What You Need to Know About Personal Loan

23 Aug What You Need to Know About Personal Loan

Have you secured a personal loan and surprised you weren’t offered the advertised interest rate you were aiming for?

According to RateCity’s Australian Bureau of Statistics data analysis, Australians have borrowed $46.6 billion in personal loans over the past year but experts claim many are clueless of how applications are assessed and how this might affect their credit scores.

Lenders assess the loan applicant before giving an approval and offering an interest rate. They utilise a model called “risk-based pricing” where their lowest rates are only available to customers with excellent credit scores. It’s a common mistake of the customer to apply immediately once they see a low rate and so they get surprised when they’re offered a higher rate or worse, get rejected.

It is important to note that every application can put a mark on your credit file and has the potential to reduce your score even further. Your credit score affects your interest rate so it is highly suggested for you to know what it is. You can go to the Equifax (formerly Veda) website to check your credit report and score.

Consequently, knowing what your score is can be beneficial in accessing for a better interest rate.

If you want to avoid risks any further, seek the help of a professional. As a finance broker, I can help you with the process of securing a personal loan at a no cost to you. Using your credit score and necessary documents, I can help you look for a personal loan deal that is apt for your financial situation and need.

Call 0408 081 082 today or message me on Facebook.

Disclaimer: 

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.