A personal loan is a great way to secure immediate finances to fund a purchase you otherwise wouldn’t be able to make on your own. Whether you are looking to purchase a car or renovate your home, a loan allows you to achieve those goals that once seemed unlikely. There is more involved in getting a loan than simply reaching out and asking for a sum of money – which is why we have put together an informative guide to personal loans, helping you understand the process.
If you are looking for the right car loan broker to fetch you the perfect deal, learn about our services on the How it Works page and try our obligation free pre-approval.Â
How Do Personal Loans Work?
Once you have decided you need a significant amount of money for a purchase, it is time to apply for a personal loan. At Fido Finance, we scour the market to sniff out the best loan to help you purchase the vehicle you desire. After discussing your personal financial situation, we provide you with the best option for your personal loan from our panel of over 40 bank and non-bank lenders. This is part of our commitment to ensuring the process is as comfortable as possible, as we place trust and loyalty at the forefront of everything, we do to help build meaningful long-term relationships with our clients.
The length of the loan is something that is decided between you and the lender and is often calculated based on how much money is given. Most loans run between 1 to 7 years, with shorter loans typically generating less interest. The interest rate you are given depends on your credit history, credit score, employment status, and requested loan amount. As your guide to personal loans, we take care of everything for you as we work to secure you an interest rate that suits your lifestyle and budget.
Personal Loan Guide to Secured & Unsecured Loans
A secured loan requires you to place some sort of collateral for your loan, such as a car or your home. This is to ensure you make your payments or else risk losing the possession you have used as a guarantee. Secure loans typically generate lower interest rates, depending on your circumstances.
An unsecured loan does not require you to make a guarantee, based on the lender’s assessment of your ability to make repayments. Unsecured loan interest rates are typically higher as a result, however.
Things We Look Out For
While any guide to personal loans can inform you of the ins and outs of the process, being approved for a loan depends on your unique circumstances. Some of the most common reasons for being rejected are:
- Low Income:Â As part of the loan process, you must be able to prove that you are able to pay off the loan with your current income and savings. You must provide pay slips to prove your income, and if it is too low, you may be rejected.
- Credit History:Â If you have failed to repay loans in the past your credit history is bound to look unfavourable. Most lenders will see this as a red flag and reject your application.
- Pending Loans:Â Before approving you for a loan, the team here at Fido Finance checks to see if you already have other loans pending. If we believe this latest loan will place you under too much financial strain, we are likely to reject your claim as we do not wish to burden you with further loans you may not be able to afford.
- Employment Security:Â If you are unemployed or working a low-income job, you are less likely to be approved for a loan. Having stable and permanent employment is the best way to secure a loan.
How Fido Finance Can Help
We have helped countless Australians secure a range of loans to suit their personal needs. Applying for a loan can be a daunting, complicated, and time-consuming process which is why we cut through the tediousness to make securing your personal loan as quick and as easy as possible. Once you engage with our award-winning brokers, we work alongside you to ensure that you secure only the best solutions for your needs. We take the time to get to know you and your situation so we can tailor our options to suit your needs. Like man’s best friend, we stand by your side as we provide expert advice and personalised service to get you on track to securing the best deal for your personal loan.
