Top personal loan tips and traps

By Gabriella Margerison · · 2 min read
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In these unpredictable financial times, there are a lot of ways to make a personal loan work for you, whether you're looking to consolidate debt, finance long-planned home projects or simply access some extra cash. 

A low rate personal loan from a trusted bank or non-bank lender is a far better option than opting for a payday or fast cash loan, and personal loan rates are now more accessible than ever. But there are plenty of things that can go awry in the process of taking out a loan and paying it off.

So if you're considering a personal loan, read on for the Mozo expert guide to the top tips and traps of personal loans. Then, check our comparison of low rate personal loans from bank and non-bank lenders in Australia.

Expert personal loan tips

Look beyond the big banks to find the most competitive rates. Smaller online lenders have some of the lowest rates on the market, with rates starting from under 7% for borrowers with excellent credit.

Save on interest with fee-free extra repayments. Every extra cent you put into paying off your loan will reduce the interest you pay. Just watch out for fees, as some lenders will charge you for extra repayments.

Pay off lingering debt with a debt consolidation loan. If you've got multiple credit card or small loans and are getting lost in the paperwork and late repayment penalties, consider combining smaller debts into one lower rate debt consolidation loan.

Avoid these personal loan traps:

Steer clear of payday and fast cash loans. Payday loans might be quick and easy to organise, but in Australia the legal interest rate cap for these loans is an astounding 48% p.a. plus hefty upfront fees.

Choose the right fixed loan term up front to avoid break cost fees. Ensure you don't lose out savings made through early repayment by choosing your loan term carefully and finding a loan that will allow for extra repayments.

Check your consolidated loan timeline. You might have scored a lower interest rate to reduce your repayments, but if the loan term is stretched out much longer than the individual debts were, you could end up paying more interest over the life of the loan.

If you're wondering what kind of loan you can take out, then read our guide to personal loan eligibility and check out the loan options below to start your research.

LOW RATE PERSONAL LOANS

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Last updated 22 July 2025 Important disclosures and comparison rate warning*
  • Low Rate Personal Loan

    Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes

    interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.28% would cost $35,033.88 including fees.

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  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    16.95% p.a.to 29.95% p.a.
    32.99% p.a.to 45.5% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-36 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 3 years. Representative example: a 3 year $10,000 loan at 16.95% would cost $14,952.03 including fees.

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    Details
  • Secured Personal Loan

    Exceptional Credit, $5,000-$75,000

    interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a secured personal loan with competitive low rates for borrowers with exceptional credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.28% would cost $35,033.88 including fees.

    Compare
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    Details

* WARNING: 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 calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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