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Whether you want to put in a pool, pay for dental work, buy a car, or dust off the suitcase and travel overseas, there are many finance options that can help you out. 

That said, it’s important to understand which option is the right fit for you. To help you make the best decision, we’ve broken down the basics of each.

1. Personal Loans 

No matter what your next purchase is, you can use a personal loan to make it happen. While the amount you borrow might be similar to a credit card, personal loans are for a set period of time. 

Terms are generally between one and seven years, and how much you borrow can vary, depending on your lender. While your lender will also calculate your repayments, you can choose how often these will be, whether that’s weekly, fortnightly or monthly. 

As long as you meet all the requirements, the application process is straightforward and the turnaround time fairly quick. Before you compare loans, get an understanding of what’s important in terms of extra fees, interest rates, and payment methods.

2. Car Loans

Whether you’ve got your eyes set on a particular vehicle, or you simply want the confidence that comes with knowing what you can afford, a car loan could be a great option for you. The best part? Car loans are secured, which means you’ll get the security of a lower rate.

You can get finance on most new and used cars, caravans and motorbikes. Like other personal loans, you’ll need to determine how much you can borrow from your lender, the term length and interest rates on offer, as well as your repayment schedule. Most application processes are also quick and simple. So if everything looks good, you’ll be on the road in no time.  

3. Refinancing

From switching jobs to having kids, your life can easily change while paying off a personal loan. And with new expenses to consider, refinancing can help you stay on track. Some reasons you might look into refinancing include:

Accessing more funds
Switching to a lower interest rate
Funding other purchases – like renovating your home

4. Credit cards

Should you get a credit card or personal loan? The answer simply depends on what you’re buying and how you intend to pay it back. But to give you a better idea, here’s why a credit card could be the way to go:

Suitable for short-term debts and smaller purchases
Doesn’t come with terms – you’re only required to make ongoing repayments to keep your account in good health
You get interest-free days
It gives you a constant cashflow

While credit cards certainly have their benefits, don’t forget they also carry higher interest rates. And as they only require a minimum repayment each month, your debt will roll on and on. If you need money for a one-off, large purchase, a personal loan could be the better choice. 

The right option for you

From comparing rates to calculating your repayments, it pays to do the legwork before choosing a finance option. Depending on your circumstances, you’ll find there are pros and cons to each. But ultimately, it’s about thinking smart and doing what’s right for you and your family.  For more information, contact us (link to contact us page) to talk to a specialist.
 

The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. You should obtain and consider the Product Disclosure Statement or terms and conditions relating to the products mentioned, before deciding whether to acquire any products.

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The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. You should obtain and consider the Product Disclosure Statement or terms and conditions relating to the products mentioned, before deciding whether to acquire any products.

RACQ Bank loans and banking products are issued by Members Banking Group Limited ABN 83 087 651 054 AFSL and Australian credit licence 241195 trading as RACQ Bank.

Retail partners, offers and discounts may change at any time without notice. Get the RACQ Discounts App or visit racq.com/discounts for the conditions, limits and exclusions for each offer.