Discover some tips on how to increase your chances of getting your boat loan approved.
Credit Check – Tips to boost your loan worthiness
Getting a loan can be as daunting as choosing the right boat. As well as seeing who offers the best rates, it’s worth assessing how attractive you appear as a potential borrower. Showing that you are a good risk improves your credit rating, saving you time and money.
Here are some things to remember before approaching a credit provider:
- Think carefully about the amount of money you wish to borrow. Choose a figure that is realistic and suits your means.
- New or near-new vehicles are considered a safer prospect by credit providers and can be used as security to support the loan. It is harder to secure a loan for an older vehicle because of its low resale value.
- Credit providers prefer borrowers in stable employment. You will stand a better chance of obtaining approval if you can demonstrate uninterrupted employment over a long period of time.
- Your bank account and income should demonstrate the capacity to meet repayments. If you can show a savings track record, it greatly improves your position. Check your credit record. Aussie Boat Loans will want to see your credit history before negotiating a loan. Check your credit rating file and credit ratings with previous credit providers and if there are errors ensure they are corrected before the current credit provider does its own check
- If you are a first-time borrower, consider using a guarantor to secure a loan. A guarantor underwrites the loan and agrees to pay off if the borrower is unable to meet repayments. Relatives with a good credit history can be good for this. Although first-time borrowers do not require a guarantor, they may improve your chance for finance approval, especially when applying for larger amounts.
Shopping for the best deal
Ask potential credit providers to improve their rates. Bargaining for a better deal is not a sin. Just like the new business and used-car markets, finance is a competitive industry. Credit providers should fight for your business.
Many banks and financiers offer a low rate but fail to mention ongoing fees and charges. This is often misleading, ultimately making your repayments equate to a much higher interest rate. Aussie Boat Loans has no ongoing or account keeping fees. When shopping for the best rate, always compare your total repayments.
There are many important questions to ask a financier before deciding the best deal.
- Are there monthly admin fees?
- Ongoing bank fees?
- Penalties for early payout?
- Is the loan daily reducible?
- Can extra payments of any amount be made, and at any time?
We challenge you to ask these questions and compare Aussie Boat Loans. We’re confident that Aussie Boat Loans has the most competitive finance packages in Australia.