Low Personal Loan Rates

Low Personal Loan Rates

We all want low personal loan rates when it comes to credit. As we grow older and take on more responsibilities, we learn more about personal finance loans and how they can augment our cash flow or finance different types of investments.

First-time borrowers especially look for low-interest personal loans to help build their credit score. Not all interest rates on personal loans are built equally, however. Understanding how personal loan rates affect your loan – and consequently, your credit score – is an important skill for handling your financial obligations.

Read on for some insight into the topic.

How do I get a better interest rate on my personal loan?

A good credit score gives borrowers a competitive advantage when it comes to personal loan offers and other credit products in the lending market. This information is collected by credit reporting agencies, also known as credit bureaus, from licenced credit providers and loan companies. This data is then reported to credit providers and private individuals who request the information for credit investigation purposes.

When your credit score is good or higher, it informs personal loan lenders that you can be trusted with credit obligations. This trust is often incentivised through low personal loan rates or more flexible loan terms.

Your credit score could mean the difference between getting the apartment you want or being pre-approved for an Australian student loan. Generally speaking, credit providers are more likely to offer low personal loan rates to borrowers with strong credit ratings.

Because of this, many borrowers are often looking for ways to build a strong credit profile. There are many ways to do so. Paying your credit dues on time and in full as scheduled is one of the best methods. Applying for a low-impact credit card or personal loan that you can reliably maintain fortnightly or monthly is another way.

It’s important to determine the problem points in your credit history to better understand how to improve it. This is why financial literacy is a valuable tool when it comes to managing credit.

Can my personal loan affect my credit score?

Your credit score will often be a deciding factor when it comes to your personal loans AU. But what does it entail, exactly?

A credit score doesn’t just indicate how many loans you’ve had. It factors in the number of credit lines you’ve applied for in the past few months, as well as your credit management history. How often you repay your loans, if you pay your dues on time, if you’ve requested debt relief and how often – these are just a few points that make up your total score and whether or not you qualify for a credit offer with low personal loan rates.

Discover credit management insights for free

We offer a Credit Score tool that is powered by Experian, one of the country’s three credit reporting agencies – through their database, we provide real-time snapshots of your credit score, completely free of charge.

We also have a club that gives members unlimited access to powerful insights and resources that will help them take control of their credit. Just sign up for a SocietyOne account and join through the Credit Score webpage or the SocietyOne mobile app.

And because the club is obligation-free, you’re not required to have an existing SocietyOne loan or application for low personal loan rates to join.

What happens if I pay off my personal loan early?

Paying off low personal loan rates ahead of schedule is a good thing – most of the time. It all depends on how much of it you’re paying off and when.

When you pay off your loan in large amounts at irregular intervals, it can raise questions with your credit provider about your financial situation. Everyone has unique financial circumstances and should not be judged at face value – however, if you’re paying off a holiday loan or a bike loan in large sums and far ahead than the loan is due, it may beg the question of why the credit line was necessary in the first place, especially for high-risk loans.

This is one of the reasons why some credit platforms impose an early loan repayment penalty. They may also require a monthly fee as loan insurance in case of missed or late payments, while other providers may prefer adding an added penalty for late payments instead.

At SocietyOne, we don’t have early repayment or monthly charges for all types of loans, and we offer competitive loan rates to borrowers with strong credit ratings.

We value healthy credit management at SocietyOne – the better your credit score, the more attractive the low personal loan rates we offer.

Learn about and master your credit with SocietyOne

Did you know that it’s possible to invest in loans through consumer lending? Or that debt consolidation is a powerful recourse for getting your credit obligations back on track?

SocietyOne offers these and more award-winning personal loan options – we’ve been at it since we first opened our books in 2012. Since then, we’ve helped thousands of professionals address financial gaps and improve personal living standards, and in partnership with our parent group MONEYME, we plan on doing so for many years to come.

We’re your friendly neighbourhood licenced credit provider, inviting you to check our credit offerings. Our application process only takes a few minutes, and we’ll have a personalised loan offer based on your preferences and credit score ready for you within the hour.

Join the SocietyOne community and check if you’re eligible for low personal loan rates today!