Getting a personal loan: does your job matter? 

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Personal Finance

Team MONEYME|20 September 2024| 2-minute read

When you apply for a personal loan it’s important to put your best foot forward. Too many rejected applications could negatively impact your credit score.  

Your lender will consider a variety of factors – from your spending habits to your debts. And your employment status is one of them.  

So, it helps to understand how your lender might look at it. 

Do you work full-time or part-time? 

If you work part-time, you might worry this will prevent you from getting a personal loan. 

However, at MONEYME, we don’t draw a distinction between full-time and part-time employment.  

What’s more significant is how you manage your money. We take responsible lending seriously and want to ensure to the best of our ability that you can repay your loan without putting yourself under financial stress. 

You might work part-time, but if you’ve enough cash left over to make repayments comfortably, then you could consider applying – so long as you meet other criteria.  

Are you employed permanently or on a casual basis?  

Whether your job is permanent or casual can make a difference.  

Most lenders set a minimum income, and some may require that you’ve worked at your job for a particular length of time. 

At MONEYME, our minimum income requirement is $30K per year. If you’re employed on a casual basis we also prefer that you have been employed in your current role for at least a year. This suggests you’re in a sufficiently predictable situation to make repayments. 

For permanent employees, there’s no minimum employment period.    

What happens if you’re self-employed?  

Some lenders are unwilling to offer personal loans to self-employed people.  

At MONEYME, you are eligible to apply if your ABN has been active for at least three months, although you might be offered a lower limit if your ABN has been in use for less than 12 months.   

How do lenders assess your employment status?  

Your lender will ask you to prove your employment status by submitting documentation, such as pay slips or bank statements.  

MONEYME has streamlined the application process, and we’ll verify your employment through online bank statements, so you won’t have to submit paperwork.  

When to apply 

Before applying for a personal loan, it’s essential to feel confident you can make repayments.  

If your employment status fulfils your lender’s criteria – and you meet their other requirements – then it could be time to apply.