Starting a new position can often mean an exciting opportunity lies ahead, as well as a potential pay increase. However, what many people don’t know is that switching to a new job could, in the short term, make it more difficult to get approved for a personal loan. The good news, though, is that even if you’ve just switched jobs, there are options still available to you.
Can I get a personal loan if I’ve just started a new job?
Yes, it’s possible to get approved for a personal loan if you’ve just started a new job. Although the minimum time in your current position required by lenders is usually three months, applications are assessed on a case-by-case basis. Lenders don’t have a black and white rule, though some are more lenient than others. This means that, depending on your circumstances, you could be approved for a personal loan even if you’ve just switched to a new job.
How long you need to be in your job before personal loan approval
As mentioned, many lenders will require you to have been working for at least three months in your current job before you can be approved for your loan. However, we work with lenders who, under the right circumstances, can accept applications from applicants with only one to two months in their new role.
One month is considered the bare minimum here because it usually allows lenders to see at least two payslips, which show you’re working and earning a consistent income. Whether you can be approved for a personal loan with less than three months in your new job comes down to your individual circumstances.
When the three-month new job minimum may not apply to personal loans
Lenders will look at a few things when deciding whether to accept your application after starting a new job. The first is your profile, such as how much you’re earning, the amount left over after expenses and other debt payments are deducted and the strength of your credit history and score. If you’re a high income earner with an excellent credit history, you’re more likely to be approved.
The other main factor they’ll consider is the nature of your new job. If you’re working in the same industry and earning the same as, or more than, what you were in your previous job, lenders may be more willing to approve your application before the three-month mark.
How much can I borrow with a personal loan after starting a new job?
Personal loans can reach up to $75,000 without security or as much as $100,000 with an asset as collateral for the loan, but how much you can borrow will be determined by your individual profile. For those that have recently started their new job and qualify for a loan, lenders may not be willing to approve as much compared to others who have a more stable recent employment history.
Some of the other factors that can impact your borrowing power include:
- Your credit score
- Your record repaying similar loans in the past
- Your income and expenses
- Your existing assets (if you own your house) and liabilities (other loans)
- The number of dependants you have
You can make use of borrowing calculators to see how much you could afford in repayments before applying.
How to apply for a personal loan with Savvy
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Complete our online form
Share details about yourself, how much you want to borrow and why.
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Send us your documents
We’ll need to verify things like your income, employment and identity.
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Have a chat with your broker
Your Savvy broker will give you a call and discuss your personal loan options with you.
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Get your application submitted
From there, your broker will prepare your application for formal assessment with your lender.
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Receive approval and your funds
Once you’re approved, simply sign all the final docs and the funds can be advanced to your account.
Why apply for a personal loan with Savvy?
Top tips for boosting your personal loan approval chances after starting a new job
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Wait a while before you apply
The simplest way to maximise your chances of approval is to simply wait a while before you apply. Once you hit the three-month mark, your options are likely to increase substantially as more lenders become open to working with you.
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Consider applying for a smaller loan
Smaller loan sums are often easier to get approved as they present less risk to the lender. They’ll lose less money if you default on a $10,000 loan than they would on a $20,000 loan. If you can, use savings towards your expenses if you aren’t sure about getting approved.
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Maintain positive credit behaviour
Keeping your credit file in tip-top shape is another easy way to keep you in the good graces of potential lenders. Things like paying your debts on time and in full and reducing credit limits where possible can both help you grow your score.
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Apply with your partner
If you can’t afford to wait, applying for your personal loan as a co-borrower with your partner can increase your chances of approval. That’s because the loan debt is being serviced by two incomes instead of one, which is especially helpful if your partner does have a stable employment history.
