General Tips for obtaining finance

The information on the Chez Johnson Website is intended to be general in nature and is NOT personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice from a AFS Australian Financial Services Licensee.

Depending on individual profile a maximum lend amount may be impacted if a previous loan is going to be included in the new loan.

Example: Maximum lend amount is $45000, trading a vehicle for $10000, and owe $15000 on vehicle, negative equity of $5000 (payout figure) is incorporated in the maximum lend amount with reduces the secured portion of loan to $40000.

Most credit facilities report on Credit Report, if the minimum loan repayment is slow/missed it may mark the credit report loan facility and reduce the credit score. Potential lenders want to see perfect repayments as evidence that current loan facility is being paid on time.

Unfortunately not all clients can keep clear credit due to circumstances beyond their control, and some lenders understand this and offer a second chance to those with impaired credit. Be aware of late payments, default or judgements on credit report, consider contacting the financier/interested party listed on the credit report to discuss and potentially rectify.

Most common reason for a lender declining an application. Keep funds in account at all times, never overdraw or leave the account in negative. The account may incur overdrawn fees, and dishonour current financial commitments, the missed payments may mark the credit report and reduce credit score.

Almost every credit enquiry/application for finance, credit card, or short-term loan through a lender is noted on credit report and each enquiry may reduce a credit score. Where there are multiple credit enquiries within a six to twelve month period you may be required to provide 90-day banking for lender assessment.

Whilst these loans are easily accessible and convenient it is beneficial to avoid if possible, top tier regulated lenders may consider poor financial management when used.

It is beneficial to have savings in account, reduces risk of account being in negative/overdrawn, current loan payments & direct debit payments are honoured, and is evidence to a potential lender of good financial management.

Interest rates are generally based on an individuals overall profile, there are many variables and no two applicants are the same. Lenders have different lending criteria/conditions that need to be met, and the 'purpose' of a loan may also have an impact on potential interest rate.

There are many advertised low interest rates, with an * and a disclaimer, always read the disclaimer for meeting the criteria required.

Example of variables:

Age of Vehicle - typically (but not always) the older the vehicle/asset, the higher the interest rate

Residential - a Home Owner will typically (but not always) obtain a lower interest rate than a Renter/Boarder

Credit Score - a high credit score will typically (but not always) perform better than a low credit score (some lenders assess on overall profile)

Employment - a long term Full Time employee will typically (but not always) perform better than a Casual employee

No Obligation - No Hard Sell - No Upfront charge - No Cost unless loan proceeds to Settlement - Broker Fee included in Loan