Most lenders typically prefer borrowers to be in full-time employment for a number of reasons:

• Unstable hours and income - A casual employee’s working hours are not guaranteed and can change from week to week. Consequently, their income is unstable, regardless of their rate of pay. For example, while a casual worker might earn $1,000 in a good week, they might earn half of that the following week if their employer feels there is less work that needs to be done that week. Lenders generally value work stability as they see it as an indicator of one’s capacity to service a loan.
• Lack of paid entitlements - A casual employee is not entitled to sick leave or annual leave. This means they will not be paid if they need to take time off work, whether it is for a holiday or because of other circumstances outside of their control. This can affect their ability to meet repayment obligations.

However, this doesn't necessarily mean casual employees can’t obtain a personal loan.

Borrowers with higher credit scores are typically looked at more favourably by lenders than borrowers with low credit scores. This is because credit scores provide lenders with an insight into your borrowing behaviour and allow them to assess the level of risk you may pose should they approve your application.

Casual workers with excellent credit scores tend to have more options available to them when searching for a personal loan as they are able to use their credit history to strengthen their application.

If your credit score is less than excellent, you might consider some of the ways you can improve your score before applying for a personal loan.

Though casual employees could have a hard time getting a personal loan approved by a major bank or financial institution, many smaller banks and non-traditional lenders may consider personal loans for casual employees who meet their eligibility criteria. While the specific criteria will depend on the lender, it could include the following:

• A minimum age of 18.
• A minimum annual income, which would vary with each lender.
• A minimum period of continuous employment at your current employer, generally between six and 12 months.
• An acceptable credit rating.
• A minimum amount left over after regular expenses to prove to the borrower that you can service repayments.

The personal loan application process for casual employees is slightly different from that of full-time employees. Casual workers seeking a personal loan may need to consider several details before signing on the dotted line.

• Interest rates - As a casual employee is generally considered a higher-risk borrower, personal loans for casual employees might attract an interest rate that is higher than usual. This is to reduce the risk factor for the lender. For the borrower, it could mean higher weekly or monthly repayments. To be sure you are able to meet these repayments before committing to the loan, consider using RateCity’s Personal Loan calculator. 
• Assessable income - Lenders know that the income of a casual employee can vary, and in some cases this fluctuation can be significant. To determine a casual employee’s income, rather than looking at their weekly or monthly earnings, lenders may instead assess their income over a three-month period and annualise this figure. For example, if you earned $9000 in the past three months, the lender may assume your annual income is $36,000 for the purpose of the assessment, even if you may potentially earn more or less than $9,000 in the next three months.
• Income consistency - On the flip side, if you can prove to the lender that your income is fairly consistent despite being a casual employee, you could potentially have a higher chance of getting approved and your borrowing power may be strengthened. While casual employees have no guaranteed working hours, some could be in a situation where they consistently work 38 hours a week, just like a full-time employee. In this case, the lender may view this favourably. 
• Essential documents for casual employees - As with all personal loans, casual employees applying for a personal loan will have to provide the lender with various documents to prove their eligibility. These will vary depending on the lender, and could include the following:
• Proof of identity, such as a passport or driver’s licence
• Proof of income, such as recent payslips and tax returns/notices of assessment
• Proof of financial status, such as bank statements and credit card statements

For advice that’s tailored to your circumstances, consider reaching out to a financial adviser or personal loan broker.