What do I need to apply for a loan?

Lenders will have their own requirements. Generally you will need to provide some form of identification, such as a driver's licence or proof of age card. You'll need to provide personal and contact details. You'll also need to provide information about where you work, your income and other financial details.

Can I apply for a loan if I'm 17 years old?

17 year olds generally can't take out loans. It could be possible to take out a a guarantor personal loan , but your guarantor would have to have good credit, meet income requirements and be above the age of 18. If you can help it, you should avoid getting into debt, particularly at such a young age. Failing to meet your repayments could affect your credit worthiness, making it harder to take out loans in the future. If you're looking for financial help, it may be a better option to look into whether you can apply for programs like Youth Allowance . If you need help paying for your education, StudyAssist programs like HECS-HELP could cover your tuition. If it is an option, it is also best to see if you can borrow money from family.

How do I build my credit score at 18?

Your credit score is updated every month. This means that everything you do to improve it when you're as young as 18 will have an impact in the long run. You can take the following steps to improve your credit score: Demonstrate good financial habits. Good financial habits include paying off your debts on time. This can include utility bills, phone and Internet bills and any other outstanding bills you have. No matter how small the debt, you should ensure it's paid on time. If you've been late on payments of $150 or more for over 60 days, your credit score will be impacted. Keep a good account history. Don't overdraw your account and make sure your direct debits are honoured. Save. Having savings and saving regularly shows that you're able to manage money. To the lender, it demonstrates that you'll be able to manage regular loan repayments. All these are indicators that you're financially responsible. Don't apply for too many loans . If you make too many credit applications in a short period of time, this can affect your score.

How can I get the lowest rates?

The best way to get the lowest rates is by comparing loans. Compare interest rates offered by different lenders and find the loan you're eligible for with the lowest rates. Remember to check the comparison rate, which includes fees. The comparison rate is more representative of the true cost of the loan.

I applied for a loan but was rejected. How quickly can I apply for another one?

Every application you make for any form of credit will apply on your credit file and affect your credit score. Applying for too many loans at once will negatively affect your credit score. It will also act as a red flag to lenders, who may reject you for further loans. You may want to wait to make another loan application, especially if you have limited to no credit history. You should work towards improving your score. Check your score regularly to see if you're in the clear.