New Job Personal Loans

Looking for a personal loan but have just started a new job? Knowing what’s involved and what to watch out for can help you get the finance you need. 

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, updated on October 4th, 2023       

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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

Why compare personal loans through Savvy?

Need more information on getting a new job personal loan?

What type of loan should I apply for?

A secured personal loan presents less of a financial risk to lenders. As such, many are more willing to overlook shortcomings in an application if an asset is put up as security. This can make it a better personal loan option for those starting a new job.

However, before signing up to a secured loan, it’s important to understand how they work. If you fail to make your repayments, the lender can repossess the asset the loan is secured against. They can then sell it to recover their costs. If you’re not comfortable with this, you’ll need to find a lender that’s willing to approve an unsecured personal loan.

If you're able to keep on top of your monthly repayments, though, there's no risk of repossession of your asset. This is a last resort in all cases.

I’m still within my probation period – will this stop me from getting a new job personal loan?

While being on probation will limit your options, some lenders will still consider you. It will help if you have consistently worked in the same industry for an extended period of time. However, even if you’re new to your industry, some lenders may still be able to help you.

I’ve been working a series of short-term (3 – 6 month) contracts – can I still get a new job personal loan?

While being a professional contractor will limit your options, some lenders will still consider you. However, you will need to be able to show that you have been consistently employed in the same industry.

What should I be looking for in a new job personal loan?

At the end of the day, getting a new job personal loan is just like any other loan. As such, the same criteria apply when choosing a loan:

  • Does the loan suit your situation? Does it have any additional features (early repayment, a redraw function, etc.) that you need?
  • Can you comfortably afford the repayments?
  • How do the interest rate and fees compare to other suitable personal loans?
I’ve already been declined by one lender – should I try another?

While it can be disappointing to be declined, you need to consider your next move carefully.

Applying – and not being approved – for multiple loans can significantly impact your chances of approval elsewhere, as they show up on your credit file. As such, unless it’s an emergency, it’s probably best to wait until you have been in your job for at least three months. This will give you more options and should increase the likelihood of you being approved.

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.