Excellent credit could save borrowers over $7k on a personal loan

Kelly Emmerton

26 Apr 2018

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It’s no secret that a rock solid credit score is one of the keys to scoring a great personal loan when you need it - but did you know that keeping your credit history squeaky clean can make a huge difference to how much interest you pay on your loan as well?

Mozo data shows that maintaining an excellent credit score could save you an average of $7,109 and in some cases up to $16,351 on a $30,000 personal loan paid back over 5 years.*

“Some lenders tend to reserve the best rates for borrowers with stellar credit, so if you’ve done the hard work of handling your finances responsibly and always meeting repayments, then why not reep the benefits with a personal loan that will reward you for that?” said Mozo Director Kirsty Lamont.

So if you’ve got top notch credit and you’re after a personal loan to match, check out our Editor’s hot picks below.

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Harmoney Unsecured Personal Loan
  • Interest rates from 6.99% (7.69% comparison rate^^)

  • Borrow up to $70,000

  • No monthly service fee (upfront fee applies)

If you’ve got excellent credit, then you deserve an excellent interest rate - and that’s just what's on offer with the Harmoney Unsecured Personal Loan. With super low rates up for grabs, and no monthly service fee to worry about, this one’s gentle on your wallet.

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RateSetter Unsecured Personal Loan
  • Interest rates from 8.42% (10.97% comparison rate^)

  • No exit or early repayment fees

  • Get a personalised rate estimate in 1 minute

The RateSetter Unsecured Personal Loan comes with competitive fixed rates for borrowers with great credit, looking to borrow up to $45,000. There’s also the option to make extra repayments, and no fee for paying off your whole loan early.

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Wisr Unsecured Personal Loan
  • Interest rates from 8.50% (9.96% comparison rate^^)

  • No ongoing service fees (upfront fees apply)

  • Loan terms between 3 and 5 years available

Fintech lender Wisr offers a super quick online application process, and super low rates for borrowers with an A grade credit history. You’ll be able to borrow up to $35,000 and there’s no ongoing fees to dent your budget.

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Citi Personal Loan Plus
  • Interest rates from 8.99% (9.60% comparison rate^^)

  • Borrow up to $75,000

  • Access an ongoing reusable credit facility

With the Citi Personal Loan Plus, you’ll be able to borrow up to $75,000, so you can fund anything from a holiday to a renovation. The low interest rate applies to the amount you draw down from the reusable credit facility.

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HSBC Unsecured Personal Loan
  • Interest rates from 9.50% (10.06% comparison rate^^)

  • Borrow up to $50,000

  • Fixed monthly repayments to help you manage your budget

The HSBC Unsecured Personal Loan is available for up to $50,000 with loan terms between 1 and 5 years on offer. With competitive low rates on offer to borrowers with squeaky clean credit history, it’s definitely worth a look.

^ The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. ^ Based on $10,000 over 3 years ^^ Based on $30,000 over 5 years

*Based on 30 unsecured personal loans in the Mozo database that offer a range of interest rates depending on the applicant. Savings calculated as difference between the average of the lowest rates (11.07%) and the average of the highest rates (18.61%) and the biggest difference in a single product (13.99% to 29.99% depending on the applicant).

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