natloans – Finance & Leasing

When considering a secured loan you must be confident that you won’t be defaulting in any payments and that your budget can afford the extra expense. Although this type of loan usually has a lower interest rate with a larger amount of money than unsecured loans there is a slight catch. Finance companies will only give you this loan if you are willing to use an asset, such as your car, as security. This is done incase you cannot make the monthly repayments; the lender will not hesitate to repossess your car in order to receive the payment.

Are quite difficult to obtain in this time and day. The lender will not be holding an asset, as security therefore will be following strict criteria as to whether you will be eligible for the loan. Interest rates and repayments are often much higher than secured loans due to the client be bound by only a “promise” that they will be able to make all the payments on time until completion. The only advantage is that there is no asset that can be repossessed!

There are a few factors that must be taken into consideration before even thinking of which loan to go for.

1. Credit Rating – If you have been bankrupt or have defaulted you may not be able to go ahead with your application straight away, you may need to wait a few months then apply for a loan again. If you have a good credit rating and have kept up to date with all your previous/current loans you are on the right path in making another purchase.

2. Employment Status – Are you part-time, casual or fulltime? Depending on the hours and base rate you are at may be the reason you don’t qualify for a loan. You must no be on probation, if you are contact your financier when you are stable in the position and they will guide you from there in to find the best option for you.

3. Income/Outgoing Bills – Can you afford another expense? If you feel that you can pay your bills comfortably and find yourself with cash left over at the end of the month you may have enough to take out another loan. Another option is to save a deposit over a few months and finance less, saving yourself some interest!

For more information on which finance option is best suited for you contact Natloans on 1300 955 791 or visit our website www.natloans.com.au