How to make all loan repayments

Home  >  Articles   >   How to make all loan repayments

When you apply for a personal loan, it is critical that you consider your ability to repay the loan in full and to make all the loan repayments on time. If you are unable to make a loan repayment, you should contact your lender at the earliest opportunity, as they may be able to discuss a number of options that could help you out.

What are the benefits of making all your loan repayments on time, and what do you need to do to ensure you are able to do this?

A Better Credit Rating

By making your loan repayments on time and in full, your credit rating will improve. While this is a benefit in itself, the knock-on benefits from having a great credit rating can have a huge impact on your financial future:

  • Lenders will see you as a proven responsible borrower
  • You may be able to borrow larger sums of money in the future
  • You may be able to access loans with a lower interest rate due to being a lower risk to a lender
  • Lower interest rate means you can save money when you borrow with lower repayments
  • You will find it easier to access other credit and finance products including a mortgage

As you can see, the benefits attached to being able to meet your repayment obligations are massive. Likewise, if you fail to make your loan repayments on time and in full, the opposite can happen and you may find it difficult to access credit for many years, depending on the extent to which you miss repayments. It is clear how worthwhile it is to ensure you can make all your loan repayments on time.

How should you ensure you are able to do this?

Make Sure There Is Always Money in Your Account

The simplest thing to do is to ensure you will always have money in your account when a payment is due. If a payment date is inconvenient for you, for example if it is just before you get paid or it is later in the month and you’re not confident with your budgeting, then speak to your lender to change it. Lenders will be happy to set up the repayment system that works best for you while ensuring they get paid what they should.

“your repayment schedule can also be a motivating factor as you will be able to see when the loan will be repaid in full”

Create a Schedule of Repayments

Although lenders will insist on a direct debit being set up, for your own records you should set up a schedule of repayments so you always know exactly when money is being taken. This will help you plan your finances and ensure you are always able to have money in your account, or to ask for any changes to your repayment schedule if necessary.

If you have had to amend your budget to take out and repay your loan, your repayment schedule can also be a motivating factor as you will be able to see when the loan will be repaid in full, thus giving you more disposable income each month.

Make Sure You Budget

Don’t forget to budget for your loan repayments! This is particularly important in the early stages of having a loan, as despite confirming that you can repay, passing the credit check, receiving and using the loan money, it is still common for people to forget that the lender is going to start taking repayments and ending up with a shortfall in their accounts. Ensure this doesn’t happen to you by planning your budget to include your loan repayments from the moment you are accepted.

Follow these pointers to ensure you make all your loan repayments on time, and can enjoy the benefits that an improved credit rating and a clean credit history can bring.

Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs.  Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

Things you should know

Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply.  No establishment, account keeping or early repayment fees will apply. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years.  For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).  For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).

*About Comparison Rates

The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Due to the fact NOW Finance does not charge any establishment, account keeping or early repayment fees, the true cost of the loan or Comparison Rate will always equal the interest rate quoted.


our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details.  In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW FINANCE is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030