Compare Personal loans for casual workers in Australia

Name: Personal Loans For Casual Workers
Creator: Savvy
Published: 2021-01-08T10:26:04+10:30

Home > Personal Loans > Personal Loans For Casual Workers

It won't affect your credit score.

Written by , updated on October 4th, 2023

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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.

What do you need to qualify for a personal loan as a casual worker?

The length and continuity of your employment

Income consistency

A good credit score

Evidence of genuine savings

Your rental tenancy record

Offer an asset as collateral security

The length and continuity of your employment

Income consistency

A good credit score

Evidence of genuine savings

Your rental tenancy record

Offer an asset as collateral security

Top tips for getting personal loans for casual workers

Find our your credit score before you apply

You can find out your credit score for free from credit reporting agencies like Experian, Equifax and illion. If you need to improve it, start paying all your bills on time before you apply for your personal finance.

Find out the comparison rate

It includes the interest rate plus the cost of any lender fees and charges. If you have a choice between different loans, choose the one with the lowest comparison rate to save money.

Use a loan calculator to work out affordability

Use our repayment calculator to find out your repayments for different borrowing amounts, terms interest rates and repayment frequencies.

Think carefully about your term

Personal loan terms in Australia usually range from one to seven years. To save money on your personal loan in the long-term, you should always look towards shorter loan repayment periods wherever possible.

What else you need to know about personal loans for casual workers

What can you use personal loans for casual workers for?

You can take out a personal loan for a variety of purposes. For example, to buy a car, go on a holiday or to renovate your home. You can also take one out to consolidate any multiple, high-interest debts you might have (like credit card debt).

Why does an unsecured loan have a higher interest rate?

An unsecured personal loan doesn’t require you to provide any assets as security for your lender like a secured loan does. They are therefore higher risk for lenders and a higher interest rate is charged on unsecured loans.

How is a casual worker different from a part-time worker?

A part-time worker has regular, guaranteed working hours of less than 38 hours per week. Casual workers on the other hand have no guaranteed, regular working hours. They make work a lot of hours one week, and very few (or even none) the next.

Part-time workers also get both holiday pay and sick pay. That’s another reason why they are perceived as being less risky for lenders.

Part-time workers also cannot have their employment terminated without notice like casual workers can. Their income is therefore more secure than casual workers. Casual workers can instantly lose their job and their income.

Can you get a personal loan if you have a bad credit score?

Yes – bad credit loans are available to borrowers across Australia who find themselves in this position. However, these come with stricter terms and conditions. For example, you're likely to receive a markedly higher interest rate and lower borrowing range (maximum of $12,00). It’s also important to understand that your chances of having your bad credit loan application declined are also higher.

Which documents will I need to submit if I’m a casual worker applying for a personal loan?

The documents you'll need as part of your personal loan application include:

Your last two payslips
Photo ID (such as your driver's licence and/or passport)
Information on current assets and liabilities
90 days of bank statements and employment contracts may be required

You’ll have to first prove who you are with identification documents, then supply evidence of your income and finances through payslips, employment contract, tax returns, and bank and credit card statements.

Can I apply for multiple personal loans if I’m unsure about which lender to go with?

No – applying for multiple loans will show up on your credit report, which may put lenders off you as a potential customer. Always only apply to one lender at a time, so choose carefully.

Is there any way I can show my lender that my casual employment is stable and safe?

Yes – getting your place of employment to write a letter reaffirming that your position is safe and unlikely to end any time soon could help your application, as it shows to your lender that your ability to repay the funds is unlikely to be hampered in the longer term.