- Handypay may market itself as a payment plan, but it’s really a personal loan offering up to $100,000 in finance with interest, credit checks, and standard loan terms.
- It originally targeted home‑improvement projects but Handypay provides funds for everything from cars and weddings to IVF and debt consolidation.
- Handypay’s rates and fees vary depending on your credit profile, with no ongoing fees but a minimum $250 establishment charge, meaning borrowers still need to compare it carefully against traditional personal loans.
Handypay is a personal loan offering from Handy Finance, the rebranded entity once known as OurMoneyMarket. It's marketed as a provider of flexible 'payment plans', though on closer inspection, these payment plans operate just like personal loans, offering up to $100,000 of finance.
What is Handypay?
Handypay initially offered financing options for homeowners looking to make improvements to their home, such as those wishing to add pools, renovate their kitchens or install solar energy systems.
These days it also offers loans for the likes of:
- Car purchases
- Medical procedures like IVF or cosmetic surgeries
- Education expenses
- Debt consolidation
- Wedding costs
Handypay CEO and co-founder Adam Sutherland told Savings.com.au the loans can be used for anything.
"Handypay is a simple, fast and low cost solution way to purchase what you need today and pay for it over time, in a way that is more tailored to your budget," he said.
"We work with large vendors in areas such as massage chairs, medicine, and education, however the target market is home improvement and home renovations and all things associated with the home.
"But the funds are released to the customer so it's theirs to spend."
Handypay personal loan: Rates, fees and features
Handypay interest rates
Like most personal loan lenders, Handypay's interest rates scale depending on your application.
If you have a good credit score, then you can get a particularly low interest rate compared to many other personal loans on the market. But those with a bad credit history may find their interest rate significantly higher than those advertised on the finance provider's website.
Handypay fees
Handypay doesn't charge ongoing fees on its loans, although there is an upfront fee to be aware of. This fee is scaled based on how much you're borrowing, representing between 0% and 6% of the loan amount, with a minimum charge of $250, and is based on your credit score.
That means if you're looking to borrow the maximum $100,000 and have a particularly poor credit score, you could feasibly be hit with a $6,000 establishment fee.
There are also late payment fees ($35) and direct debit dishonour fees ($25) to be aware of, as well as fees for loan variations, the production of hard copy documents, and for cancelling a loan prior to it being funded.
Handypay features
Handypay says it offers the following features to customers:
- Large loan amounts up to $100,000
- Fast, online approval, with decisions made in minutes
- Longer loan terms up to 10 years for green products
- No ongoing fees
- No penalties for making additional repayments
"Unlike many other non-bank personal loan providers, we offer weekly, fortnightly and monthly repayments, meaning that we're able to align the payments to a customer's pay cycle," Mr Sutherland said.
"This is a great way to protect customers' credit scores and avoid any late fees."
Handypay: Credit checks and responsible lending
Like most reputable providers, Handypay does check your credit score when you apply, and it can impact your application. But according to Mr Sutherland, your repayment and employment history are more important.
"We understand that sometimes people can have hiccups and often don't find out what a credit score is until it's too late," he said.
"We are more focused on your repayment history over a longer period of time, and look to reward customers who have a decent track record of good repayment performance with the best possible rate on a personal loan."
To apply for any of Handypay's products, customers must:
- Have a regular income earned through employment or self-employment
- Have a decent credit history with no prior defaults or bankruptcies
- Not be in hardship with another lender
- Be at least 18 years old and an Australian citizen or permanent resident
How does Handypay compare to other personal loans?
In terms of interest rates, Handypay compares pretty well. However, it doesn't clearly outline the application fee a borrower may face, which could be key to its competitiveness.
When comparing Handypay's products with other loans, consider how it stacks up with multiple other products based on:
- The fees, or lack thereof
- How low the interest rate is
- The flexibility of the loan
Consider if you'd like to make extra repayments or pay weekly instead of monthly, for example. - And of course, whether other products could be more suitable
Depending on your use case, you might be better off refinancing a home loan or taking out a credit card, for instance.
If you're using it for home improvements, it's possible you could use a construction loan instead, which would likely have a lower interest rate.
Personal loan pros and cons
Personal loans aren't for everybody. They may have some advantages:
- Flexible access to funds to buy what you want, when you want it
- The ability to use leftover funds for other purchases
- Lower average interest rates than credit cards
But personal loans can also have high interest rates and other fees.
Buying something outright will likely be much cheaper than taking out a personal loan, which can lead to thousands more in interest charges and fees.