
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Find out which lenders offer risk-based pricing for their personal loans, how the rates are determined and compare personalised loans now.
From
fixed rate
From
comparison rate
100% confidential application
An unsecured personal loan up to $50,000. You'll receive a tailored interest rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Risk-based pricing is when banks and lenders offer loan products without a settled interest rate. Instead, they have a minimum and maximum rate range for the loan and will offer you an interest rate within that range based on factors like the loan amount, your credit history and other financial and employment information.
If the lender decides that you are low risk and that you are likely to repay the loan on time, you will get a lower rate. If you are a higher risk, which may be because you have more debt or a lower income, the lender may give you a higher interest rate.
While risk-based pricing is the standard in other countries such as the US, it has not traditionally been available in Australia. There are a few reasons for this, but the main reason is because Australian credit reports used to only show negative information. This made it difficult for banks to get a well-rounded impression of potential borrowers and apply a risk-based rate to a customer's product.
Now, with the introduction of comprehensive credit reporting, banks and lenders will be better able to see whether a borrower is a risk and therefore can more accurately price their loan products. As a result, personalised interest rates are likely to become a standard aspect of personal loans.
Get your credit score and comprehensive report now!
Banks and lenders that offer risk-based pricing determine your interest rate in a number of ways. They may consider the following:
Comparing risk-based personal loans can be tricky because you don't know what interest rate you're going to get. However, there are still a number of features you can compare without knowing what rate you'll receive:
This differs between lenders, but generally, you can expect the following process:
Can you find out your interest rate before you apply?
Most lenders will provide you with a rate estimate before you submit a full application. This does not affect your credit score.
Are risk-based personal loans better than standard personal loans?
Neither product is better than the other, but one may suit your needs better. For example, if you feel that you would be a low-risk borrower that could qualify for a lower rate, you may want to apply with a risk-based lender.
How can I tell if a lender offers a risk-based product?
We will note it in our comparison tables by showing an interest rate range rather than a single interest rate.
With bonus Qantas Points and a range of complimentary insurance covers, the Westpac Altitude Platinum - Qantas is worth considering if you want more frequent flyer points.
Earn Altitude rewards with Westpac’s Altitude Platinum credit card, while enjoying the benefits and privileges of platinum status.
Learn more about how PayActiv's Earned Wage Access service can help you access up to $500 of your paycheque for a $5 fee charged fortnightly (only if you access your wage before payday).
A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.
Get $250 credit back when you meet the eligibility requirements and 55 days interest-free on purchases.
InstaPay is a pay-on-demand service offered by Employment Hero that allows employees to access salary advances of up to $250 per week for a flat fee starting from just $2.
Find out more about AdvancePay, the Commonwealth Bank's new "pay on demand" platform accessible to creditworthy CommBank customers.
We've compared the fees, investment options and performance for both Sunsuper and HESTA to help you choose between these two popular super funds.
Hostplus and HESTA are two popular industry super funds, but which is right for you? We've compared their fees, investment options and performance side by side to help you choose.
We've compared the fees, investment options and performance for both QSuper and Sunsuper to help you choose between these two popular super funds.