Essential Simple Tips for Securing Your Ideal Loan Successfully

Simple Tips On Getting Your Loan

What are some simple tips for getting a loan?

So, you want to get a loan? Here are some simple tips that might help you make more informed decisions about the type of loan you buy, and from whom.

As you would probably be aware, a loan varies according to:

The amount borrowed;
The interest rate;
The type of rate (fixed or variable);
The term (length in years) of the loan;
Deposit (downpayment);
Associated fees (broker, origination, prepayment etc.);
Insurance required by the lender.

When you get a loan, you are buying money for more than it cost the lender. Simple.

Car Finance- Quick & Easy

If you are in the market for a new or used car, then we're in the market to help you arrange the money. Our car loan & leasing finance service is backed by a national panel of car loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation - and help you through the approval and settlement process. No charge to you - and no obligation to proceed with any recommendations offered.

... start your car loan here ...

If you are comparing loan offers, it is a mistake to consider the interest rate alone. Depending on the type of loan, there may also be arrangement fees and *prepayment penalty* clauses to consider. Therefore, you should be sure to take into account the total cost of your loan when comparing options - and definitely before committing.

Keep a copy of every cheque you write for your loan. If you call your lender about your loan, make sure you get the full name of the person with whom you speak. Make a note of it. You may be dealing with a large bureaucracy, and will need to refer to this conversation later.

Do a budget. Make sure you use realistic figures. Keep all of your receipts, or keep a record, for all of the money that you spend for a month. Use that to help you compile the first draft.

Be prepared to review and update it regularly. A co-ordinated budget allows you to get the most loan for your money without beggaring yourself, while getting rid of wasteful spending.

Where possible you should avoid loans that contain combinations of the following attributes:

Short-term;
High up-front fees;
High rates;
Balloon payments;
Excessively high late fees;
Prepayment penalties.

These loans can potentially swallow up any equity you may have, and ruin your financial position.

Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. There is no need to agree get a loan which contains any significant prepayment penalty, if you have good credit. One of the smartest things someone can do with a loan is to prepay it.

All you need to do is contact your lender and ask for its prepayment procedure. Then, every so often, check the loan balance the lender sends you, to make sure the additional payments have been accounted properly.

Be wary of promises of getting a loan quickly. Many borrowers are told that their loans will close within a particular time. They don't make payments on existing debts, in anticipation of the new loan.

After several delays, they can become delinquent, with no money from the new loan. Some mortgage companies then order new credit reports, and charge the borrowers higher fees, and a higher rate, because of the delinquent loans, which resulted from delays caused by the loan company!

Submit a neat application form; it shows you're business-like and efficient. It will be read and assessed by a human being; appearances count.

Only pay up-front fees to well-known or highly recommended institutions. While most institutions are reputable, it is always best to be cautious.

Don't sign documents without reading them. As soon as possible, before you close the deal, review the documents you'll be signing, and make sure you understand them, so you won't have to sign them in a hurry.

Keep your credit line as small as possible. You could be turned down for other loans, even when your credit line has a zero balance, since a large credit-line indicates a large potential outgoings.

If your spending is out of control, don't get a home equity credit line to pay off your credit cards. Don't put your home at risk by spending large amounts on your credit cards, after paying them off with your credit line.

Pay off small debts before the due date. Cancel credit cards you are not using. Loan officers tend to count the total line of credit - even if you owe nothing - as a liability. They will only cloud the picture. Close credit lines that you have no intention of using in the near future. Also look closely at the interest rates and fees, when deciding which cards to keep.

Choose a lender with a clean record with the industry watchdogs in your country. The mortgage industry receives a great number of complaints against it. In Australia, mortgage and finance brokers of any kind must be licensed with A.S.I.C, and all licensing information for brokers can be found on the A.S.I.C. website.

Shop for rates when the market is calm. Rates change from day to day, so compare lenders. The quotes you get should all be from the same time period.

Check your payments are correct - Do the mathematics. There's a one in ten chance you could be paying more than you should.

If you find yourself in a dispute with a lender about a payment or another issue, don't send correspondence to the same address you send your payment. You need to deal with the decision-makers, not the account clerks.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Debt Consolidation Articles

The Reality of Debt Consolidation: Does it Affect Your Ability to Borrow in Future?

Welcome to a comprehensive guide aimed at dismantling the common myths that cloud the concepts of debt consolidation and debt reduction. Amidst widespread financial stress, debt consolidation emerges as a popular strategy for Australians in search of relief from their monetary burdens. - read more

How to Craft a Foolproof Financial Strategy for Debt Management

Managing debt is a crucial aspect of maintaining financial well-being, yet it can often feel like a daunting task. Understanding how debt works and its potential impact on your life is the first step toward gaining control of your finances. In this section, we will delve into the intricacies of debt and outline why a solid financial strategy is essential for effective debt management. - read more

How to Avoid Falling Back into Debt: Post-Consolidation Best Practices

Welcome to our guide on how to avoid falling back into debt after consolidating your debts. Debt consolidation can be a fantastic way to manage multiple financial obligations, combining them into a single, more manageable payment plan. But the journey doesn’t end there. - read more

Financial Planning 101: How to Get Ahead of Your Debt

Welcome to Financial Planning 101: How to Get Ahead of Your Debt! If you're feeling overwhelmed by your financial situation, you're not alone. Many people struggle with managing debt and finding ways to achieve financial stability. - read more

Debt Negotiation 101: How to Lower Interest Rates and Reduce Payments

High-interest debt can feel like a relentless cycle for many in Australia, often making it challenging to gain financial ground. Whether it's credit card debt, personal loans, or other forms of borrowing, the compounded interest can quickly become overwhelming. Fortunately, debt negotiation presents a viable solution for those caught in this dilemma, offering a ray of hope to reduce financial burden. - read more

Finance News

ASIC Releases Updated Legislation for Financial Advice

16 Sep 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has introduced a new, consolidated legislative instrument that relates to financial advice. This update follows through on ASIC's May announcement regarding the remake of three existing advice-related instruments. - read more

Commonwealth Bank Challenges RBA's Card Fee Reform

12 Sep 2025: Paige Estritori

Australia’s leading financial institution, the Commonwealth Bank of Australia, has openly criticised the Reserve Bank of Australia (RBA) for its calculations related to a proposed reduction in debit and credit card transaction fees. The RBA suggested that the reform would save Australian businesses $1.2 billion annually and benefit the majority of companies, a claim that the Commonwealth Bank strongly disputes. - read more

Ongoing Consumer Spending Surge Threatens Future Interest Rate Cuts

11 Sep 2025: Paige Estritori

Amid a period of robust consumer spending, Australia's mortgage holders may face limited future interest-rate cuts. The Commonwealth Bank has observed Australians increasing their spending over the last six months, spurred by rising incomes, a robust job market, and previously lowered interest rates. - read more

CSLR Funding Concerns as Special Levy Decision Remains Pending

11 Sep 2025: Paige Estritori

The Compensation Scheme of Last Resort (CSLR) recently highlighted potential delays in compensation payments due to insufficient special levy funds. In July, the CSLR's proposed FY2025–26 levy plan allocated $67.29 million for financial advisers, surpassing the $20 million limit set for the subsector. This shortfall of $47.29 million prompted the Treasury to initiate a consultation in August to determine funding solutions for the excess levy. - read more

Retiree Surge to Drive Demand for Financial Advisers in Australia

10 Sep 2025: Paige Estritori

A recent study by Adviser Ratings, as outlined in the 2025 Australian Financial Advice Landscape Report, indicates that the number of financial advisers in Australia will need to increase significantly. From the present count of 15,500 advisers, the industry is expected to require more than 50,000 over the next thirty years to cater to a growing retiree population. - read more

Click for more Finance News