Things you might be wondering
What is the true cost of a personal loan?
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The true cost of a personal loan isn't just the interest rate. When comparing loans, look at both the interest rate and the comparison rate, which includes the interest rate plus most fees to give a clearer view of the overall cost.
The comparison rate is based on a standard loan amount and term and may not reflect the actual cost of your loan. Some fees, such as late payment fees, may not be included.
What should you look for when comparing personal loans?
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Interest rates matter, but they are not the only consideration when doing a personal loan compare. The overall structure and flexibility of the product are just as important.
First, check the policy on early repayments. Some lenders charge a fee if you pay off your loan ahead of schedule. If there is a chance you might want to clear your debt early, a product with no early repayment fee gives you that freedom without penalty.
Second, consider whether a fixed or variable rate suits your needs. A fixed rate locks in your interest rate for the entire loan term. Your repayment amount stays the same from the first payment to the last, which makes budgeting straightforward and protects you from rate increases. A variable rate can go up or down depending on broader market conditions. It may offer more flexibility in some cases, but it also means your repayments could increase if rates rise and decrease if rates go down.
Finally, look at the fee structure in full: the establishment fee, any ongoing monthly service fees, and what happens if you miss a payment. The comparison rate captures most of these, but reading the full fee schedule gives you the complete picture.
How much can you borrow with an ING Personal Loan?
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With an ING Personal Loan, you can borrow from $5,000 to $60,000, subject to eligibility. Loan terms range from 2 to 5 years for loans up to $30,000, and up to 7 years for larger amounts. Use the ING Loan Repayments Calculator to compare loan amounts, terms and repayments before applying.
How does your credit score affect your personal loan?
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Your credit score reflects your borrowing and repayment history (including how often you've applied for other credit products) and gives lenders a basis for assessing your application. A strong credit history, including consistent on-time payments and responsible use of credit, can result in a more favourable personalised rate.
Under Comprehensive Credit Reporting, your credit file captures positive financial behaviours alongside any negative marks. This means a record of paying loan accounts on time is now visible to lenders, not just instances where things went wrong.
If you have not checked your credit score recently, doing so before you apply is a sensible step. You can request a copy of your credit report from Australian credit reporting bodies to check for any errors or outdated information that may be affecting your score.