Loans for casual and part-time workers
Casual and part-time workers can get personal loans. You'll need proof of regular income and regular savings. And the better your credit score, the better your odds of approval.
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Key takeaways
- Casual employees can secure personal loans by demonstrating regular income and a strong credit history.
- Working 12 months at one employer or providing an employer letter significantly boosts your application.
- Consider offering loan security or applying jointly to improve your chances of approval.
Will banks lend to casual employees and part-time employees?
Lenders consider full-time workers to be the least risky customers to lend to. But part-time workers with a stable income can also get approved, especially if you've had the same job for a while.
Casually employed borrowers have the hardest time getting personal loan applications approved.
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.
Why is it more difficult to take out a loan as a casual employee?
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.
What's the difference between a part-time and casual employee?
| Part-time employees | Casual employees |
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Tips to get approved for a loan if you work casually
- Build up your work history first. The longer you've been in a steady casual role, the less risky you look to lenders. Under current Fair Work rules, you can request conversion to permanent part-time after 6 months (12 months for small business employers), which can also strengthen your application. Some lenders approve casual borrowers with as little as 6 months of steady employment, so check individual lender criteria rather than assuming you need a full year.
- Get a letter from your employer. Much of the risk associated with lending to casual employees is the fear that they could stop receiving work. By providing a letter from your employer that confirms your employment and ensures the lender that there's no reason this arrangement shouldn't continue in the future, it could help your application.
- Make your repayments on time. Lenders are able to see a snapshot of your credit history, so make sure that snapshot shows off you regularly meeting your bill and debt repayments. This has the added effect of improving your credit score.
- Don't apply for multiple loans. Lenders are able to see any credit accounts and loans that you apply for and if you make multiple applications in a short space of time you may appear to them as an irresponsible borrower.
- Save. If you can show evidence of your savings to a lender, they may be more inclined to give you a loan. For example, if you are looking to buy a car and need a $5,000 loan and have $3,000 saved in a high interest savings account, the lender may see you as less of a risk.
- Improve your credit score. The higher your score, the lower risk you are to the lender.
- Provide loan security. If you own an asset of value, such as your home or a vehicle, offering this as loan security could help you to get approved more easily and/or allow you to access a lower rate loan. Offering security reduces the risk to the lender. This is because they can repossess the asset should you default on the loan.
Did you know?
The law changed on August 26, 2024 so that casual employee became eligible to initiate a change to permanent full-time or part-time employment, provided the casual employee:
- meets the minimum employment period ( 12 months for small business employers, 6 months for all other employers);
- believes they are no longer a casual employee at the point in time when they make the notification to their employer;
- wants to change their employment status to full-time or part-time employment.
Tips to get approved for a loan if you work part-time
If you're employed part-time, you will have more loan options. Here are some tips on getting your application across the line:
- Check the minimum income. As your employment is considered more stable, you will just need to ensure you meet the minimum income criteria with regards to employment requirements. Most lenders on this page want $25,000 to $36,000 a year, so check each product's eligibility note.
- Receive your pay into your bank account. Along with payslips, this will be a way for lenders to check your income against the information you provide in your application. If you are paid in cash, make sure you deposit this into your bank account or get payslips from your employer to be able to prove your income.
- Get in touch with the bank if you're unsure about eligibility criteria. This is the best way to check anything before submitting your application and reduces the risk of having a rejected application listed on your credit file.
What documents do I need for a loan for casual workers?
- ID, which may include a drivers license or passport
- Details of and proof of address
- Proof of employment (you may also be required to have been in your current role for 3, 6 or 12 months)
- Proof of income, such as 2 consecutive payslips and/or 90 days of bank statements
Additional documents you may need to provide, or that may help you get approved:
- A letter from your employer
- Details of your guarantor
- Details of loan security (e.g. a vehicle or other asset of value)
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.
How long do you need to be in a job for a personal loan?
Have you been working for at least three months? Many employers are comfortable approving your loan as long as you have been working at least three months, as this shows your employment is stable, and in most cases, that you're out of your probation.
Our expert says
"Knowing your credit score is really important, as it's one of the key things lenders look at when assessing your loan application. It can also help you get ahead with your finances: Finder's data shows 15% of people who know their credit score, say they are now better at paying their bills on time and in full. You can see your credit score for free and get monthly updates on any changes in the Finder app."
What are my options if I can't get a personal loan as a casual or part-time employee?
0% interest loans
See if you're eligible for a no interest loan with Good Shepherd. There's certain criteria you need to meet, but if you're eligible, you can access up to $2,000 for essential goods and services such as car repairs, dental costs and household items, or up to $3,000 for a rental bond or disaster recovery.
Short term loans
Short term loans, also known as payday loans, are an option if all else fails and you urgently need cash. 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. Interest rates on short-term loans can be as high as 48% per year, so be very careful with these loans, as regularly using them will cost you a lot of money.
Guarantor loans
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 loans
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 im Anathi i need loan im working security my salary is 4000 and I need 2500 I’m going to pay on friday 26 but the problem is i don’t have payslip what must i do?
Hi Anathi,
If the loan you’ve chosen requires payslips as part of the application process, you may need to ask your employer for payslips so you can apply. You might also be able to inform the lender of your situation and ask if copies of your bank statements (where your salary is deposited) will be enough.
However, some lenders may not require payslips to approve you for a loan. They will just require the last 90 days of your transaction history.
I hope this helps,
Elizabeth
My 17 year old would like to get a loan for a new car. She has worked for the same employer from age 14. She is guaranteed employment when she finishes yr 12 this year. Is it possible for her to get a loan in her name or a co-loan with her father?
Hi Jayne,
It’s not possible for someone under the age of 18 to apply for a loan, she’ll need to apply for a guarantor personal loan. With this loan, her father will need to meet all of the eligibility criteria and will essentially be responsible for the loan should she not be able to make the repayments.
Many major banks offer guarantor personal loans, so you can try and check car loans and compare your options and pick one that will fit you best.
I hope this helps,
Elizabeth
Of all the products you claim assist people whose sole or combined income include Centrelink I’ve not found one single product that does actually do what you are claiming. My question is why do you bother?
Hi Jo,
Lenders have a variety of criteria they consider when approving applicants for loans, with income just making up one part of the application process. So when we list options for Centrelink borrowers, it is lenders that consider people who receive part of or their whole income from Centrelink payments. It doesn’t mean they will be automatically approved. Other things, such as debt, assets, and the overall ability to manage the loan comes into play when a lender decides whether or not to approve an application.
Just to make sure you’re on the right pages, here’s a list of loan options for Centrelink borrowers. Here’s a list of unemployed loans (i.e. your entire income comes from Centrelink) and here is a list of pensioner loans if you receive some sort of pension. If you are a retiree, you can check loans for retirees.
Hope this information will help,
Elizabeth
Good day! I am Lorilee. I just want to ask if I am able to get a loan of ₱10,000.00, I am 20, I am employed recently but for almost a week. I’d never reach a minimum rate. But I need it for emergency purpose. Will you help me with it. Thank you!
Hi Lorilee,
The options for casual and part-time employees are listed on the page above, but unfortunately as you have only been working a week I am unsure if you will be able to get a loan. Lenders usually need to see evidence of a stable employment history before they will approve you for a loan, and so require you to be employed for at least three months before they will approve you.
Thanks,
Elizabeth
Hello there, my name is luis Raccuglia, I just wanted to know, can a casual worker who been working in the same place for close to 4 years , be able to take a personal loan for example between $10,000 to 30,000 dollars , or an unsecured personal loan, or my other question would it be easier if you take the loan with a partner so use two names instead of one in the loan application, any more neo would be appreciated
Hi Luis,
Thanks for your inquiry.
Your eligibility for a personal loan will depend on your income, your financial stability and your employment situation. Each lender will have set criteria to determine the risk they are taking on by lending to you. One option may be to talk to your current bank if you have a good relationship with them as they may be more willing to offer you a loan. As you mentioned, another option is to apply for a loan as part of a joint application – you can find a list of lenders who offer joint application personal loans and check your options.
You can select the “Go to site” button of your preferred lender/bank to proceed with your application. You can also contact them directly if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
I hope this will help.
Thanks,
Elizabeth