You’ve probably noticed ads on television for online personal loans. If you dig a bit deeper you’ll find these loans tend to carry high interest rates, which can make them more expensive over the long term.
These ‘payday’ loans are usually up to $2,000 and must be paid back within 16 days to 12 months. ASIC has a good article warning consumers about payday loans here.
Even though it may seem easy to secure a personal loan online, it’s easy to argue they are not worth the extra cost.
So how can you make sure your personal loan does not come with high interest rates? And at the same time, ensure the loan matches your goals and budget?
Here are our top tips for securing a personal loan.
It may seem easy to apply for a personal loan online, but the fact is, you’re more likely to secure a high interest loan that is harder to pay off.
With this in mind, we encourage you to visit a broker in person to secure a personal loan.
Our brokers have access to many different personal loan products. And, they’re not aligned with any specific lender, so the loan you are recommended is based on what suits you – not because we have a vested interest in recommending it.
We also look at your financials, and make sure you have the capacity to pay of your personal loan. We don’t want you to be stressed, which is why we always make sure your loan matches your budget.
We also ask important questions about your financial goals, so the loan you end up with matches them. Altogether, this means you get a personal loan that saves you more, and aligns with your objectives.
As a result, you have peace of mind that the personal loan you end up with is right for you. We believe that this peace of mind is worth more than the ease of finding a high interest loan online.
According to finder.com.au, bad credit history is the number one reason why personal loans are not approved.
It’s worth checking to see what your credit score is before applying for a loan, as there are often easy ways to repair a poor credit score.
Your mortgage broker should be able to do this credit check for you. Plus, they can tell you what you need to do to improve your credit rating.
Sometimes going away and improving elements of a credit score can make all the difference to your loan success.
The catch 22 is that applying for credit and having it refused may lower your credit score even further.
So take the time to visit a good mortgage broker, who can run the requisite checks and make sure you are in a good position before you apply and potentially lower your credit score.
Different kinds of bad credit listings include:
Head here for the source on the above facts.
Talk to us about securing a personal loan that is right for you and saves you more. Don’t risk a bad credit score or unnecessarily high interest rates by applying online.
Contact a Capita broker near you about securing a personal loan that matches your objectives.
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