New Job Personal Loans

Name: New Job Personal Loans
Creator: Savvy
Published: 2021-01-11T13:02:48+10:30

Home > Personal Loans > New Job Personal Loans

It won't affect your credit score.

Written by , updated on July 3rd, 2024

Starting a new job can be an exciting time, offering fresh opportunities and, in many cases, the chance to increase your earnings. However, life doesn't stand still while you're changing roles. With ongoing financial obligations to shoulder alongside the potential costs connected to your new employment, money can be tight. In this situation, you might want to consider a personal loan – but what can you get as a recent hire? If you're struggling to find a personal loan, let Savvy help. Through us, you can compare quotes from dozens of lenders to find an option that suits your circumstances. Get started with a free, no-obligation quote today!

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 personal loan. However, getting one immediately after starting a new job can be challenging. This is because lenders see you as a higher risk, even if you are earning well above their minimum income threshold. As a result, some lenders will require a minimum term with your current employer – often three months or more – to demonstrate your financial security. In many cases, however, if you've moved from one permanent position to another on similar pay and have exhibited job stability in the past, you could still get 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. It's therefore 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

Unsecured personal loans

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

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 rate personal loans

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 rate personal loans

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.

Debt consolidation loans

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.

Travel loans

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.

Wedding loans

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.

Renovation loans

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.

Self-employed loans

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.

Student & education loans

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.

Green loans

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?

100% free

There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.

Paperless applications

You won't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.

Reputable lending partners

We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.

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 or casual worker 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 and meet the lender's income requirements.

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.