Most will want to see that you’ve been in your current position for at least three months. For many, if you’re part-time or casual, this period will be even longer (usually six months or more).
By contrast, most online lenders are much more flexible, though the requirements vary significantly between financial institutions. Some lenders will want to see a couple of payslips or evidence of a minimum annual income. Others do not state specific requirements and will assess applications on a case by case basis.
At Savvy, we're partnered with a range of reputable online lenders from across Australia to give you the highest-quality comparisons available. Our lending partners understand your situation and can help tailor a personal loan offer to your situation and needs.
What can I do to improve my chances of approval?
Lenders will look at more than just how long you’ve been at your current job when assessing your application. As such, there are a few things you can do to make up for any issues with your employment history.
Most importantly, you want to make sure you meet all of the other eligibility criteria. For most lenders, being new to your job will be a strike against you. Too many strikes will mean your application is declined, so make sure you:
- Are aged 18+ and an Australian citizen or permanent resident
- Can demonstrate that you receive a regular income and can afford the repayments
- Have a good credit history – most lenders will expect a credit score of 500 or more
- Can show good financial habits, like regular saving and a history or making repayments on time and in full
Further to this, make sure you provide all of the required documentation. As part of your application, you will be required to prove your identity, citizenship, employment and income, and financial history. This is a standard requirement for a new job personal loan and your application cannot be processed without it.
If possible, you should look to supplement this standard documentation with further evidence of your creditworthiness. For example, you could provide:
- a copy of your employment contract
- a letter from your employer stating there is no probationary period for your position
- 90 days of bank statements showing your saving and spending habits, and / or
- details of a guarantor, who agrees to take financial responsibility for the loan if you cannot meet the repayments
Types of personal loan
With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.
Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.
Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.
Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.
If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.
Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.
There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.
Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.
Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.
There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.
Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.
Why compare personal loans through Savvy?
Need more information on getting a new job personal loan?
Helpful personal loan guides
Still looking for the right personal loan?
Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.