Important disclosure

Average Credit Personal Loans

If your credit score is average, it’s only fitting that you qualify for a fair deal when borrowing. Avoid low-grade offers and start comparing average credit personal loans below. By choosing a manageable repayment using our calculator, you could be on your way to building a better credit score that attracts even better deals.

Calculate your repayments

Loan Amount

$10,000

Term

3 months

Bankwest

Flexible Personal Loan

EST Monthly Repayment
EST Monthly Repayment
10.99%
Advert. Rate (p.a)
Comparison rate
Whatever it is you’re dreaming about, a Bankwest Flexible Personal Loan puts you in control. Pay it off early, make additional repayments and redraw additional repayments you’ve made all at no extra cost!
St.George Bank

Unsecured Personal Loan (Fixed)

EST Monthly Repayment
EST Monthly Repayment
12.99%
Advert. Rate (p.a)
Comparison rate
Whether you're taking control of your finances, planning a special event, or making a large purchase, our Unsecured Personal Loan may be the right solution.
St.George Bank

Unsecured Personal Loan (Variable)

EST Monthly Repayment
EST Monthly Repayment
12.99%
Advert. Rate (p.a)
Comparison rate
Whether you're taking control of your finances, planning a special event, or making a large purchase, our Unsecured Personal Loan may be the right solution.
Westpac

Westpac Unsecured Personal Loan

EST Monthly Repayment
EST Monthly Repayment
11.99%
Advert. Rate (p.a)
Comparison rate
A personal loan can help you to get what you’ve always wanted. Plan ahead with a flexible loan term of between 1 and 7 years. Apply for between $4,000 and $50,000 (conditions apply). Make extra repayments to pay your loan off sooner (prepayment fee may apply). Choose a repayment frequency to suit when you get paid - weekly, fortnightly or monthly.
NAB

NAB Variable Rate Personal Loan

EST Monthly Repayment
EST Monthly Repayment
12.69%
Advert. Rate (p.a)
Comparison rate
1-7 years flexible loan term, borrow from $5,000 up to $55,000 and redraw additional repayments you've already made
NAB

NAB Fixed Rate Personal Loan

EST Monthly Repayment
EST Monthly Repayment
12.69%
Advert. Rate (p.a)
Comparison rate
Borrow from $5,000 up to $55,000 for 1 to 7 years flexible loan terms
People's Choice Credit Union

Unsecured Personal Loan

EST Monthly Repayment
EST Monthly Repayment
13.99%
Advert. Rate (p.a)
Comparison rate
As a member owned organisation, our first priority is to help you. We continually focus on providing high levels of personalised service and value for money products – such as our Personal Loans– there to help you make those life-changing purchases.
The Mac

Personal Loan Unsecured

EST Monthly Repayment
EST Monthly Repayment
15.99%
Advert. Rate (p.a)
Comparison rate
Whether you're dreaming of far away destinations or of revolutionising the world with your next big invention, our Unsecured Personal Loans are a flexible and simple solution from an ethical and trusted team.
Regional Australia Bank

Personal Loan

EST Monthly Repayment
EST Monthly Repayment
15.99%
Advert. Rate (p.a)
Comparison rate
All-purpose Personal Loan for quick and easy funds when you need them.

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Minimum and maximum loan periods vary between 6 months and 10 years. Comparison interest rates vary between 6.55% and 20.89% p.a. Total interest repayments vary between $1,387 and $4,165 over the life of the loan. *Comparison rate is based on an unsecured loan of $10,000 for a term of 3 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.

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Average credit personal loans – Find fair deals in Australia

Being stuck in the middle credit score ranges isn’t fun. On the one hand, you’re a few missteps away from the bad credit category and its subprime offers. On the other, you’re not eligible for the perks afforded to good and excellent credit borrowers.

Fortunately, it’s still possible to qualify for a personal loan with decent terms, though not easy. BestFind does some digging on how to get a personal loan with an average credit score in Australia.

How do credit scores work?

Think of a credit score ladder that starts from the bottom at 0 and goes up to 1000 or 1200 steps. The exact range varies with each credit reporting bureau (CRB), of which the two major ones are Experian and Equifax.

Now, the credit score ladder is typically divided into five sections that are labelled “excellent,” very good,” “good,” “average,” or “below average.” The CRBs generally use the following information to determine which section of the credit score ladder you’re currently on:

  • Payment history. Paying your bills on time is one of the top ways of moving up the credit score ladder.
  • How much you owe. A high credit utilization bumps your score down and vice versa.
  • The length of your credit history. A long credit footprint boosts your score.
  • Your credit mix. Having your debt under different credit accounts such as personal loans, credit cards, and car loans helps improve your credit rating.
  • New credit applications. Loan applications are recorded in your credit file. Approaching too many lenders is a red flag that paints you as a desperate and, therefore, high-risk borrower.

As mentioned earlier, the CRB aggregates all this information into a credit score, which then tells financial institutions if you’re high-risk or low-risk. The best personal loans are offered to borrowers with a high credit rating since they’re more likely to repay their debt.

What’s an average credit score?

An “average” credit score for Aussies ranks somewhere between 500 and 600. This isn’t too bad, considering that Australia’s average credit score is 550. Qualifying for a personal loan with an average credit score, though tricky, isn’t the almost impossible task it once was when banks and credit unions had more monopoly.

Today, alternative lenders have levelled the playing field by offering financial products for every credit score category. However, you’ll still have to pay a slightly higher interest rate than what’s available for good and excellent credit.

What personal loans are available if I have an average credit score?

Take a look at the options for average credit loans plus how they work:

  • Unsecured personal loans. Most unsecured personal loans require borrowers with a good or better credit rating. Since you’re not putting up your asset as collateral, there’s more risk to the lender, and a good credit score helps to even it out. But if you have average credit, expect to pay a higher rate as a way to offset the lender’s risk.
  • Secured personal loan. If you have property or a valuable asset to offer as collateral, you can leverage a lower rate. Choosing a secured personal loan also improves your chances of approval.
  • Joint application personal loans. If you’re worried your average credit might lower your chances of qualifying, you can opt for a joint personal loan. This requires adding another person to your loan application, preferably someone with a strong credit score.
  • Peer-to-peer (P2P) loans. This is an online arrangement where you can borrow directly from individual lenders with no banks involved. P2P companies are responsible for matching you up on their platforms or websites. As with unsecured personal loans, an average credit score will necessitate paying a higher rate due to the risk you pose.
  • Car loans. This type of personal loan is usually secured by the vehicle you’re buying, so it generally comes with a lower rate. However, failure to repay means you may lose your car. On top of that, your rate may still be higher than what someone with good or excellent credit will pay.

What interest rate will I get with average credit?

Most Australian lenders have no set interest rate and will often advertise a range instead. Specific rates are allocated on a case-by-case basis that considers the borrower’s financial situation and other details such as how much they’re asking for and the loan repayment period. If the lender has a single headline rate on display, the exact rate you get may move away or closer to that, depending on your credit rating.

Average credit borrowers do carry some risk but not too much. So a risk-based pricing model will typically allocate you an interest rate that’s in the middle of the lender’s range. If you want to trim the amount of interest you have to pay, you can reduce the loan amount and the loan term.

How do I compare average credit personal loans?

As explained above, what you see isn’t always what you get when it comes to interest rates. Still, you can compare personal loans in a way that improves your odds of getting a better deal. Consider the following:

  • Interest rate. A lower headline rate is a good starting point if you’re hoping to bag the best rate available for average credit scores.
  • Fees and charges. Aim for fewer costs by going for affordable establishment fees, ongoing fees, and late and early repayment fees.
  • Additional features. Look at repayment frequency, whether you can make extra repayments, and if there’s a redraw facility. These features allow you to tailor the loan to your situation.

What’s the best way to improve my average credit score?

Some practical actions to take include:

  • Paying off some of your debt
  • Sticking to payment deadlines
  • Fixing errors in your credit report
  • Avoiding too many loan applications in a small space of time

Average credit score personal loans FAQs

Can I also apply for a credit card if I have average credit?

Yes, credit cards are handy when you need some fast funding. But plastic debt generally comes at a higher cost than personal loans, unless you get a 0% credit card. Also bear in mind that you can keep using a credit card (revolving credit), whereas a personal loan delivers a once-off lump sum payment into your bank account.

Can I pre-qualify for a personal loan?

Yes, some lenders can provide you with a more reliable estimate of the interest rate and terms you’ll get before you commit. This is done through a “soft” credit check, not a “hard” credit check. Therefore, it won’t dent your credit rating.

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