If you work on a part-time or casual basis, you may find it harder to take out a loan. This is because many lenders prefer to lend to full-time workers, as they are perceived as less risky to lend to. But at the end of the day, lenders care about your ability to repay the loan rather than your employment status.
You can maximise your chance of being approved for a loan by proving you can meet your repayments, such as by showing that you have a regular income, a good credit score, and that you have a history of paying bills and debts on time.
Your hours aren't stable
Casual employees do not have guaranteed working hours and therefore no fixed salary. While some weeks you may work 50+ hours, other weeks you may work no more than 10. This means that your weekly earnings fluctuate, which could potentially make meeting repayments difficult, at least in a lender's eyes.
You're not entitled to sick pay or annual leave
If you choose to take a holiday, or are forced to take time off for illness, you would not be entitled to any pay. For a lender, this can be viewed as risky as it could affect your ability to meet repayment obligations.
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If you're a casual employee or employed part-time, the following documentation will be required when applying for a personal loan:
Lenders are looking at these documents to verify who you are and decide how risky it is to lend to you. If they see your bank statements show signs of paying bills on time and saving money, then you could have better chances of approval or even lower rates.
If you're employed part-time, you will have more loan options. Here are some tips on getting your application across the line:
You can compare personal loans from all around Australia through Finder. We also spend our time researching the top products to give your our best personal loan picks
If you still aren't able to get approved for a personal loan, you do have some more options.
Short term loans, also known as payday loans, are an option you can consider if all else fails and you urgently need cash. However, it's important to keep in mind that short term loans are much more expensive than personal loans from normal lenders and have to be repaid over much shorter terms. They still have eligibility criteria you should try to match, but tend to be much less strict on it.
These loans are for durations of 16 days to 1 year and are for amounts of $100 to $2,000, but higher amounts up to $5,000 are also available. Be very careful with these loans, as regularly using them will cost you a lot of money.
Guarantor loans are where you include someone who is legally responsible for meeting your repayments should you default on the loan. Usually, guarantors are required to be homeowners with good or excellent credit scores.
So, if you have a friend or close family member who meets this eligibility and is willing to go guarantor on your behalf, it may improve your chances of having your personal loan application accepted. It may also help you to access a greater amount of funding than your salary would normally allow, but be aware that your guarantor's credit score may suffer if you fail to meet your repayments.
Joint application personal loans allow you to apply with another person, usually your partner. This spreads the responsibility for your repayments across two people, making it less risky for the lender.
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Hi I’m looking to get a loan of 10,000. I have been working for my current employer full time for over a year. My only problem is they pay me cash. Is there anyway that I could get the loan with payslips and a letter from my boss confirming my employment?
Hi Jack,
Thank you for your inquiry.
Yes, there is. It’s good to note that each lender will set out their criteria separately and it’s always important to make sure you meet the eligibility before apply. For this reason, I suggest that you check personal loans, compare them and directly get in touch with your chosen lender to confirm with them if you are eligible for their loan or not.
I hope this information has helped.
Cheers,
Harold
My son works part time. Has been there for a few years now. He lives at home with me. Needs a car loan of $5000. He has no credit history. What are his options?
Hi Karen,
Thanks for reaching out to us.
You’re actually already on the correct page to compare your options.
You may click on your preferred loan on this page to see more details and click on ‘Go to Site’ button to submit an online application
Before applying for any loan, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant PDS/ T&Cs of the loan option before making a decision and consider whether the product or option is right for you.
Cheers,
Rench
I’m a casual shift that is working a minimum of 15hrs – 25hrs+. So i’m wondering if it’s possible to get a $36,000 loan. Been working at this place for almost 10months now.
Hi Tai,
Thanks for your question.
If you are a casual employee, some of the lenders above may consider you for a loan, subject to other eligibility criteria. To learn more about the eligibility criteria and requirements to apply for a particular loan product, feel free to visit its review page. If you are ready to apply, just click the ‘go to site’ button.
Cheers,
Anndy
I work at a small gas station as part time working 24 hours a week. Could I take out a small loan ?
Hi Dixie,
Thanks for your question.
You can review the criteria and requirements and discuss your loan options with a lender listed above. There are also lenders that offer short-term loans that you can compare.
Hope this helps.
Cheers,
May
Hi i want to apply for a loan of 60 000 please and iam a temporary on year contract which sure next week i will be permanent
Hi Tshego,
You can find lenders that consider casual and part-time applicants on the page above, but as you’re on a temporary contract you will need to get in touch with the lender to confirm your eligibility. Whether or not you’re approved for a loan as high as $60,000 will depend on your ability to manage the repayments.
I hope this helped,
Elizabeth