Managing your finances is rarely straightforward and life can certainly throw a few curveballs, with unexpected costs cropping up without warning. We all need a little help now and then and if you are planning to apply for a loan for any reason, here are a few tips to maximise your chances of success.
- Check your Credit Score – Every Australian adult will have a credit score and it costs nothing to enquire, and if you have any outstanding debts, these should be cleared prior to making the loan application.
- Poor Credit Score – If you do have a poor credit score, that doesn’t mean your application will be rejected, especially with bad credit loans guaranteed approval in Australia from a leading online lender. Some lenders have working relationships with numerous finance companies, which allows them to be more flexible and they can usually assist people with a bad credit rating to obtain a loan.
- Online Solutions – Things have certainly changed a lot in the past decade regarding loans; no longer do you have to wait a few days while the finance company check you out; indeed, many people receive pre-approval within minutes of submitting the online application and you can’t get much quicker than that.
- Calculate your Maximum Monthly Repayment – If you already know the maximum monthly repayment you can afford, it will make things easier when you are looking at various loan packages. It is important not to overstretch yourself financially, as this usually leads to problems further down the road. You also need to make sure that the amount you are borrowing is adequate, then you can look at the various packages and choose one that best suits your lifestyle.
- Secured Loans – If, for example, you have some equity in your home, a secured loan might be the best solution, as this involves lower interest rates, which fluctuate, depending on the level of risk. It should be noted that should you default on a secured loan, you might lose your home.
- Reason for the Loan – Whether it is to finance a business venture or pay for next year’s holiday, it is best to be honest when talking to lenders, while the online lender is not interested in why you want the money and is more focused on assessing your ability to make the repayments.
Whether you are buying a new car or plan on carrying out some home improvements, search online for a leading Australian lender and see what they can do for you.