Other types of credit

Credit for different needs

There are many types of loans and credit available so it is a good idea to research and compare different products. Like buying the right-sized shoes, choosing a credit product that fits your needs may help you avoid a lot of financial pain down the track. Find out more about the following credit products:

  • Personal loans - From home renovations to honeymoons these loans can help you pay for special, one-off expenses.
  • Overdrafts - Overdrafts can help if money is tight and you want to make sure there are funds in your account to cover things like bank fees.
  • Consumer leases - Rent or lease computers, electrical appliances or other household goods, but be wary as it can be an expensive way to get these products.
  • Buy now, pay later services - Offered by approved retailers, they allow you to order or purchase a product immediately and delay payment.
  • Interest-free deals - Stores offer these if you want new goods but don't have the cash to pay for them upfront.
  • Rent to buy - Rent a product instead of buying it but check what it will really cost you and whether you will own that product at the end of the agreement.
  • No or low interest loans - For people on a low income who need to buy an essential item like a fridge, washing machine or computer, or pay for a service like medical or dental treatment. These loans have no fees and no or low interest.
  • Payday loans - For those who need money fast but fees and charges can be higher than other types of credit.
  • Peer to peer lending - Online lending platforms that match investors to borrowers, also known as marketplace lending.

Always check the interest rate, fees and charges before you sign up for any credit products. See borrowing basics and making repayments for tips on how to choose and manage your loans.

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Last updated: 18 Dec 2017