Not all banks and finance companies are the same. While one institution might suit one person, that might not be the right one for you. It’s also true that some companies will be easier and better to deal with than others.
In this article, we’ll take a look at how to choose a loan company and some key things to look for before making your decision.
What Do You Need the Money For?
Your decision regarding a finance company could be decided by what you need the money for. As a simple example, if you want to buy a house, then there’s no point considering a finance company that doesn’t offer Home Loans. Different finance lenders specialise in different types of loans.
If you’re not sure what type of loan you should apply for, then you’ll first want to research ‘what are the uses of different types of loans?’. You could be after a Car Loan, Pawn Loan, Caveat Loan, Business Loan, or more likely, a Personal Loan. A Personal Loan is quite popular as it can be used for a variety of individual needs for you or your family, including home renovations, emergency expenses, travel or even to plan a wedding. Once you’re sure what finance you require, this will help you narrow down your search and find the right finance company for your needs.
How Much Money Do You Need To Borrow?
Let’s say you want a Personal Loan to do some upgrades around the home and you’re after $25K. In most instances, banks and many private lenders that offer Personal Loans will be able to lend you this figure if you meet their eligibility criteria.
On the other hand, if you only need $1K to do some car repairs, banks generally don’t offer Personal Loans this low. For smaller loans, you’re better off approaching a private lender, as they have minimum loan amounts that start in the hundreds of dollars instead of the thousands.
Do You Need the Money In a Hurry?
Banks don’t tend to make decisions quickly when it comes to loan applications, no matter what type of finance you need. If time isn’t an issue, then applying for a loan with a bank won’t be a problem. If you need the money quickly – as in the case of an emergency – you’ll need to find an alternative.
When it comes to quick loans, Australia has other lending options and your best choice for fast money is to apply for a loan with a private lender.
These private finance companies specialise in fast cash loans and are the perfect choice when you need money now. Usually, you’ll be able to get the money you need on the same business day if you apply early in the day.
What Is the Finance Company Like To Deal With?
Simply finding a finance company that offers the type of loan you need with attractive terms is not always enough. You want to know that the company is good to deal with, reliable and offers excellent customer service.
How do you find this out?
First, you could ask around your circle of friends and see if anyone can recommend a lender to you. Secondly, go online and do some research about the lenders that interest you most and see what independent feedback you can find. If it’s mostly positive, then that company is likely a good choice.
What If You Need a Loan But Have a Poor Credit Score?
If your credit record isn’t that great or you simply have no previous credit history, you may still be able to get finance.
When it comes to traditional lenders, there might be a slight chance of having a loan application approved, but it’s not likely. There is another option, though.
Some private lenders offer a type of loan that requires no credit checks, so if you’re worried about your credit score affecting your chances, don’t be. If you own a vehicle or some other item of significant value (a Rolex watch, for example), you can apply for a Pawn Loan with a private lender.
They will lend a certain amount based on the market value of the item you leave with them. Let’s say you get a loan against the value of your car. They lend you the money, hold onto your car, then give it back to you once you repay the loan in full.
No matter what your situation or type of finance you require, there are options. It’s always important to do your research to make sure the finance company is a good fit for your needs and they are easy to deal with.