3 steps to getting a personal loan for your holiday in Australia
While it's true that the Trans-Tasman travel bubble has just opened up, many Aussies are still planning to holiday in their own backyard rather than jetsetting overseas.
And while some may have the savings to back up an Australian trip, for others covering the cost of may seem like a little more of a stretch.
That’s where a personal loan might help you, as an alternative to something like a credit card.
So why not just use a credit card?
Well, currently on the Mozo database, the average secured personal loan rate sits at 7.96% and the average unsecured personal loan rate is 10.26%. Alternatively, the average credit card rate is 17.43%.
While a credit card may give you the flexibility when it comes to the potential cost of a trip, a personal loan may end up saving you in the amount you pay in interest.
How to find the right personal loan for your trip
There’s plenty of choice when it comes to finding a personal loan for your Australian holiday.
But don’t settle for below par, you want to find the one that’s just right for you.
With that in mind, here are three simple steps you can take to help you find what you’re looking for and better your chances at getting approved.
Step 1: Crunch the numbers
There are two sets of numbers that need crunching when it comes to planning a holiday and using a loan to fund it:
- The cost of the holiday
- Budgeting your repayments
First off, be realistic about how much you want your trip to cost you overall. Are you planning to hit the road in a caravan or is it more of a hotel hopping situation? Whichever the option, tally up the large and small costs you’ll likely hit along the way. This will give you a good idea of how much you need to borrow.
Speaking of borrowing, the second set of numbers that need to be crunched is the holiday loan itself. Not only do you need to consider how much you’ll have to borrow, also budget in your regular repayments. Weigh up things like loan terms and repayment frequency (weekly, fortnightly or monthly), as these will impact how much interest you pay over the life of the loan.
If you need an extra hand figuring out what your regular repayments might be on a particular loan, check out the Mozo Personal Loan Repayment Calculator.
Step 2: Consider what extra features you need
Once you have a rough idea of how much you are wanting to borrow (and can afford to pay off), you need to start digging a little deeper.
Along with a competitive interest rate, you’ll want to consider if the personal loan features available on a particular product allow you to pay off your debt sooner or in a more flexible way.
Snagging a loan with free extra repayments is handy because if you get a Christmas bonus from work or simply come into a little more money, you can put it towards your loan without being charged. Similarly, a redraw facility is also a good feature as it gives you the flexibility to redraw on your extra repayments in case you need to later down the track.
Step 3: Apply for your loan
Found a loan that ticks all the boxes? Now it’s time to apply.
Depending on your lender the process of application may be a little different, but generally speaking you’ll likely be able to apply online.
There are also a few things that you’ll need to provide your lender with so they can assess your eligibility to take out a loan. Some of these things include:
- Credit history
- Bank statements
- Payslips
- Utility and other bills
- Personal Identification (Licence, Passport, Medicare etc).
EXPERT TIP: Avoid applying for multiple loans at once as each application will appear on your credit report and can be assessed by the financial institution you want to borrow from.
Ready to start comparing holiday loans? Check out the killer options below or head to our personal loan comparison page for more!
Compare personal loans - rates updated daily
No Fee Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment
5.95% p.a.to 17.95% p.a.5.95% p.a.to 17.95% p.a.based on $30,000
over 5 yearsNo Fee Unsecured Personal Loan
Pay ZERO fees on loans up to $50,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your guaranteed, tailored interest rate in two minutes with no impact on your credit score! Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
- interest rate
- 5.95% p.a.to 17.95% p.a.
- comparison rate
- 5.95% p.a.to 17.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rates based on borrower with excellent credit score. Maximum 3 year term for loan amounts $8,000 or less.
Read our Mozo Review to learn more about the NOW Finance No Fee Unsecured Personal Loan
- Hot DealA discounted rate of 5.25% p.a. (CR: 6.20% p.a.) for the first 12 months will apply for all eligible applicants
Low Rate Personal Loan (Fixed, Unsecured)
Excellent Credit
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6.29% p.a.to 8.48% p.a.6.50% p.a.to 8.69% p.a.based on $30,000
over 5 yearsLow Rate Personal Loan
OurMoneyMarket offer competitive low rates on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
- interest rate
- 6.29% p.a.to 8.48% p.a.
- comparison rate
- 6.50% p.a.to 8.69% p.a.based on $30,000
over 5 years
- Upfront fee
- $150
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rate for Excellent Credit
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
- Featured Product
Personal Loan
Variable, Unsecured
interest rate
comparison rate
Monthly repayment
5.75% p.a.to 25.99% p.a.6.47% p.a.to 29.2% p.a.based on $30,000
over 5 yearsPersonal Loan
Get a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
- interest rate
- 5.75% p.a.to 25.99% p.a.
- comparison rate
- 6.47% p.a.to 29.2% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $10.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Loan application fee ranges between 0% and 5% for loans with interest rates above 5.75% p.a.
Read our Mozo Review to learn more about the Symple Loans Personal Loan
Personal Loan
Unsecured, Fixed
interest rate
comparison rate
Monthly repayment
5.49% p.a.to 19.99% p.a.5.49% p.a.to 19.99% p.a.based on $30,000
over 5 yearsPersonal Loan
Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient and fast 100% online approval. Must be over 18 to be eligible. Winner of Mozo's Experts Choice Best New Loan Product award 2021^.
- interest rate
- 5.49% p.a.to 19.99% p.a.
- comparison rate
- 5.49% p.a.to 19.99% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- -
- Late payment fee
- $20.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- -
- Minimum loan amount
- $2,100.00
- Maximum loan amount
- $30,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Establishment fee of $295 waived for applications made by 31 March 2021.
- Other restrictions
- -
Read our Mozo Review to learn more about the Alex Personal Loan
Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment
6.49% p.a.to 19.95% p.a.6.76% p.a.to 20.26% p.a.based on $30,000
over 5 yearsUnsecured Personal Loan
Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $63,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!
- interest rate
- 6.49% p.a.to 19.95% p.a.
- comparison rate
- 6.76% p.a.to 20.26% p.a.based on $30,000
over 5 years
- Upfront fee
- $195
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $25.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $63,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Wisr Unsecured Personal Loan
Personal Loan
interest rate
comparison rate
Monthly repayment
6.25% p.a.to 19.95% p.a.7.64% p.a.to 21.35% p.a.based on $30,000
over 5 yearsPersonal Loan
Enjoy flexibility with the ability to make additional repayments. Borrowers with excellent credit rating can receive interest rates as low as 6.25% fixed rate (7.64% comparison rate*). Loan terms between 1 to 5 years.
- interest rate
- 6.25% p.a.to 19.95% p.a.
- comparison rate
- 7.64% p.a.to 21.35% p.a.based on $30,000
over 5 years
- Upfront fee
- $495
- Monthly fee
- $10.00
- Exit fee
- -
- Late payment fee
- $15.00
- Repayment options
- -
- Early repayment penalty
- -
- Minimum loan amount
- $2,100.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- For new loans above $25,001 the max interest rate is 13.25% p.a. (14.65% comparison rate). Establishment fee may be lower depending on the amount borrowed
Read our Mozo Review to learn more about the MoneyMe Personal Loan
^See information about the Mozo Experts Choice Personal Loans Awards
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