New Job Personal Loans

Starting a new job can be an exciting time, offering fresh opportunities and, in many cases, the chance to increase your earnings. However, life doesn't stand still while you're changing roles. With ongoing financial obligations to shoulder alongside the potential costs connected to your new employment, money can be tight. In this situation,  you might want to consider a personal loan – but what can you get as a recent hire?

If you're struggling to find a personal loan, let Savvy help. Through us, you can compare quotes from dozens of lenders to find an option that suits your circumstances. Get started with a free, no-obligation quote today!

How can I get a personal loan if I've just started a new job?

In many cases, if you've moved from one permanent position to another on similar pay and in a similar industry and have exhibited job stability in the past, you can be approved for financing. However, some lenders will require a minimum term with your current employer – often three months or more – to demonstrate your financial security.

If you've moved around a bit, lenders will see you as a higher risk, even if you're earning well above their minimum income threshold. It's therefore important to check eligibility requirements for any personal loan you’re considering. When you apply with Savvy, we'll make sure to match you with a member of our lender panel whose requirements you meet.

Do I need to seek out a specialist lender?

No – however, when it comes to providing new job personal loans, traditional banks generally have the most stringent employment history requirements. Most will want to see that you’ve been in your current position for at least three months. For many, if you’re part-time or casual, this period will be even longer (usually six months or more).

By contrast, most online lenders are much more flexible, though the requirements vary significantly between financial institutions. Some lenders will want to see a couple of payslips or evidence of a minimum annual income. Others do not state specific requirements and will assess applications on a case by case basis.

At Savvy, we're partnered with a range of reputable online lenders from across Australia to give you the highest-quality comparisons available. Our lending partners understand your situation and can help tailor a personal loan offer to your situation and needs.

What can I do to improve my chances of approval?

Lenders will look at more than just how long you’ve been at your current job when assessing your application. As such, there are a few things you can do to make up for any issues with your employment history.

Most importantly, you want to make sure you meet all of the other eligibility criteria. For most lenders, being new to your job will be a strike against you. Too many strikes will mean your application is declined, so make sure you:

• Are aged 18+ and an Australian citizen or permanent resident
• Can demonstrate that you receive a regular income and can afford the repayments
• Have a good credit history – most lenders will expect a credit score of 500 or more
• Can show good financial habits, like regular saving and a history or making repayments on time and in full

Further to this, make sure you provide all of the required documentation. As part of your application, you will be required to prove your identity, citizenship, employment and income, and financial history. This is a standard requirement for a new job personal loan and your application cannot be processed without it.

If possible, you should look to supplement this standard documentation with further evidence of your creditworthiness. For example, you could provide:

• A copy of your employment contract
• A letter from your employer stating there is no probationary period for your position
• 90 days of bank statements showing your saving and spending habits, and / or
• Details of a guarantor, who agrees to take financial responsibility for the loan if you cannot meet the repayments

Types of personal loans

Unsecured personal loans

With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.

Secured personal loans

Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.

Fixed rate personal loans

Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.

Variable rate personal loans

Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.

Debt consolidation loans

If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can make them more convenient to manage and save you money.

Joint personal loans

Many lenders will give you the option to apply jointly with a partner. Doing so can boost your chances of approval, given that your loan will be serviced by two incomes instead of one. It may also be convenient for covering shared expenses.

Self-employed personal loans

Personal loans aren’t limited to PAYG employees. If you’re running your own business, you can still be approved by submitting tax returns and other business financials instead of payslips and utilise your funds however you wish.