Loans for 18 year olds

Find out what types of personal loans you could qualify for if you've just turned 18.

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When you first turn 18 you have little to no credit history, and you may have limited savings. So, what are your options if you are an 18-year-old who needs a loan? Read our guide to find out.

Compare loans for 18-year-olds

Click through the tabs below to compare loan options from a range of lenders. Be sure you check if you meet the eligibility requirements first, before applying.

Admiral Finance Secured Personal Loan

Admiral Finance Secured Personal Loan

From

13.95 % p.a.

rate

  • Borrow from $1,000
  • Flexible payment options
Security Logo

100% confidential application

Admiral Finance Secured Personal Loan

Apply today to get approved within 60 minutes for up to $50,000.

  • Max. loan amount: $50,000
  • Loan term: Up to 60 months
  • Turnaround time: 60 minutes response during business hours. Funds released within 24 hours upon approval
  • Fees: $12 monthly service fee, $125-$595 application fee depending on loan size, $40 early prepayment fee
  • Quick 5-minute application
  • Flexible options catered to all financial situations
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Promoted
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
6.69%-18.20%
$2,000
$200,000
3 or 5 years
$0
$250-$1,450 depending on the amount borrowed
A secured personal loan from $2,000 to $200,000 with repayment instalment options. Eligibility: Be an 18+ NZ permanent resident, earn $30,000 or more, have a good credit history and collateral/security.
8.90% - 20.95%
$1,000
$50,000
Up to 7 years
$0
$250
A secured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
13.95% - 23.95%
$1,000
$50,000
Up to 60 months
$12
$125-$595 depending on loan size
A secured loan from $1,000 to $50,000 with a quick online application process. Eligibility: Be an 18+ permanent NZ resident, have collateral/security, earn at least $450 per week.

Compare up to 4 providers

Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan

From

6.99 % p.a.

rate

  • Borrow from $2,000
  • 100% online
Security Logo

100% confidential application

Harmoney Unsecured Personal Loan

Apply today to get approved within minutes for up to $70,000.

  • Max. loan amount: $70,000
  • Loan term: Up to 60 months
  • Turnaround time: 99% of approved online applications funded in 24 hours
  • Fees: Establishment fee of $200 for loans from $2,000-$5,000 and $450 for loans from $5,000-$70,000
  • No early repayment fees
  • Personalised interest rates based on your circumstances
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Promoted
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
6.99% - 29.99%
$2,000
$70,000
Up to 60 months
$0
$200-$450 depending on loan size
Apply for an unsecured personal loan up to $70,000 with no early repayment fees. Eligibility: Be a NZ resident/citizen and have a good credit score.
9.15% - 22.95%
$1,000
$25,000
Up to 7 years
$0
$250
An unsecured personal loan up to $25,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.

Compare up to 4 providers

Ferratum Micro Loan

Ferratum Micro Loan

From

153.15 % p.a.

rate

  • Borrow from $100
  • Decision on your online loan in seconds
Security Logo

100% confidential application

Ferratum Micro Loan

New customers with qualifying credit can enjoy 45 days interest and fee free on their first short-term cash loan. Apply today to get approved for up to $1,000.

  • Max. loan amount: $1,000
  • Loan term: Up to 45 days
  • Turnaround time: Same day upon approval
  • Fees: $28 - $48 Establishment Fee
  • Easy online application
  • Flexible repayment schedule
Promoted
Name Product Maximum Loan Amount Loan Term Turnaround Time Loan Interest Minimum Monthly Repayment Establishment Fee Account Administration Fee
$5,000
Up to 368 days
Within the same day
From 149.65% p.a.
N/A
$21.23
N/A
Borrow up to $5,000 and enjoy a flexible repayment plan. Eligibility: Be over 18, have an ongoing source of income, working visa applicants accepted (conditions apply).
$600
Up to 42 days
Overnight, or within 60 minutes with fast payment
250% p.a
N/A
$58 (less for loans under $400)
$6.10 per month (paid in advance)
Cash Relief offers short term loans of up to $600. Eligiblity: Be over 18, working full time and not rely on welfare payments.

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Types of loans for 18-year-olds

When you become 18 you have various loan options you can consider, including the followng:

  • A loan from your current bank. One of the problems 18-year-olds encounter when trying to be approved for a loan is they have limited or no credit history. One way to try and overcome this is to apply to your current bank. You are more likely to have a history with your bank if you’ve accessed transaction accounts, travel cards and other products, so they may be more willing to give you a loan.
  • Unsecured loans for lower amounts. If your bank doesn’t have a loan you want to apply for, you can consider personal loans for lower amounts. The standard minimum amount for loans is usually around $5,000, but you can find some lenders offering $1,000. There are some lenders that even have loans on offer from $200. Compare your options and only apply for as much as you need.
  • Secured car loans. If you want to buy a car, secured loans are less risky for lenders because they can recoup their losses if you default. New and used car loans are available and you can get a lower rate than with an unsecured loan.
  • A guarantor. If you find you are ineligible for a bank loan, you could consider asking your parents, another relative or even an older, close friend to become a guarantor for you. This person takes on a lot of responsibility because they are agreeing to take on the loan payments if you can no longer make them. You can compare lenders that accept guarantors and joint application personal loans here.

How to compare your loan options

When choosing the right loan for you, consider the following factors:

  • The interest rate the loan attracts. Check whether the interest rate is fixed or variable and how competitive it is compared to similar products.
  • How much you’re able to borrow. Lenders offer varying minimum and maximum loan amounts, but what they offer ultimately depends on what you can afford to repay. This is determined by criteria set by the lender.
  • Other features on offer. Have a look at the different features on offer, which you can find out more about by reading the reviews on finder.com/nz It’s important to familiarise yourself with value-adding features of a loan. These can include the ability to make extra repayments, an offset facility or extended warranty on a car loan.
  • The fees you will be charged. There are different types of fees you may be charged, ranging from establishment fees to monthly and early repayment fees. Find out what charges are associated with your loan before signing on the dotted line.

5 tips to be approved for a loan at 18

  1. Show that you have savings. If you can show the lender you are good at saving they may be more willing to approve you. A steady savings history works best with your current bank as they can view your account information when you apply.
  2. Offer a deposit. Having a deposit when you apply for a car loan shows you are in a good financial position. The larger the deposit, the less you need to borrow, and the more likely you are to be approved.
  3. Get a letter from your employer. If you are only employed casually or have not been employed for long, a letter from your employer stating the security of your employment may help your application.
  4. Apply for a lower amount. Applying for too much when you have a limited credit history or don’t earn a high enough income can be a red flag to lenders and result in an automatic rejection. Instead, ask to borrow a lower amount.
  5. Apply for a secured loan. Secured loans, such as car loans, are less risky for banks because they can recoup their losses.

3 mistakes to avoid when applying for your first loan

While personal loans are helpful in many scenarios, it is in your best interest to avoid certain traps and pitfalls.

  • Not reading the fine print. Read through all of the loan documents before you sign anything and keep an eye out for ongoing account-keeping fees, early repayment fees and late payment fees. Make sure to read the terms and conditions document from start to finish.
  • Taking on a loan you can’t afford. When borrowing money, it is always important to use a calculator to find out what your repayments will be. If you can comfortably afford a certain amount on a loan, don’t feel tempted to borrow more, just in case circumstances change and you are unable to meet repayments.
  • Borrowing from an unlicenced lender. There are credit brokers and providers in New Zealand who operate illegally and target individuals who might not be approved for other loans. Make sure any lender you borrow from is licenced with the Financial Market Authority.

Pros and cons to consider before applying for your first loan

  • Gaining access to funds. A loan could give you access to the funds you need to make a purchase or investment.
  • Build up your credit history. Acquiring a loan allows you to establish and build your credit history. This ultimately affects your eligibility for other types of loans and access to better interest rates as well.
  • Limited loan amounts. If you have no or limited credit history you may only be eligible for a small loan, which may not be enough for what you need.
  • Risk of getting into debt. Taking on any loan comes with risk, so make sure to budget your repayments and don’t apply for a higher loan amount than you can afford.

How to apply for your first loan

After browsing through the table and finding a suitable loan, click the relevant link to go to the lender’s website and start the application process. Typically, to get a personal loan you will need to meet a range of criteria set by the lenders:

  • You must be at least 18 years old.
  • You must have a good credit rating and be able to provide proof that you can pay off the loan.
  • You may be asked to provide copies of your payslips, bank account statements and other credit contracts.
  • You also need to provide proof of ID, such as your driver’s licence or passport.

Frequently asked questions

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