Choosing a personal loan that's right for you

woman in her red hat on a holiday

Dreaming of owning that car? Or maybe you want to consolidate debts? Whatever your goals are, a personal loan could be a way to achieving them.

With many lenders currently offering low rates, low or no upfront fees and/or ongoing fees, you may be unsure which personal loan could be right for you. 

multiple credit enquiries can reduce credit score

Should I shop around?

While shopping around for a personal loan might seem like a good idea, often, it can have the opposite effect. Each time you apply for a personal loan, a record will be left on your credit file showing that you applied for credit. Multiple credit enquiries from different lenders can result in a reduced credit score. This can make you a less attractive applicant to some lenders and potentially lead to your loan application being declined, or a higher interest rate being charged, if approved.
factors that affect a loan application

What do lenders consider when assessing a loan application?

Lenders consider many factors when assessing a loan application, such as income, credit history, existing liabilities, employment, residential stability and other information included in your application. You can take steps to improve your chances of being approved, by reducing existing debts, always making loan repayments on time, having stable employment and income.

While being turned down for a personal loan can be disheartening. The first step to getting back control of your financial situation is to find out from your lender why your application was declined, and to make sure the information on your credit file is accurate.

choosing a lender

Choosing a lender

Before you apply, it's best to consider your options. There are many lenders offering different personal loan solutions. Making a list of the features and benefits that are important to you can help identify which personal loans could meet your requirements. Although the interest rate may be important, you should consider all features and benefits, to help you decide which of these may better suit your needs. For example:

  • Are there application and ongoing monthly fees associated with the loan?
  • Can you make extra repayments without paying early repayment fees?
  • Do you want to provide security for the loan (e.g. a motor vehicle)?
  • Do you want a fixed or variable interest rate?
get your interest rate

Is there a way to get your interest rate before applying?

Yes, there is! You can get your interest rate quote before you apply for a personal loan with some lenders. At Pepper Money, you can use our get my rate tool or go through an accredited personal loan broker to apply for an individual interest rate quote. Better yet, it won't impact your credit score. This is done by using an authorised "access seeker" to make an enquiry on your credit report.
access seeker

What is an access seeker?

An access seeker is a person (or company) that is authorised in writing by you to make an enquiry on your credit file. An enquiry made by the access seeker does not impact your credit score, but it assists lenders to better understand your circumstances. While the interest rate is tailored to you, this is not a loan approval. A personal loan application will still need to be submitted and is subject to assessment and verification by the lender.

Achieving your goals can be exciting. However, there are things you should consider before deciding if a personal loan could be right for you. It's worth taking the time to understand what you want from a loan before applying. 

Want to know more? Contacting a broker could be a way for you to understand your options. Otherwise, our real-life guide to Personal Loans answers the common questions, outlines the application process and discusses important things to look out for. 

Want to know more about Personal Loans?

To find out more about a Pepper Money Personal Loan or apply for an individual interest rate quote today, head to the get my rate tool or contact a Pepper Money personal loan accredited broker.

Got a question? Call us on 1300 108 794. We're here to help.


Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 

The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.

Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.

Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.

Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.

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