18 year old sefies

Loans For 18 Year Olds

Rates and fees last updated on

A guide to getting a personal loan if you’ve just entered adulthood.

If you've just turned 18 you may be excited at the prospect of many things becoming available to you – alcohol, voting and yes, loans. However, finding credit may be more difficult than simply applying and being approved. When you first turn 18 you will have little to no credit history and you may have little savings. So what are your options if you're an 18-year-old who needs a loan? Read our guide to find out.

I'm an 18-year-old who needs a loan. What are my options?

If you've just turned 18 you have various loan options that you can consider.

  • A loan from your current bank. One of the problems 18-year-olds encounter when trying to be approved for loans is that they have limited or no credit history. One way to get around this is to apply with your current bank. You're likely to have a long history with your bank with transaction accounts, travel cards and any other products you've held, so they may be more willing to give you a loan.
  • Unsecured loans for lower amounts. If your bank doesn't have a loan you want to apply for, you can consider personal loans for lower amounts. The standard minimum amount for loans is usually around $5,000, but you can find some lenders offering $3,000 or even as low as $1,000. Compare your options and only apply for as much as your need.
  • Secured car loans. If you want to buy a car, secured loans are less risky for lenders because they will be able to recoup their losses if you default. New and used car loans are available and you can get a lower rate than with an unsecured loan.
  • Getting a guarantor. If you find you are ineligible for a bank loan, you may consider asking your parents, another relative or even an older close friend to go guarantor for you. This person will be taking on a large responsibility because they are agreeing to take on the loan payments if you can no longer make them. You can compare loans that accept guarantors on this page and joint application personal loans on this page.

Compare your loan options

Click through the tabs below to compare loan options from a range of lenders.

IMB New Car Loan

IMB New Car Loan

from

5.99 % p.a.

fixed rate

from

6.34 % p.a.

comparison rate

  • No monthly fees
  • No early repayment fees
  • Borrow up to $75,000
Security Logo

100% confidential application

IMB New Car Loan

Apply for IMB New Car Loan and enjoy a great low fixed interest rate with no ongoing fees.

  • Interest rate from: 5.99% p.a.
  • Comparison rate: 6.34% p.a.
  • Interest rate type: Fixed
  • Application fee: $250
  • Minimum loan amount: $2,000
  • Maximum loan amount: $75,000
Go to site

These loans can help you buy a new or used car.

Rates last updated November 23rd, 2017
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Monthly Repayment Product Description
IMB New Car Loan
From 5.99% (fixed)
6.34%
$2,000
1 to 7 years
$0
$250
Borrow up to $75,000 for a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
RACV New Car Loans
From 6.49% (fixed)
7.03%
$15,000
1 to 7 years
$0
$380
Enjoy this fixed rate new car loan offer from RACV. No ongoing fees.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
A great rate for cars under 2 years old.
Stratton Finance New Car Loan
From 5.49% (fixed)
6.62%
$18,000
1 to 7 years
$7
$499
Benefit from a car broker with over 25 years experience
Bank Australia Car Loan
From 6.45% (fixed)
6.66%
$1,000
7 years
$0
$150
A competitive rate and the ability to offset your car’s carbon emissions for the loan term.
bcu Car Loan
From 5.9% (variable)
6.82%
$5,000
1 to 5 years
$8
$250
Borrow up to $65,000 for a car up to 5 years old. The New Car Loan from bcu allows you to make extra repayments and access a redraw feature
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
Freedom Finance Car Loan
From 5.1% (fixed)
5.94%
$35,000
1 to 5 years
$0
$380
If you meet all the requirements you could get access to a range of lenders to finance a new or used car up to 4 years.
AutoCarLoans
From 5.16% (fixed)
6.64%
$15,000
1 to 7 years
$5
$381.80
AutoCarLoans can match you with a lender from its panel with rates starting from 5.16% p.a. Suitable for vehicles up to 2 years old.
IMB Secured Personal Loan
From 7.39% (fixed)
7.74%
$2,000
1 to 5 years
$0
$250
All approved applicants can access this competitive rate and use the loan to finance a range of purposes. Loan amounts up to $60,000 available.
RACV Personal Loan
From 7.49% (fixed)
8.04%
$5,000
1 to 7 years
$0
$380
You could use this personal loan offer from RACV to help finance a renovation, holiday or project.
bcu Secured Freedom Loan
From 9.08% (variable)
9.99%
$4,000
1 to 5 years
$8
$250
A competitive, secured personal loan that you can use for a variety of purposes.
NRMA New Car Loan
From 5.99% (fixed)
6.53%
$15,000
1 to 7 years
$0
$380
Purchase a new car with an NRMA Car Loan with a fixed rate term and no monthly fees. NRMA Members could save 1% on loan rates.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
Get behind the wheel of your perfect car with a competitive interest rate from St.George. Get an application response within 60 seconds.
Bank of Melbourne Secured Personal Loan
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
A low rate personal loan from Bank of Melbourne with variable or fixed option.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$0 (On new loan applications before 31st January 2018.)
Apply for a Westpac car loan and enjoy a great interest rate when you purchase a new or used vehicle.

Compare up to 4 providers

Citi Personal Loan Plus

Citi Personal Loan Plus

from

9.99 % p.a.

variable rate

from

10.95 % p.a.

comparison rate

  • Loan amounts from $5,000
  • Offers a reusable credit facility
  • Repay over 5 years
Security Logo

100% confidential application

Citi Personal Loan Plus

Apply for a Citi Personal Loan Plus and get competitive interest rate offer with a reusable credit facility.

  • Interest rate from: 9.99% p.a.
  • Comparison rate: 10.95% p.a.
  • Interest rate type: Variable
  • Application fee: $199
  • Minimum loan amount: $5,000
  • Maximum loan amount: $75,000
Go to site

Use the funds from these loans however you need to.

Rates last updated November 23rd, 2017
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Monthly Repayment Product Description
Citi Personal Loan Plus
From 9.99% (variable)
10.95%
$5,000
3 to 5 years
$10
$199
Borrow up to $75,000 to use for a range of purposes. Competitive rate of 9.99% p.a. available to all approved applicants.
Westpac Unsecured Personal Loan
From 12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$0 (On new loan applications before 7th December 2017)
Borrow up to $50,000 for a term of up to 7 years with the unsecured Loan from Westpac
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
$0
3% (of loan amount)
Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.
DirectMoney Unsecured Personal Loan
From 8.5% (fixed)
9.36%
$5,000
3 to 5 years
$0
$595
This unsecured loan features tiers of interest rates from 8.5% p.a. to 19.95% p.a. based on your credit history.
Pepper Money Unsecured Fixed Rate Personal Loan
From 9.99% (fixed)
9.99%
$5,000
1 to 7 years
$0
$0
Apply for up to $50,000 and receive conditional approval within minutes.
Latitude Personal Loans (Unsecured)
From 13.99% (fixed)
15.19%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
An unsecured loan designed for multiple purposes – renovating, buying a car or travelling. Funds can be in your account in as little as 24 hours.

Compare up to 4 providers

Sunshine Short Term Offer

Sunshine Short Term Offer

  • Centrelink borrowers considered
  • Fast approval service
  • Borrow up to $2,000
Security Logo

100% confidential application

Sunshine Short Term Offer

A short term loan with a fast and easy application available to those with good or bad credit. You can apply today and get approved for up to $2,000.

  • Loan amount: $2,000
  • Loan term: 9-15 weeks
  • Turnaround time: 30 Minutes - conditions apply
  • Fees: 20% of borrowed amount + 4% of borrowed amount each month
  • Bad credit borrowers OK
  • Quick and easy Approval
  • No Credit Checks
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These loans are designed as emergency stopgaps when you're caught short before payday.

Rates last updated November 23rd, 2017
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Tips to be approved for a loan at 18

  • Show that you have savings. If you can show the lender that you're good at saving it may be more willing to approve you. A steady savings history will work best with your current bank as they can view your account information when you apply.
  • Offer a deposit. Having a deposit when you apply for a car loan shows you're in a good financial position. The larger the deposit the less you need to borrow, and the more likely an approval may be.
  • Get a letter from your employer. If you're only employed casually or have not been employed for long, a letter from your employer stating the security of your employment may help your application.
  • Apply for a lower amount. Applying for too much when you have little credit history or don't earn a high income can be a red flag to lenders and result in an automatic rejection, instead of an offer for a lower amount.
  • Apply for a secured loan. Secured loans, such as car loans, are less risky for banks because they will be able to recoup their losses.

How you can compare your loan options

  • The interest rate the loan comes with.
    Check whether the interest rate is fixed or variable and how competitive it is compared to other similar products.
  • How much you're able to borrow.
    Lenders offer varying minimum and maximum loan amounts, but what you're offered ultimately depends on what you can afford to repay. This is determined by the criteria set by the lender.
  • The features on offer.
    Have a look at the different features on offer, which you can find out more about by reading the reviews on finder.com.au. It’s important to familiarise yourself with the value-adding features of a loan. These can include the ability to make extra repayments, an offset facility or extended warranty on a car loan.
  • The fees you will be charged.
    There are different types of fees you can be charged, ranging from establishment fees to monthly fees and early repayment fees. Find out what charges are associated with your loan before signing on the dotted line.

Weighing up the benefits and drawbacks of applying for your first loan

  • Get access to funds. This is an obvious ‘pro’. Get access to the funds you want to make the purchase or investment you need.
  • Build up your credit history. Acquiring a loan allows you to establish and build your credit history. This ultimately affects your eligibility for other types of loans and access to better interest rates as well.
  • Limited loan amounts. If you have no or limited credit history you may only be eligible for a small loan, which may not be enough for what you need.
  • Risk of getting into debt. Taking on any loan comes with risk, so make sure to budget your repayments and don't apply for a higher loan amount than you can afford.

Questions 18-year-olds may have about loans

What do I need to apply for a loan?

Lenders will have different application processes. Generally, you will need to provide a form of documentation, such as a driver's licence or proof of age card, some personal and contact details, information about where you work and your income and other financial details.

How can I get the lowest rates?

Compare the rates offered by different lenders and find the loan you are eligible for with the lowest rates. Remember to check the comparison rate as this includes fees and is more representative of the true cost of the loan.

I applied for a loan but was rejected. How quickly can I apply for another one?

Every application you make for any form of credit will appear on your credit file and affect your credit score. Applying for too many loans at once will not only negatively affect your credit score but be a red flag to lenders, who may reject you for further loans. You may want to wait to make another loan application, especially if you have limited to no credit history.

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Related Posts

SocietyOne Unsecured Personal Loan

Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.

DirectMoney Unsecured Personal Loan

This unsecured loan features tiers of interest rates from 8.5% p.a. to 19.95% p.a. based on your credit history.

NOW FINANCE Personal Loans

Get rewarded with a low interest rate for your good credit history. Rates from 8.95% p.a. to 16.95% p.a. depending on your credit score.

Westpac Unsecured Personal Loan

Borrow up to $50,000 for a term of up to 7 years with the unsecured Loan from Westpac

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6 Responses

  1. Default Gravatar
    BriannaOctober 11, 2016

    When can I maybe get the money if not the hole 5,000 then maybe 2,000

    • Staff
      ElizabethOctober 12, 2016Staff

      Hi Brianna,

      If you’d like to apply for a loan you can find out about some of your options above. Your eligibility depends on your financial situation so check the eligibility criteria before you apply.

      Hope this helps,

      Elizabeth

  2. Default Gravatar
    PrateekSeptember 25, 2016

    How can i get a loan of $2000 at the age of 18.

    • Staff
      ElizabethSeptember 26, 2016Staff

      Hi Prateek,

      You can have a read of the guide on the page above to find out how may be able to be approved. You can also compare some of your loan options – make sure you read the eligibility criteria on the review pages to check you are eligible.

      Thanks,

      Elizabeth

    • Default Gravatar
      ChaniceDecember 2, 2016

      I am 18 can I get a loan

    • Staff
      AnndyDecember 2, 2016Staff

      Hi Chanice,

      Thanks for your questions.

      Yes, the lenders on this page may consider you for a loan if you are 18 years old. However, please note that other eligibility criteria apply.

      Please do click the name of the loan product you are interested in to know the requirements and criteria to apply.

      Cheers,
      Anndy

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