Personal loans for new employees
Lenders will often need you to be in a full-time role for 3 months or a part-time role for 6 months before offering you a loan. But there are still loans available if you haven't hit those milestones.
I just started a new job. Can I get a personal loan?
If you're a new employee, you can still apply for a personal loan. That said, it may be harder to get approved since lenders want to know that you earn enough money to repay them AND that your income is stable enough to meet regular repayments.
Most lenders prefer that you have been in your job for at least 3 months. However this often isn't a hard rule as applications are looked at on a case-by-case basis. If you are confident you can meet the repayments, and especially if you can prove that with bank statements and your credit history, it may be worth applying.
Compare new employee personal loans
How long do I need to be employed to take out a loan?
Most lenders would like you to have been working for the same employer for 3 months. Some prefer up to 6 months or simply past your probation period.
However, this all depends on the lender as you do not need to be employed to receive a personal loan, as there are personal loans available to applicants who are unemployed. Applicants who are unemployed are also more likely to be approved for a personal loan if they have a good credit history and/or a guarantor.
We've collected information from popular lenders and how long they want you to have been in the same job.
How do I improve my chance of approval as a new employee?
If you're a new employee or are about to start a new role, keep the following in mind before you submit your personal loan application:
1. Wait a while
This may seem obvious, but if you are in a position where you can wait until you've been at your job for a bit longer then that will help your application. Of course, life waits for nobody and sometimes you need the money immediately. In these cases, you still have options.
2. Consider applying for a lower amount
High borrowing amounts are always going to be riskier to lenders, so borrowing less may be what pushes your application over the line. Of course this depends on your situation and needs, but it may be difficult to find a loan for over $20,000 without stable employment.
3. Offer security
A secured loan is less risky for lenders. If you can offer security, such as your car or equity in your home, then you'll have an easier time getting approved. While this can be a good option, it does mean that the asset you've offered up could be repossessed if you default on the loan - so make sure you're comfortable meeting your repayments!
4. Meet the other minimum requirements
A lender may overlook how long you've been at your role if you can show you're a responsible borrower who they can trust to meet repayments. To do this, you'll need to meet every other minimum requirement such as age, residency status, and annual income.
5. Maintain a strong credit score
While credit scores are less important in Australia compared to places like America, they still play a role in the approval process - and also the interest rate you'll receive. You can learn what your credit score is in seconds through Finder, as well as tips on how to improve it if you need to.
6. Ask for a reference from your employer
An employer advocating for you will help enormously. The only reason why lenders see people just starting a new job as risky is because of the chance they may not pass their probationary period. If your employer advocates for you, then the lender can assume that you have stable employment.
7. Have supporting documentation. As much as possible.
On top of the standard documents you need to apply for a loan, such as bank statements and identification documents, make sure that you show off anything that proves you'll be a responsible borrower. This could include things such as investment portfolios, secondary income streams, or savings.
8. When in doubt, speak to the lender.
At the end of the day, the lender knows what you need to get your application over the line. They will be able to look at your situation and let you know what else you need in order to meet their criteria.
What can I use the loan for?
In general, you can use one of these loans for just about anything you could legally buy. Finder has dedicated pages for the most common uses for personal loans:
Can I get a car loan as a new employee?
Yes, there are car loans that new employees can apply for. While there is never any guarantee that you will be approved for a car loan, or any loan for that matter, there are things you can do to increase your chances:
Get a job offer letter.
Having a job offer letter in writing could increase your chances as it proves your ability to repay the loan. Attach the letter to your application, either online, in person or via post.
Get a guarantor.
A guarantor takes responsibility of the loan if you default and therefore you pose less of a risk to the lender. Guarantors must have a good to excellent credit score, and they may be required to be home owners, depending on the lender. It may help you get a lower interest rate too.
Make a down payment.
The more money you can put towards a down payment, the better your chances of approval. If you can put 10% or 20% down first, you'll be seen as a less risky borrower - plus it will lower the debt you need to repay and you could even get a lower interest rate.
Why compare personal loans with Finder?
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We've researched and reviewed hundreds of loans as part of our Finder Awards. Our database and tables are always up-to-date and our in-house experts regularly appear on Sunrise, 7News and SBS News.
We are independently owned and have a mission to help Australians make better financial decisions. That means our opinions are our own and you can compare nearly every personal loan in Australia (and find a better deal).
Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.
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