Starting a new job can be an exciting opportunity, whether it means a higher income or taking the next step in your career. However, what many people don’t realise is that changing roles can make it harder to get approved for a personal loan in the short term.
The good news is that starting a new job doesn’t automatically rule you out from getting a personal loan. Depending on your circumstances, there may still be options available to you.
Can I get a personal loan if I’ve just started a new job?
It may be possible to get a personal loan soon after starting a job, but this depends on the lender and your overall financial position.
How long you need to be in your job before approval
Many lenders prefer you to have been in your role for at least three months, although some may consider applications after as little as one month if you can provide recent payslips and meet their other eligibility criteria. It can also help to have documents showing your previous work history or income.
Your employment type can affect your application
Approval is not based on time in the job alone. Your employment type can also make a difference. Moving from one full-time role to another in the same industry may be viewed more favourably, especially if your income has stayed the same or increased. Moving from casual work into a permanent full-time or part-time role may also strengthen your application, as it can show more stable income.
On the other hand, if you have moved into casual, contract or self-employed work, lenders may want to see a longer income history before approving your application. This is because variable income can be harder to assess, even if you are earning more than before.
Your probationary period can still count
You may still be able to get a personal loan if you’re in your probationary period at your new job. These often last up to six months, so many lenders won’t consider this a dealbreaker. However, if you’ve had a long period of unemployment between jobs prior to starting this new one, you may not be approved until the end of your probationary period.
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 or more with an asset as collateral for the loan, but how much you can borrow will be determined by your individual profile.
If you have only recently started a new job, some lenders may be more cautious about approving a larger loan amount, particularly if you are applying for an unsecured personal loan. This is because there is no asset attached to the loan, so the lender relies more heavily on your income stability, credit history and ability to make repayments.
A secured personal loan may be viewed differently. For example, if you are borrowing to buy a car and the vehicle is used as security for the loan, some lenders may be more comfortable approving the application than they would be for an unsecured loan used for expenses such as medical bills, travel or general personal costs. However, you will still need to meet the lender’s income, credit and affordability requirements.
Other factors that can impact your borrowing power include:
- Your credit score
- Your history repaying similar loans
- Your income and expenses
- Your existing assets and liabilities
- The number of dependants you have
- The loan amount, term and purpose
Before applying, you can use a personal loan borrowing calculator to estimate how much you may be able to afford in repayments.
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 your income, employment and identity.
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Get matched with suitable lenders
We’ll assess your application and match you with lenders who may be able to help.
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Submit your application
When you're ready, your loan application will be submitted to your chosen lender for formal assessment.
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Finalise your loan and receive your funds
Once approved, sign the final documents and the funds will be sent 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 before you apply
One of the simplest ways to improve your approval chances is to wait until you have been in your new role for longer. Once you reach the three-month mark, more lenders may be willing to consider your application. Your options may increase further after six months in the role, especially if your income has remained stable.
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Consider a smaller loan amount
Applying for a smaller loan may improve your chances of approval, as it can reduce the level of risk for the lender. It may also make your repayments more manageable. If possible, you could use savings to reduce the amount you need to borrow.
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Strengthen your credit profile
Your credit history can play an important role in your application. Paying bills and existing debts on time, reducing outstanding balances and lowering credit limits where possible can help strengthen your profile before you apply.
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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. This is because the lender can assess two incomes instead of one, which may help if your partner has a stable employment history and strong credit profile.
