A personal loan lets you borrow money to pay for something special, like a holiday, car or home renovations. You have to repay it with interest over a fixed term, usually between one and seven years.

Getting the best deal on a personal loan can save you thousands in interest and fees.

Looking for a personal loan to consolidate debt? See debt consolidation and refinancing to find out if this is right for you.

Most people shop around before they pick a holiday or buy a car. Shopping around for the right loan can save you thousands in interest and fees.

With a fixed interest rate, your repayments are fixed and won't change over the loan term. You'll know exactly how much will come out of your bank account each month.

With a variable interest rate, your repayments will change if interest rates change. If interest rates rise, your repayments will be higher. If interest rates fall, your repayments will go down.

A loan with a variable interest rate usually has no early exit fee. This might be better if you're planning to pay the loan back early.

Use the personal loan calculator

Work out your loan repayments, and how much you can save by making extra repayments.

The interest rate you get on a personal loan can be different to the advertised interest rate. Your interest rate depends on things like your credit score, income, expenses, and savings.

With a secured loan you provide an asset, such as your car, as security for the loan. If you don't pay the loan back on time, the lender can repossess your asset and sell it.

With an unsecured loan, you don't have to provide an asset as security. But the interest rate will be higher, and you may need a loan guarantor. If you fail to pay back the loan, the lender can still take you to court to get back the money you borrowed.

Some lenders will give you a lower interest rate if you have a loan guarantor. Before you ask a family member or friend to go guarantor for you, make sure you both understand the risks for a guarantor.

If you need to borrow up to $2,000 quickly for essentials, like a fridge or car repairs, see if you can get a no interest loan. These loans have no interest, no fees and quick approval.

Compare personal loans before you shop for what you want. Find out what you can spend and how much your repayments will be.

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Comparison websites can be useful, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites.

Make sure you have enough in your bank account to make repayments when they're due. If you don't, you'll be charged a missed payment fee.

Doing a budget is a great way to stay on top of loan repayments. It can also help you plan for extra repayments to pay off the loan faster.

Before you start making extra repayments, check if there's an early exit fee.

If you're having trouble making loan repayments, see how to get debt under control for help on what to do.