Personal Loans for Single Parents
Are you a single parent? Find out what your personal loan options are and how to maximise your chances of getting approved.
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But despite the challenging circumstances, there are options available. This guide will take you through what you need to know about being approved for a personal loan as a single parent.
What's in this guide?
- Compare a range of personal loans for single parents
- What might make it difficult for a single parent to be approved for a personal loan?
- What income do you need to be approved for a personal loan?
- How do I know if I can afford a personal loan on a single income?
- What do I need to consider when choosing a personal loan as a single parent?
- How to improve your chances of being approved for a loan
- Can I get a personal loan as a single parent if I have bad credit?
- Alternatives to personal loans for single parents
- How to apply for a personal loan
- Get a personalised comparison rate based on your credit score
100% confidential application
Plenti Fixed Rate Personal Loan
Plenti offers this unsecured personal loan with a fixed or variable rate. Receive a tailored interest rate from 5.99% p.a. based on your risk profile.
- Interest rate from: 5.99% p.a.
- Comparison rate: 6.27% p.a.
- Interest rate type: Fixed
- Application fee: From $99 to $499
- Minimum loan amount: $2,001
- Maximum loan amount: $50,000
Compare a range of personal loans for single parents
What might make it difficult for a single parent to be approved for a personal loan?
Single parents are judged by the same lending guidelines as every other borrower. But unlike many other borrowers, they rely on a single income and are often solely responsible for their debts. This means that they may have more trouble meeting the lending requirements than dual-income borrowers or those without dependents.
Single parents may also be receiving Centrelink payments, which some lenders won’t recognise as a source of income. They may also be only working part-time and therefore fail to qualify for minimum income requirements.
What income do you need to be approved for a personal loan?
|Lender||Minimum income required||Review the loan|
|Cash Converters||$300 per week||Review|
|Cash Train||$1,200 per month||Review|
|Fair Go Finance||$500 per week||Review|
|Swoosh Finance||$300 per week||Review|
|Sunshine Loans||$300 per week||Review|
|Wallet Wizard||No minimum||Review|
|Lender||Minimum income required||Review the loan|
|Bank of Melbourne||No minimum||Review|
|Bendigo Bank||No minimum||Review|
|ME Bank||No minimum||Review|
How do I know if I can afford a personal loan on a single income?
Before applying for any loan, you should consider using the calculator below to get an idea of what your repayments might be. Keep in mind that this is only a guide and each lender will assess your borrowing power differently.
What do I need to consider when choosing a personal loan as a single parent?
There are a number of important factors to consider when comparing your personal loan options. These include:
- Interest rate. You need to check not only whether the interest rate is competitive, but also what type of interest rate it is. If the loan has a fixed rate, it may have more restrictive repayments. For example, you may not be able to repay the loan early without penalty.
- Fees. Personal loans often come with both upfront and ongoing fees. Check the lender's website for a breakdown of the fees and charges when comparing loans. You can also look at the comparison rate to get an idea of the true overall cost of the loan, as this takes into consideration both the interest rate and any mandatory fees.
- Restrictions. You may be restricted as to how much you can borrow, whether you’re able to make extra repayments or if you can repay the loan early.
- Repayment flexibility. This is an important consideration, as it could affect your ability to manage the loan. Find out whether you’re able to make weekly, fortnightly or monthly repayments and if these will line up with your pay frequency.
- The lender. The lender that you're borrowing from is a business that you’ll have to deal with for the next few months or years. See how easy the lender is to contact and, if possible, read third-party customer reviews of the lender online.
How to improve your chances of being approved for a loan
- Check your credit score and report. Check your credit score and full credit report for free with Finder to find out what kind of borrowing position you're in. The higher your score, the less of a risk you appear to the lender.
- Get advice. You can get in touch with a free financial counsellor who can take you through your financial options. Give the hotline a call on 1800 007 007.
- Borrow a lower amount. You should only borrow as much as you need and can afford. Lenders may reject your loan application if they think you can't afford the repayments rather than offering you a lower amount.
- Talk to the lender before you apply. Discuss your eligibility with the lender before you apply. Remember that every loan application you make will show up on your credit report, and too many applications in a short space of time may appear irresponsible.
Can I get a personal loan as a single parent if I have bad credit?
If you're a single parent with marks on your credit report, the uphill battle can be even steeper. This is because lenders will view you as a higher risk applicant.
Generally, short term loan lenders consider applicants with less than perfect credit histories. However, these loans come with high fees and high interest rates attached.
If you own an asset of value, such as your vehicle or your home, you may also be able to apply for a secured personal loan. Borrowing against an asset may offset some of the higher costs associated with having a low credit score. This is because if you default on the loan, the lender can reclaim the value of the loan by repossessing your security.
Alternatives to personal loans for single parents
Sometimes a personal loan isn't necessarily the answer. If you're a single parent facing real financial hardship, applying for a personal loan may do more harm than good.
There are a few alternative loan options to choose from that include low and no-interest loans. These are designed to help people on low incomes pay for necessary expenditures such as car or home repairs.
How to apply for a personal loan
If you’re looking to apply for a personal loan, you can first compare your options using the comparison tables on this page and across Finder. Once you’ve found a loan that you want to apply for, review the application requirements and then click "Go to site" to be redirected to the lender’s online application form.
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Personal Loan OffersImportant Information*
You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.
You'll receive a fixed rate of 10.5% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants. Note: These rates are available until 2 February 2021. Credit, eligibility criteria and terms & conditions apply.
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
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