Essential Simple Tips for Securing Your Ideal Loan Successfully

Simple Tips On Getting Your Loan

What are some simple tips for getting a loan?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Business Loans Articles

Startup Loans vs. Business Lines of Credit: Which is Better for Your Company?

Starting a new business is an exciting journey, but it often requires a significant amount of funding to get off the ground. Whether it's for purchasing equipment, hiring staff, or marketing your new venture, securing the right type of financing is crucial for success. - read more

Secured vs Unsecured Business Loans: Which is Right for You?

In Australia, business loans are a crucial tool for companies looking to grow, expand, or manage cash flow. From small enterprises to large corporations, securing funding can mean the difference between success and failure. The financial landscape is diverse, offering various loan options tailored to different needs and business models. - read more

Unlocking Cash Flow: How Equipment Leasing Can Benefit Your Australian Business

In the ever-evolving landscape of Australian business, equipment leasing has emerged as a pivotal financial tool for companies across the spectrum. Whether you're a small start-up or a well-established corporation, the agility to pivot and adapt to market changes is critical. This introduction seeks to shed light on the concept of equipment leasing and its significance in bolstering the operational efficiency of Australian businesses. - read more

Maximizing Your Chances of Approval for a Startup Loan in Australia

Securing financing is a pivotal step for any startup looking to establish itself and grow. In Australia, the startup lending landscape is buoyant, offering a mix of traditional and innovative financing options. The financial ecosystem is robust yet competitive, and understanding how to navigate it is crucial for new business owners. - read more

From Setbacks to Success: Overcoming Credit Challenges and Fueling Business Growth

In the dynamic world of business, navigating credit challenges is a reality for many Australian business owners. These challenges can stem from various sources, including unpaid customer invoices, unexpected expenses, or the complexities of managing cash flow. Such hurdles often come at inopportune moments, leading to recurring stress for entrepreneurs trying to maintain a stable financial standing. - read more

From Application to Expansion: The Complete Roadmap to a Successful Business Loan Journey

For many Australian entrepreneurs, a business loan is a vital step towards achieving growth and success. Access to capital can fuel expansion, help manage cash flow, and provide the necessary resources to capitalize on new opportunities. However, navigating the journey from application to approval, and eventually, to expansion, presents its own set of challenges. - read more

Customized Leasing Solutions: Finding the Right Terms for Your Business Needs

Equipment leasing presents a strategic financial opportunity for Australian businesses seeking to maximize operational efficiency without the hefty price tag of purchasing. As many companies strive to stay competitive and agile in a bustling economic landscape, the importance of flexible asset acquisition cannot be understated. - read more

Finance News

Non-Bank Lenders Advocate for Inclusion in Economic Resilience Program

09 Jun 2026: Paige Estritori

Non-bank lenders are urging the Australian government to include them in the $1 billion Economic Resilience Program, emphasizing their crucial role in providing financing to small and medium-sized enterprises (SMEs). This program aims to bolster businesses affected by economic challenges, and non-bank lenders argue that their participation would enhance the program's effectiveness. - read more

Brokers Adapt Strategies Amid Shifting Commercial Finance Landscape

09 Jun 2026: Paige Estritori

As the commercial finance landscape in Australia undergoes significant changes, brokers are adapting their strategies to better serve small and medium-sized enterprises (SMEs). Rising costs, regulatory shifts, and evolving economic conditions are prompting brokers to refine their approaches to meet the diverse financing needs of businesses. - read more

RBA's Third Rate Hike in 2026: Implications for Australian Businesses

25 May 2026: Paige Estritori

The Reserve Bank of Australia (RBA) has raised the official cash rate by 0.25 percentage points to 4.35% on 5 May 2026, marking the third increase this year. This decision aims to address escalating inflationary pressures affecting the Australian economy. - read more

High-Risk SMEs Escalate Search for Financing Amid Stricter Lending Criteria

25 May 2026: Paige Estritori

Recent data indicates a notable trend among high-risk small businesses in Australia: an increase in 'credit shopping,' where these enterprises apply to multiple lenders in pursuit of financing. This behaviour has become more prevalent as overall business credit demand has softened, with a marginal decline of 0.4% in the first quarter of 2026. - read more

Westpac's Resilient Performance: A$3.4 Billion Profit in Challenging Economic Times

25 May 2026: Paige Estritori

Westpac Banking Corporation has reported a statutory net profit of A$3.4 billion for the half-year ending 31 March 2026. This performance underscores the bank's resilience amid a shifting economic landscape marked by rising interest rates and global uncertainties. - read more

MYOB and Mastercard Introduce Open Banking for Australian SMEs

17 May 2026: Paige Estritori

In a significant development for Australian small and medium-sized enterprises (SMEs), MYOB has partnered with Mastercard to roll out Open Banking capabilities. This initiative aims to provide SMEs with faster, safer, and more reliable bank connections, streamlining financial management processes. - read more

ScotPac Partners with UBS to Boost SME Funding Capacity

17 May 2026: Paige Estritori

ScotPac, Australia's largest non-bank business lender, has announced a new warehouse facility agreement with UBS AG Australia Branch. This strategic partnership aims to strengthen and diversify ScotPac's funding platform, enabling the provision of innovative financing solutions to small and medium-sized enterprises (SMEs) across the country. - read more

Click for more Finance News

Need Help Finding a Loan?

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Credit Score:
A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.