Tuesday 19 November, 2019
We keep hearing the same message from the marketplace – lenders are saying “No” more and more frequently. Credit is getting harder and harder to get. Customers are no longer given good service, instead, they are interrogated as if they are applying for a job with the lender – instead of a loan!
Recent sentiment discussed by many key people in the finance industry indicate that the rate of declines are growing quicker than applications.
In a time where our Government is trying to stimulate the economy by setting the cash rate to a record low and reducing assessment rates to make it easier for borrowers to access more credit than previously possible… It’s a little odd that many people are actually finding it more difficult to borrow than ever before!
Fortunately, Finance Brokers Tasmania are here to help. Not only are we Tasmania’s most experienced brokerage firm but we truly believe that by educating our clients we can do our bit to help our community! Accordingly, we are pleased to present five easy tips that you can implement in order to boost your likelihood of a yes!
Lenders are often asking to see statements for liabilities – even if you aren’t refinancing! This means that if you have been charged a $10 dollar “late fee” because you forgot to transfer the money on time; your application may be declined. A great way to make sure you keep up to date is to set yourself a reminder on your phone or arrange a direct debit with the lender.
We’ve all forgotten about that pesky subscription (or gym membership) coming out a day before your pay clears, right?! Many lenders are now asking for transaction account statements as evidence of a customer’s ability to manage their regular expenses – and if your account is frequently overdrawn (in the red) then it’s possible that this is where your application will end.
We certainly don’t presume that we have the right to tell our clients how to live, but if you are planning on applying for finance it might be worthwhile stopping and thinking about closing down as many unused credit cards/store accounts/afterpay/zip pay accounts that you can. Even if you aren’t using them, and don’t own a cent on them – these liabilities will reduce how much you can borrow. That’s a fact!
It’s surprising how easy it is to dismiss what that night out actually costs if you are just tap-tap-tappin’ away. Next time you head out try leaving your card at home and taking cash instead! Not only will this limit your spending, but it will also alleviate any awkward questions that you may encounter if you have to show a lender your transaction records.
Do you need to buy a vowel? You know what to do if you really want a 'yes' to add to your success! Call you broker.