Personal loans for students

Economists should include money in the hierarchal chart of basic necessities, too, because money has apparently become crucial for everyone. Even if you want to stay at home to relax for a couple of days, you will need money for that.

Australia is recognized as the number one choice for international students and can be expensive for students as well. That is why many students want to apply for a student loan to make their ends meet. They need all the money they can get to pay for the expenses while staying in Australia. Applying for a student loan in Australia can be tricky for international students, but it is not impossible. However, some questions need to be answered before applying for a loan in Australia. Let us dive into that discussion and find out all the possible answers related to student loans in Australia for international students.

Can an international student apply for a loan?

Although everyone knows that Australian banks lend money to almost everyone and provide financial assistance to the students, some details are still unclear as to whether Australian banks lend out money to international students residing in Australia under a student visa. The student loan in Australia is referred to as HELP (Higher Education Loan Program). The Australian government started it to provide financial assistance to the students who are permanent residents of Australia. Sadly, international students are not eligible for the HELP, but this is not the end of the world. There are other options through which international students can get a student loan to meet their everyday expenses while studying in Australia. Those options are borrowing money from the university and private banks.

Bear in mind, there are some other expenses other than covering your tuition fees, including boarding, living expenses, insurance, and others. That is why it is recommended that you must spend some time and calculate that how much financial help you need to cover your expenses. Only after that, you should apply for a loan.

There are various types of loans available in Australia for personal use such as secured personal loans, unsecured personal loans, car loans, overdrafts, credit cards, instalment-based payments and short-term loans. We will be only discussing credit card and car loans as these may be easier options for students to get approval.

Can an international student apply for a credit card?

A student credit card might be a solution for all of the problems that you will face in the future after stepping into Australia. If you have recently started studying in Australia and are constantly thinking about making your ends meet because of all the expenses, let us tell you that you don’t have to worry about that. It happens often, and it is quite challenging for a student to cover all the educational costs and other everyday expenses. But, a student credit card can help you in situations like that. However, as a student, you need to be wise about your spending habits and carefully use your credit card. Multiple banks offer credit cards to international students, such as ANZ Credit Card, NAB-Low Rate Credit Card, Commonwealth credit card, Qantas American Express Discovery Card etc.

After choosing these credit card lenders, all you have to do is apply for a credit card online. The online application takes hardly 10 minutes to process, but before applying, make sure that you meet the eligibility requirements. Keep in mind that these requirements are different for different banks, but these generally include that you must be at least 18 years old. For Australian students, if you fall into the age group of 16 to 18, you can apply for a student credit card. You will be considered as a supplementary cardholder on behalf of your parents’ account. Some banks in Australia provide a credit card to international students, but there are specific demands that need to be met beforehand. International students have to provide valid visa status and have to provide their financial details. Apart from that, you also have to prove that you have enough money in your Australian bank account and are employed in Australia.

How many types of credit cards are being offered to students in Australia?

There are numerous types of credit cards being offered by students who are residing in Australia. Each card has its own benefits and its own purposes. There are some cards that offer a lucrative discount when it comes to shopping, and then there are some that are suitable only for travellers. Some cards even offer cashback if you use it for lifestyle purposes. Always ensure to evaluate your financial needs before applying for a credit card in Australia. There are many online websites that compare different credit cards. Make a decision and pick out the best card. For a brighter future in Australia, it is wise to keep your credit score in check while you are a student. It is an arduous task to spend money in Australia and then pay it back on time. Paying back the borrowed money on time can help you in improving your credit score. Ensure to keep your card active by making payments on time, and your spending limit will be increased automatically by the bank.

There are numerous cards being offered by banks based on purposes such as low annual and monthly fees, lower rates, zero per cent interest, balance-transfer credit-card etc. Though a student credit card is suitable for international students, they cannot transfer credit to any other account by using it.

Can an international student apply for a car loan in Australia?

Australia is a vast state, and it is pretty impossible for one to move from one place to the other without one’s personal wheels. But if you are an international student and are residing in Australia on a student visa, things can get tricky for you if you are applying for a car loan in Australia. Not every bank in Australia allows lending car loans to international students. Car loans to international students are dependent upon their visa type. National Australia Bank is currently offering car loans to international students but on certain conditions. Another car loan lender for temporary visa holders is Savvy. They demand an employment certificate from the student to be eligible for a car loan. Apart from that, an international students must be making enough money so that they can get their instalments on time. There are certain limitations on loans even then, which are not easy for an international student to meet, but acquiring a car loan is not impossible. A student has to provide some proof that he has the earning capacity and must persuade the lending officer that he is earning a handsome amount of money and can pay back the instalments on time.

Should an international student apply for a loan?

It is essential for an international student to make their ends meet, and for that, he/she may need to apply for a credit card and a car loan in some cases. It has been discussed earlier that Australia is a vast state, and it is pretty expensive too. Therefore, to meet everyday expenses and to go from one place to another, one must have a car. Apart from a $500 credit card and a car loan, it is advised that international students should not burden themselves by acquiring loans. Because obtaining loans and credit cards is the easy part. The hard part is when you have to pay the money back. And if you do not pay back on time, it will affect their credit score, which will lead to a bad credit score that will haunt them in the future. Even for the loans that have been discussed above, students should be conscientious and assess their financial needs before applying for one. It is recommended that unless and until an intentional student has a handsome job and is earning sufficient money from it, they should avoid taking any financial assistance from anywhere other than applying for a credit card.

What is a credit score, and what happens if it drops?

A credit score is a set of numbers that defines a person’s creditworthiness. A higher credit score means that the person is trustworthy and can be lent a certain amount of money. In other words, a high credit score means that you can acquire a loan quickly. There are numerous things that can hurt your credit score, such as missing your loan or credit card repayments, paying bills after the due date, applying for too many credits, and payday loans.

If your credit score drops down, then it will mean that it is risky for the lender to provide you with any kind of loan, as you will not make payments on time as you did in the past. Even if the lender lends you money, they will charge higher interest rates that will increase stress on your financial well-being. In some cases, your loan and credit applications will not be approved.

You will face difficulty in finding an apartment as most landlords look at your credit score before renting you an apartment. Utility companies will ask you to provide a security deposit if your credit score is terrible. This means that you will have to pay a hefty sum of a security deposit before establishing electricity, cable or phone service.

That is why it is advised not to spend too much money and avoid getting loans. Keep your finances in check and spend money cautiously.