$10,000 loans in Australia

How do I compare $10,000 loans?

There are a few things to look out for while comparing $10,000 loans. You should keep in mind the following when making comparisons:

How much will a $10,000 loan cost per month?

Your monthly repayments depend on the loan you choose and the rate you are offered. The loan term, interest rate and fees largely determine how much you'll end up paying. If you opt for a risk-based loan, your interest rate will be personalised based on your credit score, with higher scores being offered lower rates.

The table above shows the monthly repayments for a $10,000 loan with a 3 year term. You can put in your loan details and get an indication of what your monthly repayments will be. You can also use a personal loan calculator.

Calculate the cost of your $10,000 loan

What types of $10,000 loans are there?

Personal loans

• With a personal loan, you can get access to funding to pay for a variety of large purchases or expenses. These can include medical bills, home renovations, weddings or holidays. These loans can either be secured (by an asset such as your home or car) or unsecured. The amount you can borrow varies from $2,000 up to $100,000, depending on the type of loan. Secured loans usually have higher borrowing limits than unsecured loans as they are less risky to the lender.

Car loans

• Car loans can be either secured or unsecured, and the money is limited to the purchase of the car. Borrowers with poor or limited credit history can increase their chances of approval by going for a secured car loan. As with any secured loan, there is always the risk of losing the asset if you're unable to meet your repayments.

Business loans

• If you're looking to borrow for business purposes, you can explore the option of a business loan. These loans typically come with higher borrowing limits than personal loans with amounts up to $20,000,000. How much you can borrow will depend on the lender, the type of business loan, your annual turnover, your company's credit rating and the purpose of the loan.

$10,000 loan vs credit cards

$10,000 is a large amount of money for most people. It's a large personal loan. It's a massive credit card debt.

Personal loans have lower interest rates on average than credit cards, and scheduled repayments with a set end date.

With credit cards, it's possible to build up a large debt and take years to pay it off. The interest charges can really start to add up.

Is a credit card with a $10,000 limit ever a better option?

If you can qualify for a card with a $10,000 limit you (hopefully) have a reasonable income and an Excellent credit score.

Even so, the card won't let you spend $10,000 in one go. But you could use a card like this to cover multiple transactions over time.

If you're diligent about paying them off, and take advantage of interest-free periods, you could avoid paying huge amounts of interest.

Why compare personal loans with Finder?

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FAQs about 10,000 loans

• Should I take out a long or a short loan term for $10000?

  Choosing how long you want your loan term to be, for a $10000 loan or any other amount, depends on your budget and your goals. A shorter term means more expensive repayments but less interest payments, making it cheaper overall.

  A longer term is more affordable month-to-month but more expensive in the end. A loan that lets you make extra repayments could be the best of both worlds, as you can both take out a long loan term and pay down your principal when you have spare cash.

• Is it better to choose a fixed rate or variable rate for my $10000 loan?

  Choosing between a fixed rate or a variable rate is a matter of preference, for both $10000 loans and other loan amounts.

  Variable rates may be lower, but those interest rates could rise over the life of your loan. Fixed rates are predictable, however could start out higher and tend to have limits or fees for early repayments.

• What credit score will I need for a $10000 loan?

  The higher your credit score the lower the interest rate you can get. Borrowers with Excellent or Good credit scores have a much easier time borrowing larger loan amounts. But you can still get a $10,000 personal loan with a lower credit score. But you will have a higher interest rate.

  Your chance of approval also depends on other factors like your income and expenses.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.

Written by

Rebecca Pike

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

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