Top Tips to Expedite Your Loan Process

Different steps are there that can be taken for ensuring smooth processing of your loan application. Make sure that your spending is cut down significantly prior to applying for the loan. It doesn’t necessarily mean that you should be frugal all the time, but you should make sure that you draw your foot back from anything unnecessary. To expedite the loan process, make sure that you follow below mentioned tips.

  1. Check credit report prior to applying for the loan

It is necessary for borrowers to get well-versed with all entries present on the credit report prior to even sitting down with a loan broker or consultant. If you have had history of defaulting on payments like your phone bill, the credit history that you may have will be a hindrance for you during your loan process. Any blemishes on the credit report must be corrected first.

  1. Get all necessary documents organized

This thing is pretty obvious. For a swift application approval, it is necessary that you gather all required documents so that it may not hinder your application process. Every loan application needs specific documents to be submitted for processing and if you fail to do so or miss any of the required documents then you will do nothing good to your chances of getting approved. All it will do would be to delay the process.

  1. Have steady history of employment

It is often preferred by the lenders that the applicants should have good employment record or steady history of employment. If the borrower has a habit of changing jobs on a frequent basis then the lender might ask for an explanation as to why he does so. Failing to provide good enough explanation may either get the applicant rejected or it may halt the application process. So, make sure you have steady employment for last year or so to ensure there are no hindrances during the process.

  1. Know what is needed

Usually people misread information that is provided to them through application forms and this leads them to either failing in providing enough documents required for application processing or coming up with wrong documents that are not needed at all. In order to speed up this process of loan application and avoid any kind of hassles, ensure that you know exactly what you are asked to provide and do not miss out on any single thing.

Small Business Minister Vows to Cut Lending Costs

Federal Small Business Minister Bruce Billson has promised to cut lending costs for businesses. Billson said that as a former gallery owner, he can sympathise with entrepreneurs and understands the challenges that they face.

Billson said that lending costs for businesses have risen by 200 basis points above the cash rate in the past four years. Noting that 80 per cent of small business loans are secured by home loans, Billson offers the new “Son of Wallis” financial enquiry as evidence of his government’s commitment to improving business banking competition.

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Lenders Begin Raising Fixed Home Loan Rates

Recent reports suggest that the rise in fixed home loan rates may be a sign that the Reserve Bank’s (‘RBA’) series of rate cuts are coming to an end. The country’s largest home loan lenders have begun adjusting their fixed home loan rates in expectation of an end to the RBA’s rate cuts.

In the past few weeks, all four major banks have raised some of their fixed home loan rates, as the housing market heats up. For example, the Australian Bureau of Statistics reported that building loans for new residences jumped by 14.4 per cent in September.

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How are loans processed?

In today’s age of inflation, nearly all of us have to depend on banks and other financial sources to get some financial aid, when needed. Today, all of us need loans in order to achieve various things in life. It is a simple procedure of applying for a loan in a bank. They will naturally conduct background check and other formalities before processing. Continue reading

Tips to applying for business loans

Business loans

Business loans are needed by almost every business owner, either to start his business set-up or to expand the unit further. It is always wiser to go in for a business loan rather than utilizing your own capital to start the business. Business loans are easily available in the market and all you need to follow is a basic procedure, in order to get the loan amount sanctioned. Continue reading

Are self employed loans right for you?

First things first. Who would you call self-employed?A self-employed person is someone who is working for himself, as his own boss, and is the sole proprietor of his earnings. However, the self-employed must pay some taxes to the State, just like the owner of a business has to. It is a profitable profession, and one can get hired by companies looking for self-employed people. One can follow one’s own rules, choose their product and comfort zone, and engage in a business without reporting to anyone higher up. The income however is erratic, and usually self-employment is opted for in short intervals of time. A bank loan can help, but it is not always the best idea. Continue reading

Tips to Selecting a Loan Company

Life continues to change and so do its requirements. Hardly a single person would be there who never had to feel any kind of financial sufferings during the life. Debt is owed by almost everyone or people may have to take some loan for purchasing something or simply for meeting the needs during some unexpected financial crisis. To make big purchases such as car or home, people usually go for the home loan and auto loan. When one has to fulfill the immediate and smaller financial requirements then personal loan or payday loan can turn out to be the best as well as most feasible option to go for. So many companies are there that offer personal loans and they are always ready for helping you out by lending loans for managing the abrupt financial crisis. Continue reading

How do late payments affect my credit history?

There come certain instances in life when you have to make arrangement of money very quickly and you do not think of anything but to take loan from a reliable company to fulfill your requirement. In the hustle of arranging money you may forget about one of the most things to consider before taking loan, which is the appropriate planning to return the loan amount. Any flaw in the plan to return the amount taken as loan may cause a delay in returning it and you may wonder how do late payments of loans affect my credit history? The effects of late submission of your loans may vary depending upon the type of loan taken.

Various kinds of loans and their late deposition effects

There are some loans which are allowed to people even after severe economic disturbance, such as, divorce, bankruptcy or repossession etcetera. The loans are lent to every applicant on similar criteria and the effect of late payment hardly affects the credit history in this respect, however, the customers who payback their quick loan money on time enjoy certain benefits in the form of lenience in repayment of the money. Before taking money from any lender make sure it is reliable source. You should also always try to take the amount you need only. Taking loan more than needed may cause difficulties for you in returning process.

Benefit to apply for the amount needed

Whenever you need money in the form of a personal loan, make sure that you apply for the amount exactly equal to the one you need at the moment. The first advantage of doing so is that you would not need to return the company an extra amount of money. The second advantage is that the percentage of interest will be least and you would not consider it a burden in future to pay the money lent by the company. The third advantage is that the chances of delayed payment will get reduced considerably and you will be able to make payments on time.

Details of effects of delayed payments

There are some loan types which are not granted on the basis of your income and monthly salary. The lender needs guarantee that you would be able to repay the amount lent by him in time and he grants you the loan at the very instance. However, if you have a poor history of payments of your loans it can create certain issues for you in future. The lenders usually refer to the previous history of the clearance of loans from the applicant’s end and make decision of provision of the loan accordingly. There are certain lending companies which grade their customers according to their efficiency in returning the loan amount.

Sometimes, the new lender may also call for investigation, if you have applied for a large amount of loan. They need to make sure that you would return their money on time. The simple answer to the question regarding the extent of effects of late submission of loan is that it does affect your credit history but it is not difficult to manage the returning of payments with proper planning.

What is a credit default, and how does it affect you?

It is extremely important to keep all your credit payments cleared. For this to take place, you will have to pay all your debts, loans and bills on time. If you fail to make the payment on time, the authorities give you a 60 day limit to correct the error. However, if at the end of those 60 days you still fail to come up with the required amount, the provider may dub you default. This will have an adverse effect on your credit score, causing it to drop significantly and destroying your reputation and reliability in the eyes of future lenders. Continue reading