How to Get Your Loan Approved First Time
Check out our top 6 tips that will help you improve your chances of getting your loan approval when you apply with us.
Have you been declined by your bank already?
Find Out Why Your Loan Wasn't Approved
Not all finance companies will tell you why you were declined, in fact many will simply say "you didn't meet our criteria".
Here at Fox Finance Group we will always be honest and transparent with you and explain to you why we were unable to get your loan approved right now. Furthermore, we will explain the steps to take so you can improve your financial situation and be approved in the future.
Bank Statement Conduct
Lenders have a legal obligation to lend money responsibly. This means that if the information provided by you in your application indicates that you can't afford another loan right now then they can't legally lend it to you.
Lenders want to understand that you can manage your money effectively. One of the ways a lender will assess your financial circumstances is to review the way you manage your bank account. Usually a lender will review the last 90 days of your bank transaction history via your bank statements. This can easily be supplied to us via our secure bank statement link.
Some red flags for Lenders include:
- Overdrawing your bank account regularly
- Missing or bouncing your payments on existing debts
- Withdrawing all of your income in cash immediately after it is deposited
- Large quantity of cash transactions in and out
- Excessive transactions at hotels/clubs or pubs
- Excessive gambling evident through online betting agencies
So, knowing this, check out your last 3 months bank statement transactions and start to manage your bank account without these red fags over the next 90 days to help improve your chances of loan approval next time.
Credit File and Score
At Fox Finance Group we love to help people with the financial second chance they need.
Not all Lenders are created equal either, which is why at Fox Finance Group we have multiple Lenders on our panel with a wide appetite for customer lending profiles.
Having defaults showing on your credit file (paid or unpaid) is not necessarily the end of the line.
Our experience tells us that if you know you that you might have some defaults or previous bad credit then don't waste your time applying for a loan with lenders who won't take the time to understand what happened in your life when these issues were listed on your credit file.
We understand that bad things can happen to good people, so our team are trained to ask questions and understand your situation before making a decision based just on your credit file.
It's not always possible to have defaults removed from your credit file but what you can influence is how many times you apply for loans. In fact, this is one critical factor that many lenders look at.
Making multiple enquiries for loans with Banks and other Lenders lowers your credit score everytime you hit the apply now button. Having a Lending Specialist on your side that knows what each Lender will accept is critical to protecting your all important credit score.
This is not a guarantee in any way as the Lender still has the final decision on who is approved, but it goes a long way to only applying with a Lender that suits your situation and protecting your credit score.
Positive Credit Reporting
With the introduction of Positive Credit Reporting and Open Banking Regulations here in Australia, the Lenders now have access to alot more of your information relating to how well you pay your debts.
Our tip here is to keep your commitments to the lender. Did you know that if you miss repayments on your loans a Lender can make note of this on your Credit File for other Lenders to see?
Lenders get comfort from seeing that you do what you agree to do when signing a loan contract. This includes consistently making your agreed loan repayments on time every time.
Positive Credit Reporting records last for up to 2 years, and with Lenders heavily weighting their loan approval decision on what is shown on your Credit File, including this, it is very important that you always meet any debt repayment commitments. (Including Credit Cards and Store Cards)
Number of Debts
The more dets you have the more complicated or difficult it can become to manage your finance and personal cashflow.
If you have a number of smaller debts like afterpay, zip money, payday loans etc. lenders may be of the mindset that you are struggling to live week to week on what income you earn. Paying these out prior to applying again will show the lender that you are back on top of things.
When you apply with us, you want to minimise the number of small loan debts that you are managing at once, making your financial situation easier to manage.
Lastly, some Lenders will view having payday Lenders on your credit file, such as, Cash Converters, Wallet Wizard, Nimble and the like in a negative light. Not having loans outstanding with these types of Lenders will help your chances of getting approved with a main stream Lender.
Talk to Your Dedicated Lending Specialist
We are your Lending Specialists now. If you are unsure of exactly what you need to focus on to improve your financial situation so you can be APPROVED next time you apply for a loan, please reach out to us and we will discuss your situation with you and help you understand the best ways to move forward.
At Fox Finance Group, your Dedicated Lending Specialist is here to help you every step of the way.
We look forward to helping you soon.
Important: Information contained within this article is not classed as financial advice and has purely been developed as a guide to help customers understand what may help them obtain a loan approval. Always speak with your Lending Specialist or other Professional about your individual circumstances prior to making any financial decision.
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