Personal Loan - My Money Sorted (2024)

The experts at My Money Sorted have written extensively on personal loans and personal financial planning issues.

Here’s the key information you need to know about personal loans:

• What is a personal loan? —
  A personal loan or debt allows you to borrow a lump sum of money. It can be repaid in instalments with interest, or over a fixed period at a fixed interest rate. Learn more about personal loans, such as reasons for applying for a loan, how to choose one that’s right for you, and the various choices lenders may offer. Read more!
• What is the highest amount I can borrow on a personal loan? —
  The amount of money you can borrow under a personal loan can vary between lenders, depending on a myriad of factors. However, the maximum borrowing amount for personal loans may be capped anywhere between $50,000 and $100,000. This is the general range between bank and non-bank lenders. Read more!
• What Can You Spend Your Personal Loan On? —
  Personal loans are most commonly used to purchase big ticket items like vehicles or white goods, finance home renovations or a holiday, personal projects, medical procedures, or consolidating debts.
• Can a Personal Loan Hurt Your Credit? —
  Taking out a personal loan is a debt and is likely to affect your credit score – whether that is a positive or negative affects depends on the borrower. For instance, if repayments are consistently missed, that can negatively impact your credit, however, if you don’t miss any repayments that can positively impact your score. Having a debt can also reduce your borrowing power for future credit like a home loan. It’s best to consider all the possibilities before committing to a personal loan. Learn more about credit scores – Read more!

My Money Sorted have a range of tools and resources to improve how Australians save, invest and spend their hard-earned dollars. See our otherFREE calculatorsor ourMasterclass coursesto learn more and build your financial future.