Compare personal loans without hurting credit score

A personal loan is a type of loan provided by financial institutions, like banks or online lenders, that allows you to borrow a fixed amount of money for personal expenses. You’re supposed to repay the borrowed money over a fixed period through instalments, with an applicable interest charge. The loan term typically spans up to 120 months.

In addition to interest charges, personal loans may also include fees such as an establishment fee, administrative fee, or early repayment penalty, depending on the lender and the loan conditions.

Econnex Comparison makes applying for a suitable personal loan a breeze of a task.

• To filter our search results according to your needs, we will require you to provide us with some essential details.
• Once done, you can compare personal loans from different lenders, assess your options in and out, and apply for the one that suits your needs.
• After your application is submitted, the lender will review it, usually within a few business days to a couple of weeks. If approved, the loan amount will be disbursed according to the lender’s processing timeline.

Personal loans offer more than just quick funds. They can be a useful financial tool when used wisely. Here's how:

• Lump-Sum Access

You receive the entire loan amount upfront. That makes it ideal for large expenses like car purchases, renovations or weddings. You repay it in fixed instalments, making it easier to budget.

• Lower Interest Rates Compared to Credit Cards

On average, personal loan interest rates are significantly lower than credit cards.

As of July 2025, the average personal loan rate is 10.01% p.a. (and 8.98% p.a. for a secured multi-purpose loan) – on a $10,000 balance as at 1 July, 2025.. Source: Mozo

• Use It Your Way

There’s no fixed rule for how you spend your loan. Whether it’s for travel, education, debt consolidation or medical bills, the choice is yours.

• Flexible Loan Terms

Personal loan durations in Australia typically range up to 10 years, giving borrowers the flexibility to choose a repayment timeframe that aligns with their budget and goals. Most lenders also allow you to select weekly, fortnightly, or monthly repayment schedules for added convenience Source: econnex.com.au

• Simplify Debt with One Repayment

If you're managing multiple debts, a personal loan can help combine them into one monthly repayment. This can make things easier to track and, if you qualify for a lower rate, help you save on interest too.

The minimum loan amount often depends on the lender and your individual circumstances, including income, expenses, and credit profile. At Econnex Comparison, you can compare personal loans starting from as little as $500, depending on what’s available from our panel of participating lenders.

Tip: Even for smaller loans, lenders may assess your ability to repay, so having a clear financial picture can help speed up the approval process.

Yes, your credit score may influence how a lender assesses your personal loan application. It helps lenders understand how you’ve managed credit in the past and whether you're likely to repay on time.

Factors like late repayments, multiple recent credit enquiries, a high credit utilisation ratio, or a limited credit history can impact your score. These may be considered when determining whether a lender approves your loan or what interest rate they offer.

It's important to note that each lender applies their own criteria. Comparing personal loans can help you explore a range of options that suit your circumstances.

The definition of best lender for personal loans here is quite subjective. You’ll come across many financial organizations offering a diverse range of interest rates. However, your creditworthiness would eventually decide the interest rate that you’d be eligible for. That is why it is advisable to compare personal loans and their interest rates to ensure you get your hands on the best deal from all the available options.

A personal loan can only hurt your credit score if you choose not to manage it right. However, if you make timely minimum repayments, avoid applying for too many loans simultaneously, and make conscious efforts to maintain a clean credit history, your credit score will only benefit.

Approval times can vary between lenders and depend on factors like application completeness, credit assessment, and verification processes. Some lenders on the Econnex Comparison may offer approvals in as little as 1 business day, while others might take up to 5 business days or more, especially if additional checks are required.

Tip: Submitting accurate and complete documents can help speed things up.

There’s no universal minimum credit score that all lenders accept. Each lender sets its own credit score requirements for approving personal loan applications.

One big benefit of taking out a personal loan is that it can be used for a variety of purposes, right from funding for travel, wedding, home renovation, and car purchase to debt consolidation.

In personal loans, the interest rate applies to the overall outstanding balance of the loan. So, the repayment that you make on the due date (be it monthly, weekly, or fortnightly) includes the minimum repayment, interest charges, and any additional fee that may apply. You could either choose to pay a fixed interest rate over the term of the loan or a variable one.

Please note that the interest rate that you qualify for largely depends on your lender, credit history, and personal circumstances.

If you don’t meet the eligibility criteria for one lender, don’t worry — you may still have options. At Econnex Comparison, we work with a panel of participating personal loan providers. If your application doesn’t meet the requirements of one lender, we may be able to show you other available options that could be more aligned with your financial profile.

Keep in mind that final approval decisions are made by the lenders, based on their own assessment criteria.