What to consider when shopping for car finance online?

Posted on Tuesday, October 4, 2016 - 15:52

The variety of online finance brokers is far-reaching, which means that the borrower has many loan solutions to choose from. Nonetheless, many Aussies may feel resistant to trusting an online finance provider. Still, that isn’t the case if you take into account a range of aspects.

Thus, what are the fundamental elements that shouldn’t miss your attention if you’re looking for a finance solution online?

It’s quintessential to ensure that your enquiry doesn’t constitute an official loan application. Checking the company’s credentials is highly recommended as well, while you should acknowledge that online car loan calculators are purely estimates.

Get acquainted with the terms and conditions

Before accepting the terms and conditions listed on the website and before entering your contact details, we recommend you to examine the terms highlighted in the section. By doing so, you establish the way in which your private information can be used. In the case in which you have provided personal information, and you didn’t get acquainted with the terms and conditions, this may be translated into an application sent to a lender, without your approval. That imminently leads to an enquiry left on your credit file, which will leave a black mark on your credit history.

Analyse the company’s credentials

Another essential aspect is to evaluate the company’s credentials. Each loan provider should be a Credit Representative or have an Australian Credit License in order to operate in the industry. A professional, reliable business will, by all means, display this kind of information on their website, which provides the borrower with protection.

Convey online calculators as mere estimates

While online car loan calculators can be handy in providing you with an estimate on how much you can afford to borrow considering your financial status, it’s important to bear in mind that they are purely informative. Ideally, you should ask for the assistance of a consultant representing the online loan provider. He/she will provide you with a detailed, accurate answer fitted for your individual circumstances. Only afterward should you proceed with applying for a loan online.

Some quick facts (if you have bad credit)

  • According to findings, Australian credit card debt has reached the top in 2015.
  • In September 2015, a survey initiated by finder.com.au indicated that 53 percent of Australian adults are in debt. Nonetheless, since credit card debt in Australia is on the growth, this is a good sign for the economy, according to creditcardfinder.com.au.
  • If you have bad credit, it’s highly recommended to check your credit rating before you begin your search for car financing. You ought to submit an application to one of the three official National Credit Reporting Bodies listed on the government site, which includes Veda, Experian, and Dun & Bradstreet.
  • You can obtain immediate access to your report, but in that scenario, you need to pay for it. However, you are given a free copy of the report in 10 working days.

Finding reliable online finance for your car is a possibility as long as you consider the elements indicated above. Make sure you feel comfortable and confident with your choice of loan provider. What other aspects you perceive as important when it comes to online financing?

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