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Debt Consolidation Tips

Top 12 Questions About Debt Consolidation Loans Answered

Top Questions About Debt Consolidation Loans
Are you thinking about consolidating your debts?

Debt consolidation is the process of combining all outstanding debts into one single loan. As with any other financial product, it may or may not work for you.

The key is knowing what to look for to ensure you’ve made the right choice for your situation. Here are some top questions about debt consolidation:

Top 12 Questions about Debt Consolidation

1. What is debt consolidation?

Debt consolidation is a financial strategy that allows you to combine multiple debts—such as credit card bills, personal loans, and other unsecured debts—into one loan with a single payment plan.

This can often result in a lower overall interest rate and easier debt management.

2. How does debt consolidation work?

To consolidate your debts, you would typically apply for a new loan that covers the total amount of your existing debts. Once approved, you use the funds from the new loan to pay off your other debts.

This leaves you with just one loan to repay, often with a lower interest rate and a more manageable monthly payment.

What is the primary purpose of the loan

3. What is the primary purpose of the loan?

Before taking out any form of loan you should ask yourself whether you need it or not.

If you see debt consolidation as a way to control your debts or bills that have become difficult to manage, then it could be a great decision. However, it might be wise to think again if it’s just to increase your borrowing capacity.

Additionally, if you’re considering taking a loan to pay your utility bills, you should first discuss the matter with your provider. They might be able to organise a payment arrangement to help you out.

4. Can I afford to make repayments?

Borrowing more money means either your repayments will increase, or the length of time you will be making repayments will increase.

Either way, you should be certain that you have the means to afford repayments, and a stable income to ensure that you can continue to make repayments into the future. You are responsible for these loans in case of non-payment or defaults.

Arguably, the most important question about debt consolidation is whether you can afford it. So be sure to consider:

  • Have you budgeted carefully and accurately?
  • What impact will a debt consolidation loan have on your financial situation?
  • Will it help you manage your finances better or cause you to lose absolute control of them?
  • Have you taken into account the possibility of changes in your circumstances?

5. Who is eligible for a debt consolidation loan?

Generally, to be eligible for a debt consolidation loan, you must be over 18, have a regular income, a reasonable credit score, and a debt amount within the lender’s acceptable range.

Australian Lending Centre does not check your credit score when assessing your application. Therefore, your financial history doesn’t matter to us, and applying will not damage your credit score further.

6. What are the pros of debt consolidation?

The primary benefits of debt consolidation loans include:

  • Simplification of your monthly payments.
  • Potential savings on interest costs.
  • You may pay off your debt faster if you maintain or increase your monthly payment amount on the new, lower-interest loan.
  • A consolidation loan pays off your existing debts, so your creditors are taken off your hands.

Questions about debt consolidation

7. Are there any risks with debt consolidation?

Yes, there are risks. If you extend the loan term to lower your monthly payments, you might end up paying more in total interest over the life of the loan.

Another important factor to consider about debt consolidation is that if you secure the loan against an asset like your home, you risk losing that asset if you default.

8. Can debt consolidation improve my credit score?

It has the potential to improve your credit score if it leads to more consistent on-time payments and a reduction in your credit utilisation ratio. However, your score might dip initially when you take out the new loan.

9. What types of debts can be consolidated?

Most unsecured debts, such as credit card debts, personal loans, and medical bills, can be consolidated. Some secured debts may also be eligible, but this varies by lender and type of debt.

10. How do I choose the best debt consolidation loan?

Look for loans with the lowest possible interest rate and fees, and consider the loan term that best fits your financial goals.

It’s also important to read the fine print and understand all the terms and conditions before committing. Like with any loan, learn about debt consolidation and whether it’s right for you before applying.

11. Is a debt consolidation loan a good way to get out of debt?

Debt Consolidation can be an effective tool if used responsibly.

It creates a clear, manageable plan to re-organise and reduce your debt. However, it’s not a magic solution because you’ll still need to pay off the consolidated loan.

It’s also crucial to avoid taking on new debt while paying off a consolidation loan. Doing so increases the amount of debt that will need paying off, can complicate your finances, and could damage your credit score.

How can I apply for a debt consolidation loan

12. How can I apply for a debt consolidation loan?

You can apply through various financial institutions, including banks, credit unions, and online lenders. It’s wise to shop around and compare offers to find the best terms for your situation.

While many lenders require extensive documentation and a credit check, the Australian Lending Centre requires minimal documentation and does not check your credit report. We simply require proof of income, a list of your debts, and bank statements.

Remember, while debt consolidation can be a helpful step towards managing and paying off debt, it’s important to consider your own financial situation carefully and consult with a financial advisor if needed. Ensure you know enough about debt consolidation to ensure your consolidation strategy aligns with your financial goals and circumstances.

Categories
Tips

Crypto Trading Tips to Make a Profit

Crypto Trading Tips to Make a Profit
Looking to take advantage of the crypto market?

Are you interested in some intelligent crypto trading tips to make a profit? If so, this piece of content is for you! Perhaps you have heard of all the crypto success stories and the thousands of people making money.

Perhaps you even know someone who has made a steady income by mining cryptocurrency. Whatever your reasoning is for wanting to get involved, it is important to know that you can’t just ‘wing it’. Cryptocurrency is a great way to make money, but if you don’t know what you’re doing, it is also a great way to lose money.

A lot of people who don’t immediately see a profit will give up. However, with the right information, you can make a profit. The good news is that there are many great ways to make money with crypto. Let’s take a closer look!

Why You Need Crypto Trading Tips to Make a Profit

As great as it is, cryptocurrency trading isn’t all rainbows and butterflies. Yes, you can definitely make money with cryptocurrency. However, you need to remember the inherent volatility of it.

Most cryptocurrency involves a rather high degree of risk. This is why you need crypto trading tips to make a profit. Trading cryptocurrency is an excellent way to make money. Though the volatility of the market can put people off at times.

cryptocurrency

So, the potential is there if you are educated. The cryptocurrency market is still small in a way. Though, there is still great potential for growth. Some well-known cryptos are:

• Ethereum
• Bitcoin
• Cardano
• Dogecoin
• AMP
• ElonGate
• Iota
• Shiba Anu
• Moonshot
• Polygon
• Safemoon
• Stellar
• Tether
• VTHO

There are also crypto buying platforms available such as Coinbase, Binance, and Robinhood. Basically, you have plenty of options when making money with crypto.

6 Crypto Trading Tips to Make a Profit

If you are currently wondering how you can make money with crypto, here are 6 strategies/tips that can help you. We will explore these tips and strategies in depth. Let’s take a good look!

1. Investing

Investing is the most obvious and long-term crypto strategy. They are generally well suited to buy-and-hold strategies. While they are extremely volatile, they have great long-term growth potential.

The investing strategy requires you to identify stable assets that will be around for the long term. Assets such as Ethereum or Bitcoin have been known for long-term price increases. In this regard, they become a safe investment.

crypto trading

2. Trading

While investing is essentially a long-term endeavour, trading is meant to exploit short-term opportunities. As said above, the cryptocurrency market is extremely volatile. This means that the price can increase and decrease dramatically and frequently.

To be successful, you need to be equipped with crypto trading tips to make a profit. You will need to analyze the market performance to make more accurate predictions. When trading, you can take long or short positions.

This depends on whether you think the price of an asset will rise or fall.

3. Staking and Lending

Staking is known as a way of validating cryptocurrency transactions. If you are staking, you are able to own coins, but you never spend them. Instead of spending them, you lock the coins in a cryptocurrency wallet. Your coins will be used to validate transactions with a Proof of Stake network.

Essentially, you will be lending coins to the network. It allows the network to verify transactions and maintain security. The reward you receive from this is much like interest a bank would pay you for a credit balance.

You can also lend coins to other investors. Then you generate interest on that loan.

4. Cryptocurrency Social Media

With multiple blockchain-based social platforms, you can be rewarded for creating and curating content. You will often be rewarded with the native coin of the platform. This is a simple crypto trading tips to make a profit.

crypto mining

5. Crypto Mining

As the original pioneers did, you can make money with cryptocurrency mining. It is still a very much crucial component of the Proof of Work mechanism. It is where the value of cryptocurrency is generated.

When you mine a certain cryptocurrency, you will be rewarded with new coins. However, to mine cryptocurrency, you will need technical expertise and upfront investment. Though, you may be able to take out a loan originally to fund this.

6. Airdrops and Forks

To generate awareness, airdrops and free tokens are distributed. For example, an exchange may do an airdrop in order to create a large user base for a specific project. Being part of an airdrop is an excellent way to get a free coin that you can later use to trade, invest, or buy things.

crypto profit

The Bottom Line

When it comes to trading cryptocurrency, knowing the crypto trading tips to make a profit can be extremely helpful. If you are a beginner and looking, to begin with finance, get in touch with the Australian Lending Centre to apply for finance.

Categories
Car Finance

Top Tips for Buying Your First Car

Top Tips for Buying Your First Car
Discover the top tips for buying your first car.

There are many obvious tips out there for buying your first car. However, very few tell you about the tips for buying your first car that you actually need to know. Buying your first car is super exciting, but there is a lot to do beforehand. When you prepare yourself and plan ahead, the process is much easier. It can also help to ensure that you end up with the best car for you.

Bear in mind, it is one of the biggest investments we make in our lives with a lot at stake financially. There’s new cars, secondhand cars, dealerships, private sellers, and auctions houses out there to suit your every need. However, they can make your car buying journey even more confusing.

Why you need to know these tips for buying your first car
This article aims to help first-car buyers understand the process as best as possible. It will also outline the steps you need to take towards owning your first set of wheels. Here are some important tips for buying your first car to keep in mind while shopping.

1. Be honest with yourself

When looking for a new car, you must be honest with yourself. You need to figure out exactly what your car will be used for. Consider things such as:

• The weather where you live (hot, cold, rain, snow)
• Where you need to go (class, work, adventures)
• Your lifestyle
• The driving conditions

Then, it is a good idea to look at the features, options, and price of your desired car.

2. Budget and financing

Secondly, you need to take a very realistic look at your finances. This doesn’t only include the purchase price, but also the use and care of your future car. Consider things such as:

• Maintenance
• Insurance
• Gas
• Repairs
• Parking

Learn more about the maintenance and repair costs here. Then, you should look at your loan. A down payment usually isn’t required for your loan, but making one is often a good idea. Then, you won’t have to borrow as much, and your repayments will be lower. This is one of the best tips for buying your first car.

finance a car

3. Look at your options

Number three of these tips for buying your first car is very important. Shopping for your first car is easier for you than it used to be. The internet offers plenty of information a wealth of sellers near you. This means that you have far more options that are more likely to fall into your price range. You are also able to look at your options and narrow down your choices.

For new cars, you should ask multiple dealers for quotes on prices. For used cars, be sure to ask about the vehicle’s history including any accidents.

4. Know your credit score

Knowing your credit score is very important, not just for car loans, but for life in general. Your credit score will help to determine the interest rate you will pay on a car loan. If your credit score is good, you will be able to achieve a more favourable rate. This will then affect your overall budget.

Through your credit card provider, you will be able to get your credit score for free. Make sure you check your credit report before you want to buy to allow time to improve it if need be.

6. Test drive

Once you’ve settled on a few cars that suit your need and budget, take them for a test drive. This way, you can see how each one feels for you and performs in general. Try to drive them all on the same day so you can compare them with fresh eyes. It is always a good idea to call ahead and make appointments.

This will also help you gauge the way customers are treated at each dealership.

test drive

5. Apply for a loan

While it may seem weird to shop for a car loan before shopping for a car, it’s very useful. It allows you to gain an idea of how much you can borrow. On top of that, you also learn at what interest rate you can borrow. This means that you won’t have to make financial decisions while you’re at the dealership.

Don’t wait until the last minute, check out your car loan options now. This way, you can ensure that you’re getting the best rates possible.

7. Close the deal

The final, but also one of the most important tips for buying your first car is closing the deal. Once your research is done, you know what you want, and your financing is done, it is time to negotiate your deal. Remember that you’re in control. Then, you can focus on reading the contract carefully and closing the deal. Before you sign, make sure you understand the terms of any financing and warranty agreements.

buying your first car

Once you drive off, make sure you always make your car payments. That is the last step to the process. When you need help regarding your first car loan, contact the Australian Lending Centre. With fast, easy, and professional service, you can’t go wrong.

Categories
Credit Card Consolidation

6 Credit Card Tricks to Give You the Upper Hand

6 Credit Card Tricks To Help Boost Rewards & Credit Score
Use a credit card to your advantage with these 6 credit card tricks!

Your credit card can be a double-edged sword: depending on how you use it, it can be your worst enemy or greatest ally. Luckily, plenty of credit card tricks are available to help you out.

If you use your credit card carelessly, you will likely get into trouble and throw off your finances.

However, when used intelligently, a credit card can be a game-changer. It can be a great source of instant credit while also giving you a host of other important benefits to enjoy.

Whether you already have a credit card or are looking to get one, these 6 handy tricks will help you use your credit card to your advantage.

credit card perks

1. Do your research

It sounds simple, but one of the main credit card tricks is to do your research before you opt for the first credit card you see. It is hard to stress just how important doing your research is. There are a few things you need to know about the credit card you’re choosing, such as:

Shopping around for the right credit card is crucial. If you don’t take the time, then you may miss out on awesome offers such as fuel discounts, shopping-related rewards, air miles, and even dining options.

It is also vital that you read the fine print associated with the card. Research is essential to maximise your credit card experience.

Utilise comparison websites to find the best promotions.

There are heaps of comparison websites out there that do all the hard work and find the best credit card for you:

  • Points Hack is excellent for showing the best, up-to-date travel point promotions.
  • Canstar is a popular comparison site for anything from insurance to credit cards.
  • creditcard.com.au has a user-friendly interface that enables you to customise results to suit you.

With the above websites, you can filter results to show credit cards with the best rewards programs, bonus points, no annual fees, low interest rates, and more!

credit card tips

2. Take advantage of reward points & benefits

As mentioned above, many credit cards offer reward point promotions and cash-back offers. Airline travel points are one of the most popular rewards. However, you can even take advantage of discounted utility bills, health insurance, restaurant bills, movie ticket purchases, and more.

You can earn money by spending on your credit card if you take advantage of the best offers.

Forget loyalty

If you have been loyally using a credit card for a number of years, contact the provider and ask for an offer. If they can’t offer one, then forget the loyalty and change provider as soon as possible. These benefits, big or small, can make a huge difference in the long run.

Credit card companies run promotions all year round, and taking advantage of them should be one of your top priorities when choosing a new credit card.

A credit card promotion might include 110,000 bonus Qantas points just for signing up. This is enough to fly from Sydney to London return, saving you thousands of dollars!

Most of the time, for every $1 spent, you will also receive up to 2 rewards points, helping them to stack up over time.

Rewards credit cards also often include travel insurance, airport lounge access and extra perks throughout the year, like discounted domestic flights, bonus points when purchasing through certain retail stores and reduced restaurant bills.

credit card rewards

3. Be smart with repayments

Taking on a credit card is a big responsibility and takes a lot of self-control. It’s easy to get carried away and max out the card without having a clue how you are going to pay back what you owe.

The more you borrow, the longer it will take to pay off your credit card, and the less you repay each month, the more interest you will accrue.

To manage this, we recommend setting aside a portion of your wage each week or month to repay your credit card. The more you can repay, the better, as this will help minimise interest charges.

It’s also crucial to avoid making only minimal repayments. This approach extends the duration of your debt, increases the total interest charges, and can negatively impact your credit rating.

Avoid late payment fees at all costs.

One of the credit card tricks that goes without saying is that paying on time is critical. Usually, late payment fees associated with credit cards are substantial, not to mention incredibly damaging to your credit score.

Remember, the better your credit score is, the better rates, fees, and offers you will receive, so keeping a good credit score is crucial!

Your credit score is closely tied to your repayment history and late payments can heavily impact it. If your credit score is already damaged, credit repair is a very real and beneficial process. We recommend contacting a credit repair company.

4. Keep your credit utilisation ratio low

A credit utilisation ratio (or credit utilisation rate) is the amount of credit you currently use compared to how much is available. Essentially, your credit utilisation ratio is calculated by the following formula:

Credit utilisation ratio = Total credit card debt / Total available credit

So, if you have a credit card limit of $1,000 and you have spent $300, the calculation would be $300/1,000, giving you a credit utilisation ratio of 30%.

Why is it important to keep a low credit utilisation rate? Maintaining a rate less than 30% reassures credit reporting agencies that you do not borrow above your means. In turn, you can expect your credit score to improve.

Additionally, keeping the amount owed as low as possible will help you to remain in control of your credit card debt. This is one of the lesser-known credit card tricks, but a great one to know!

credit card benefits

5. Restrict the number of credit cards you hold

Having too many credit cards increases your tendency to spend and the risk of loss or theft.

If you must have more than one card, it is best to own only two maximum. One for everyday spending and one for emergencies. Credit card debt can severely affect your life and financial future, so use your credit card wisely.

The outstanding debt can pile up drastically if you have multiple credit cards. In the future, this could lead to difficulty when it comes to getting loans or any kind of credit. Therefore, it is best to consolidate these debts.

Credit card debt consolidation combines all current debts into one new debt with a new (usually lower) interest rate and a more manageable repayment schedule.

Using your credit card responsibly can bring many financial benefits. It also helps you plan and optimise your resources far better. A credit card is a great financial asset if used properly alongside these credit card tricks.

6. Use your credit card as a tool

Credit cards are surrounded by a negative stigma of uncontrollable debt, bad credit scores and crazy interest rates.

In reality, as long as you are a responsible lender, a credit card can be a super helpful tool for boosting your credit score and providing you with fabulous perks, such as purchase protection insurance.

Purchase protection insurance.

Purchase protection insurance is one of the most amazing credit card tricks, but hardly anybody knows about it!

It covers items bought with the card against theft, loss, or accidental damage, typically for 90 days after purchase.

There can be claim limits per item and year, and exclusions may apply, such as perishables or second-hand goods.

This feature is often included with premium credit cards, but you can check the card’s terms and conditions for specific details.

Using a credit card to boost your credit score

How can a credit card boost your credit rating? As mentioned earlier in this blog, keeping your credit utilisation ratio can help improve your credit score, but it doesn’t stop there.

Making regular purchases on your credit card and repaying fast and in full can greatly boost your credit rating.

For example, every time you purchase new clothing or tech or refuel your car, pay with your credit card and immediately pay it off.

This will significantly boost your credit score over time because it shows you repay credit card debt quickly, proving you are a responsible lender.

Do these credit card tricks actually help?

The answer is yes. By implementing these credit card tricks, you can use your credit card more effectively and enjoy great rewards.

People often do not receive the guidance they require when getting their first credit card. This can lead to being stuck in a debt cycle, facing bad credit, or simply missing out on benefits by choosing the wrong card.

Credit cards are confusing at the best of times. Trying to understand and keep on top of all the different dates, figures and percentages that come with credit cards can be overwhelming.

By taking note of these credit card tricks, you can enjoy more freedom and peace of mind when it comes to your finances.

Use these credit card tricks for yourself!

The bottom line is that everyone sometimes needs a little help with their finances. Whether you’re experienced or a newbie, it is always nice to have guidance.

Unfortunately, many people have already landed in excess debt or with a bad credit score due to past credit card misuse.

This can make getting finance, including credit card approval, very tricky and interest rates very high.

If this applies to you, or if you would like to consolidate your credit card debt, the Australian Lending Centre could help you receive finance when the banks say no.

Categories
Budgeting

Top 10 Budgeting Tips This Easter

Top 10 Budgeting Tips This Easter
Enjoy this Easter period without worrying about the bank balance.

Are you ready to hop into Easter? It’s just around the corner, which means holidays, events, family gatherings and more are all upon us. For a time of year that’s so full of fun and celebration, it’s so easy to blow your budget and overspend.

While it might seem a good idea at the time, it eventually will catch up with you as you work to pay it off. So, let’s avoid going into debt with these top 10 budgeting tips this Easter.

Top 10 Budgeting Tips This Easter

Easter is almost here, which means now is the perfect time to tighten those purse strings and start saving. Here are our top 10 budgeting tips this Easter:

1. Shop the year before

This one takes a bit of planning, and won’t help you for this year! But, once Easter is over, stock up on decorations and outfits for the following year. They will be heavily reduced so you can grab yourself a bargain.

2. Take advantage of free and low cost community and local activities

Easter is the time of lots of school holiday events, and these can certainly add up. Look around for things you can do for free and opt for that instead. Like heading out to the beach for the day or going on a bushwalk.

Check your local council for Easter holiday activities within your community. The Budget Mom also has these ideas…

3. Look for Easter savings

Whether it’s food or decorations, specials are the key. Plan your Easter menu the week before and browse online before you shop so you can plan your purchases without impulse buying (it’s tempting when it is all so cute). Op shops may also have some great bargains – they will have their Easter decorations out.

easter craft toys kmart
Kids will love these “paint your own” Easter Decorations from Kmart $5

Kmart and Target are also great places to find low cost toys that the kids will love. If you want to take their minds off chocolate for a minute, there are loads of Easter activity toys and plush bunnies for them to treasure.

easter-bunny-toy-kmart
Easter Bunny Plush Toys $5 Kmart

4. Cull the excess without the fun

budget friendly easter gift
Guess How Much I Love You by Sam McBratney Deluxe Book & Toy Gift Set
$12.00

Kids don’t need loads of gifts at Easter – that’s what Christmas is for. Get back to basics with smaller, budget-friendly gifts from the Easter Bunny. Sometimes a book and a toy can replace some of the sugar. Children can build wonderful memories that remain long after you’ve found that last little egg in the sofa cushions.

5. Have everyone bring a dish

If you happen to be hosting this year, make your job easier by asking family and friend to bring a dish. This not only saves you plenty of time in the kitchen but also offers financial relief in the process.

easter cupcakes 159654 2
Easter Cupcakes from Taste.com.au

6. Buy low-cost Easter accessories

BP80540212 grey
Plush Easter Bunny Headband $1.50 from Spotlight

While it can be fun to dress up for Easter, but you don’t need a whole new outfit for the occasion. Find something in your cupboard in Easter colours and spruce it up with a pair of bunny ears for added fun!

7. Get cooking (on a budget)!

Easter treats can be expensive, so why not bake them at home instead? There are plenty of ideas over on Pinterest to get you started.

You can also check out these budget-friendly recipes…

8. Create a Easter budget plan

With the help of the Australian Lending Centre free budget planner, you can stay on top of your finances all year round! Take 5 minutes to fill it out here.

9. Get crafty for Easter

You can also save on the decorations with a few DIY projects at home. It’s the perfect way to keep the kids busy during the holidays while having the house filled with Easter fun.

10. It’s OK to say no

It’s all about setting your budget boundaries. If you’ve gone over your budget for the week, then reign the spending in the following week. Switch a trip to the cinema for a night at home with movies on the couch. You can make popcorn and treats and still have fun without blowing your budget.

While these top 10 budgeting are a great start for the holiday season, it’s important to have a budget you can stick to throughout the year.

easter-budget

Top 10 Budgeting Tips

Of course, these budgeting tips shouldn’t just be for Easter time. You can apply them to any holiday period and set yourself on the path of financial stress. If you’re after more top 10 budgeting tips, then go ahead and get this budget planner calculator.

It will help keep you on track with your finances all year long, so you are in the best position possible. Of course, life does come with unexpected surprises, and there may be times where you find yourself short of debt and needing to take out a loan to tide things over.

This is a great option to have! It can be just what you need to get back on your feet financially and give yourself a fresh start. If you do need a loan, make sure to factor it into your budget straight away so you can get on top of your repayments and make sure you don’t miss any along the way.

Taking Out A Loan

Despite our best budgeting efforts, sometimes we are left with no choice but to take out a loan to get the financial help we need. If you find yourself needing a loan, Australian Lending Centre can help you out.

We offer a variety of services from debt consolidation through to Bad Credit Loans, Debt Management and Refinance. No matter what financial position you are in, you can get access to the money you need – fast. This will help you get back on track with your budget and in control of your finances once again.

Categories
Car Finance Interest Rates

What Is a Good Car Finance Rate?

what is a good car finance rate
Buying a new car is really exciting, but finding the right finance rate depends upon your individual circumstances.

Buying a new car is an extremely momentous and exciting occasion in your life. Whether it is your first car and a second-hand model, or your fifth car and you have opted for new off the shelf. The one thing that factors into both is being able to pay it off. Finding the right finance rate for your car is very subjective, and a lot of it has to do with your individual circumstances. So what is a good car finance rate?

Let’s take a look at this further.

What is car finance?

Having a car is almost a necessity in life for most people. From travelling to and from the office to dropping kids off at school and extracurricular activities, it can be hard to get by without them. In fact, some families even find they need two cars to make things work. The problem is, cars tend to gobble up money – fast.

If you don’t have enough savings to go out and buy a car (new or secondhand), taking out a car loan is a great option. It allows you to pay back the car in manageable instalments so you don’t feel the full hit of the purchase all at once.

Of course, it does come with a catch. Just like any other loan, you repay it with interest to the financial institution you borrowed from. So let us take a look at what is a good car finance rate?

excited buying new car

What is a good car finance rate?

As previously mentioned, this often depends on your individual circumstances. But there are a few key factors that need to be considered when taking out a car loan. All these factors help determine your finance rate and how much you end up paying in the long run:

Interest rate

This is, of course, one of the biggest components to factor in when weighing up a car loan. The interest rate is expressed as a per annum number. Before taking out a loan (any loan) you need to know what that interest rate is. Your credit score can affect how much interest you pay. If you have bad credit and have a history of not paying off loans, a traditional lender is unlikely to take a chance on you. You may have to look for a non-traditional lender who will offset the risk with a higher interest rate.

The loan period

This can be as short as three years or as long as five years. If you opt for a longer-term loan it means your repayments each month will be smaller. However, you end up paying more interest overall.

The repayments

In general, these are made monthly. However, you can always discuss with your lender if you would prefer to pay these off fortnightly or weekly instead. If you pay it off quicker, it can mean you will end up paying less interest in the long term.

Fees and charges

It is always important to look into other fees and charges that might be involved. These can add to the loan amount significantly.

Get the best car finance rate
There is a lot to consider before applying for car finance

How to get the best car finance rate?

Now that you know what is a good car finance rate and the factors that contribute to it, you can look at how to get the best rate for yourself.

You have a couple of options when it comes to taking out a loan:

  1. Take one out with the dealer: the finance rates are often higher with this option, but there is no planning required and it’s very convenient.
  2. Take one out with a bank or non-traditional lender: this option is less convenient, but often gives you the best rate. You are not relying on the dealer for both the price of the vehicle and the loan, so it takes away a bargaining chip.

The best way to get the best rate is to do your homework. Shop around and take a look at who is offering the lowest rates and whether the terms they set work for you.

What if I want to change my loan?

Firstly, it is important to determine whether refinancing your car is the right step for you. What exactly is it and what does it entail?

It essentially involves taking out a new loan to pay off your own loan. The main idea behind refinancing your car is to save you money in the process. If you manage to reduce your monthly repayments then it can free up that cash to be spent on other financial commitments.

There are four reasons you might look at refinancing your car:

  1. Lower monthly payment
  2. Lower interest rate
  3. Longer loan term
  4. Shorter loan term

If you are unhappy with your current situation and are looking into what is a good car finance rate, then this may be the best option for you.

Getting the right help

Whether you are in the stage of looking at different cars on the market and working out your finance options, or perhaps you bought a car recently (or not so recently) and are looking at changing your loan. It is always good to get a professional opinion. The team at Australian Lending Centre will look at your particular situation and offer the best advice based on your needs. Get in contact with us today.

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Debt Management Credit Card Consolidation Financial Planning Interest Rates

How is APR Calculated?

How is APR Calculated?||How is APR Calculated?
Understanding how APR is calculated can be really confusing.||Working out your APR can be confusing.

Wondering exactly what APR is and questioning how is APR calculated? We have all the answers you need to help you discover what the APR is and why it is so important when it comes to interest rates and borrowing money.

What is APR?

APR, or annual percentage rate of charge, refers to the interest rate for a whole year. Rather than looking at a monthly fee or rate charged on a loan or credit card, the number is expressed as an annual rate instead. Many people confuse APR and interest rate, but there is a clear difference between the two. Understanding this can make a huge difference when it comes to your repayments.

If you have a credit card or a mortgage, then it is highly likely you have heard this term before. But have you ever taken the time to work out what it actually means for you? While it doesn’t make much difference when it comes to paying off your credit card, it can make a huge difference to your monthly mortgage repayments. Therefore, it needs to be looked into carefully and calculated properly, especially when it comes to choosing between lenders.

While an interest rate may look good on surface level compared to other lenders, it can be deceiving depending on their APR. We show you why.

Interest Rate Vs APR

Firstly let’s take a look at the difference between an interest rate and an APR. So how exactly does APR differ from the interest rate? Put simply, the interest rate is the cost of borrowing the money. For example, if you borrow $500,000 with a 5% interest rate, this is the principal plus interest. Your interest for the year will be $25,000, or a monthly payment of $2085. Simple, right? So where does APR factor in?

APR on the other hand, includes other costs associated with borrowing money and is calculated as an annual figure. This is what makes the APR a much more effective way of determining the costs associated with a loan. These fees can include broker fees, closing costs, rebates and more. Just like the interest rate, they are often referred to as a percentage.

shutterstock 586787480

How Is APR Calculated?

Let’s take a look at the example above. You have purchased a home for $500,000 and we know that the interest owed to the financial institution on top of this is $25,000 a year. But now we have to look into what other costs were incurred in this process, such as:

  • Did you pay any closing costs?
  • Did you have mortgage insurance?
  • Was there broker fees?
  • Rebates?
  • Any other costs?

These fees are added to the original loan, to give you a new loan amount. For example, if these fees amount to $5,000, then your new loan amount is $505,000. The interest rate stays the same at 5%, but a new annual payment is calculated against the new loan amount. Instead of paying $25,000 annually it is now $25,250.

So, how is the APR calculated from all of this?

You need to take the new annual payment ($25,250) and divide it by the original loan amount ($500,000). This will get you 5.05%.

In this scenario the APR is 5.05%, while the interest rate is 5%. As you can see, APR is the figure you need to pay attention to as it actually refers to the amount you will be paying back.

What Does This Mean for Loans?

When it comes to borrowing money for a big loan, such as a mortgage, many borrowers get hung up on simply comparing interest rates. The problem with this is that it does account for any of the upfront costs that are involved with the loan. This can account for a high APR. While the interest rate may have initially looked good, when you factor in the APR, it may not be the best offer out there for you.

The part most borrowers find confusing is when they come across two different lenders, offering the same interest rate with the same monthly repayments, but with different APRs. What this means is that the lender with the lower APR requires fewer upfront fees throughout the process. All in all, this will offer the better deal for you.

Having a clear idea of what an APR is and being able to answer the question how is APR calculated will make huge difference when it comes to taking out a loan. You can use this information to make more informed choices that leave you financially better off as a result.

Australian Lending Centre

Get in touch with the experts at Australian Lending Centre for professional advice about APR’s and how they are calculated. We can help you make informed decisions related to your circumstances without getting lost in the numbers. We are always here to help.

Categories
News Business Loans Financial Planning Short Term Business Loans Short Term Loans

Emergency Business Loans – Risk vs Reward

Emergency Business Loans||Emergency business loan support||Can an emergency business loan help?||business loan calculator
Emergency Business Loans||Emergency business loan support||Can an emergency business loan help?||business loan calculator

As we find ourselves in the middle of a global health crisis brought on by COVID-19, there comes a point where protecting physical health comes at the expense of our financial health. Employees at risk of carrying the virus are being forced to stay home. Spending habits have completely changed. The stock market has crashed. The list goes on… But what does this mean for your business? Cashflow is likely to be stretched within any company at this time, particularly within business start-ups. If you don’t have much money in the reserves then how can you keep your business afloat if the worst does happen? Emergency Business Loans can provide a fast source of income for when things don’t go to plan. This sounds great, but what are the risks?

What Are Emergency Business Loans?

Emergency business loans can provide a fast source of income to give your business the cash injection it needs during tough times. They are usually granted quickly and you don’t always need a great credit score in order to be approved. But they do often come at a cost, including higher interest rates than a standard loan. Emergency loans come in many forms. These include unsecured personal loans, credit card cash advance loans, payday loans and even pawnshop loans.

Emergency personal loans

The great thing about emergency business loans is that they can be processed extremely fast. You can expect to receive an emergency business loan within days of approval. Depending upon your credit score, you might qualify for an unsecured personal loan. This means that the loan will not be secured against any assets, such as property or a motor vehicle. Personal loans usually have fixed interest rates and can be paid back over a set period of time. Before taking out an emergency personal loan, you should first ensure that you will have the funds available to pay it back, otherwise, you will wind up in a worst financial position than you started in, along with your credit history taking a battering.

Emergency cash advance loans

It is possible to use the remaining balance on a credit card to take out as a short-term loan. This will mean a higher interest rate than normal and this rate will also be relative to how much you take out. So be wary of how much you do borrow via a cash advance loan.

Emergency payday loans

Unless you’re expecting an influx in cash in the very near future but are in a desperate and immediate need for cash to tie you over, for the time being, a payday loan is a risky option. APR’s can be as high as 400% and need repaying in full, rather than in instalments. This should be a last resort option. It’s easy to become trapped in an endless cycle of re-borrowing in order to pay the last payday loan off.

Emergency pawn loan

Another last-ditch option here. You can have personal items valued by a pawnbroker, of which they will use as security in order to back the loan. And if you find yourself unable to repay the loan, your pawned item will be listed for sale.

Are There Alternatives to Emergency Business Loans?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two. Banks have tightened their lending criteria in recent times and often require financial history or in-depth account records to assess the capacity of the business to handle their financial obligations. This means that applying for emergency business loans through a bank can be a tedious, time-consuming process. For this reason, if you need funds fast, then banks aren’t a great option.

Emergency business loans may come at a higher cost for borrowers with no proof of income and a poor credit rating. When this happens, it is advisable to search for other options. Here are two alternatives which could help you establish or maintain your business especially when there is an urgent need for funds:

Line of Credit

Do you have a business account with a bank, but don’t qualify for its traditional business loan? You can apply for a line of credit instead. A line of credit enables you to access extra money whenever you need it. This is because they don’t have a fixed term, unlike personal loans. So, you can use it without applying for another loan. You also only pay interest on the amount you have borrowed, not your entire credit limit. However, usually, interest rates are usually variable with lines of credit, meaning that they can fluctuate up or down. You also can’t expect a quick turnaround with a line of credit because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional emergency business loans. ALC understands that business must continue as usual despite any financial drawbacks.

Considerations Before Taking Out an Emergency Business Loan

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

Determine the business’s needs and the amount you need to meet it

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When running a business, it’s important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

Specialised lenders may offer bad credit business loans, meaning they can still approve your loan application despite negative credit history. But reviewing your credit file is good to practise. You may find that there are defaults or judgements which have been incorrectly listed. So, before you send your business loan application, make sure that your credit file is accurate and up to date. Companies such as Clean Credit are able to quickly and easily assess your credit file and repair it if required.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved between 24 hours and 7 days – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

Categories
Financial Planning Debt Management

Budgeting Tips – Learn How to Manage Your Finances

Budgeting Tips to manage finances||Budgeting Tips||Budgeting Tips
Budgeting Tips to manage finances||Budgeting Tips Budgeting Tips

There are many benefits that come with budgeting. Creating a budget is something that everyone can do. It doesn’t matter how much you earn, what expenses you have, or which stage you are at in life. They can be created specifically for your needs. In this blog, we share budgeting tips to help you to manage your finances, but first, here are some reasons you might be considering a budget:

Set and meet a savings goal

Have a big trip on the horizon? Looking into high schools for your kids? There are plenty of expenses in life that add up fast, and creating a budget is a great way to work towards them. You may even have a bigger goal in mind, such as buying your first home. Every little bit counts and budgeting will help get you closer.

Overview of your finances

You may think you are spending wisely, but often on closer inspection of where your money is going, you may discover otherwise. Often we spend blindly, thinking we are keeping track, but when we add up the numbers, it can be a shock. Creating a budget lets you see exactly where your money is going and what you are spending it on.

Improve your spending

Finally, with a budget, you can improve your spending. You don’t have to cut out the luxuries, but rather just look at cutting down in places to help you add more money to savings instead.

No matter which reason applies to you, creating a budget is a practical solution. It puts you in charge of your finances. Here are some great budgeting tips to help.

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Budgeting Tips – Manage Your Finances

Start with the Past

This may sound draining, but it really is the best way to do it. It’s best to go back about a year, so you get a full overview of all your expenses. This might include insurance and other bills that come at different stages throughout the year.

Print out your statements and run through them with different coloured highlighters. For example, use yellow for household expenses, green for car expenses and orange for entertainment. Just being able to see this at a glance will give you a good indication of where your money is going each year. And remember, a budget isn’t about cutting out bad spending. It is about being aware of where you money is going and cutting down on areas. Maybe you didn’t realise you went out so much?

Set Achievable Goals

Look at where you are and where you want to be. There is no point cutting out all entertainment expenses, just to buckle down and save. This just isn’t realistic and you will end up slipping up, which will put you back at square one. Instead, set goals you can achieve, and always allow for ‘anonymous’ expenses, such as a couple of dollars for the cake stand at school. You need a bit of leeway for these small expenses that can add up.

Open a Savings Account

Now you have a goal in mind, make sure you have a savings account set up. The most important thing when it comes to your savings account is to ensure you are earning interest on the money. Opt for an account that has a good interest return, after all this is easy money in your pocket that will give your savings a good boost.

Use cash

By using cash instead of your credit card or bank card, you will become much more aware of your spending and less likely to overspend. This is one of the best budgeting tips out there. Take out a certain amount each week and watch where it is going – don’t let yourself spend beyond this. It is so easy to tap away on a card and not even consider where your money is disappearing too.

Ring all your providers

Another one of those golden budgeting tips. This one can be time-consuming, but it is so worth it. Ring around all your providers, mobile phone, internet, insurances, etc., and look for a better deal. Often all you have to do is ask, especially if you have been with them for a while.

Stick to It

Don’t let yourself go, as bad habits will come back really quickly if you find yourself giving up. If you have the odd slip-up, that’s fine, get back on track and go again. And if you are finding it is just too hard, this may mean you need to take a look at your goals and readjust them to make them more achievable. It’s all too easy to feel like a failure if you can’t meet your goals. However, if this is the case, it is more likely that your initial goals just weren’t achievable. Budgeting apps can be useful if you are struggling to budget yourself. Money Brilliant is one of the budgeting apps available in Australia.shutterstock 1120539272 Budgeting takes hard work and perseverance, but the results speak for themselves. Use these budgeting tips to help you to manage your finances and soon you’ll be in a good position to reach your savings goals. If you need a bit of extra help managing your money, get in contact.

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Fast Loans

Discover The Fastest Ways to Repay Loans

Fastest way to repay loans
Check out these tips on the fastest way to repay loans.

Paying your loans off in small amounts can be easier on the wallet in the short term, but in the long run, you’ll end up spending more and being burdened with debt for longer.

Learn the fastest ways to repay loans below and reap the benefits!

Here are some tips for paying back your loan faster

1. Pay more

If you can afford it, make larger monthly payments to pay off the principal more quickly.

For example, a $2500 fast loan with 6.8 % interest and a 10-year payback period would cost $28.8 a month. Making $70 monthly payments instead of $28.8 enables you to repay the fast loan in just over 36 months.

By paying the principal more quickly, you will also pay less on interest.

2. Make additional payments

The less you owe, the less interest that you will be charged. By budgeting effectively or receiving a bonus from work, you may be able to make additional payments to your fast loan.

3. Create a clear plan

Creating a clear plan is one of the simplest and fastest ways to repay loans.

  1. Start by understanding exactly when your loans will end or if it’s a credit card, then check the current balance.
  2. Next, create a goal to pay it off within a specific period of time. You’ll need to understand exactly how much money to put aside each week to achieve this.
  3. Commit to your plan and you’ll have a clear pathway to becoming debt free ahead.

Make it a routine to pay it off monthly. If you’re facing difficulty in coming up with the monthly payments, create a budget and cut back on your expenses. This way, you can lift your debt obligations off your shoulder faster than ever.

4. Automate savings

Automatically transferring money into alternative accounts is a great way to save extra cash. Rather than spending money on trivial things such as movie tickets or unhealthy meals, automatic payments can help you set aside that extra cash to pay off your debt. 

Make sure you will only use that account to repay your fast loans and other types of debt. This will require sacrifice in certain areas, but it will ensure you are one step closer to financial freedom.

Hide your credit card in a safe place

Don’t be a victim of credit card theft. With easy access to your credit cards via pay pass; strangers who have access to a lost credit card can easily tap on purchases less than $100. Keep your credit card securely in your wallet. If you lend your card to friends or family, make sure you keep track of any transactions online.

Keep your phone in your pocket. 

The same rule applies to your mobile phone. With the rise of Apple Pay, you can purchase your transactions through your mobile phone. Make sure that you keep your phone locked with a passcode so that strangers cannot make any payments without facial recognition or a passcode.

5. Close some credit cards

Having them in your wallet may tempt you to spend more. Leave only the low-interest credit cards for your urgent needs.

6. Consolidate your debts

One of the best ways of ensuring that you continue to pay off your loan quickly is to consolidate your debts into one neat and tidy bundle. This will also protect you against the rising interest rates across different loans. This will benefit you in the long run; whilst making it easier to manage your debts.

7. Be proactive by increasing your income

Earning cash while dealing with your debts is a good way to stay proactive about overcoming debts. You don’t only generate wealth to pay for your loans; you also build your nest egg. If you can put away $100 every month out of your income, that would be $1,200 in annual savings.

At the Australian Lending Centre, we can clear debt management plans to help you move towards a financially secure life. It takes discipline and planning, but you can surely do it.

Warning About Borrowing

Contact Australian Lending Centre to get back on track. 

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Bad Credit Loans

Why You Shouldn’t Co-Sign A Bad Credit Loan

no credit check loans

Co-signing your friend’s or a family member’s loan might appear like the right thing to do. If you can help someone during this New Year, why shouldn’t you? Nonetheless, before you consider signing your friend’s bad credit loans, you should be aware of the implications. There are many risks that come with the decision to co-sign a loan, as follows.

You Are Held Responsible for The Bad Credit Loans

Even if you are co-signing a loan for a house you won’t be living in, or for a car that you won’t be driving, when you co-sign a loan, it simply means that you are held liable for making repayments. While it is true that having an additional line of credit might benefit your credit score, the advantage isn’t there – unless your friend makes timely repayments for the bad credit loans.

Plus, considering that you qualified as a co-signer, the odds are you don’t need additional credit lines. At the same time, you should know that when you agree to co-sign a loan, if the loan isn’t repaid, you can be held liable. That being said, make sure you factor this in beforehand.

The Payments on the Co-Sign Loan Account Will Affect You

When you decide to co-sign a loan, it goes without saying that you don’t get to benefit from the loan. However, whether the payment is made or not will affect you. That is to say, if your friend makes late payments, it would be as if you were the one that made late payments, as well.

In other words, that late payment will appear on your credit report as a negative listing. Evidently, the more late payments, the lower your credit score will be. It goes without saying that this might limit your options next time you’re looking for financing.

In the worst-case scenario, it might take a while until the creditor informs you of the delinquent payments – at that point, it might be too late for you to do something to save your credit score.

You’ll Increase Your Outstanding Debt

Moving on, if you’re thinking of helping a friend by co-signing his/her bad credit loans, you should note that this decision will increase your debt to income ratio. Thus, it would be safe to safe that this will inevitably affect your creditworthiness and the way in which lenders convey you.

When a creditor will assess your application, the fact that you’ve co-signed a loan won’t necessarily help you out – especially if your friend isn’t the most responsible borrower.

A Third-Party Collector Might Come After You

No one anticipates not being able of making timely repayments. Nevertheless, this may happen – especially for people looking for bad credit loans whose income isn’t stable. Considering that your loved one fails to make repayments and defaults on the loan – do you know what will happen next?

In this scenario, if the payments are delinquent, a third-party collector is entitled to come after you. To make matters worse, you might end up being sued for bad credit loans you never even got the chance to use. Having a judgement entered against you is, without fear of contradiction, one of the worst entries you can have on your credit report.

On the other side, considering that your friend decides to discharge the debt in bankruptcy, a judge cannot come after them. Still, you might be forced to repay the debt, or, alternatively, you might need to file bankruptcy, as well.

Getting Out of Co-Signing Bad Credit Loans Isn’t Easy

If, say, you’ve ended up co-signing a loan and you’ve had a change of heart, getting out of it is far from being easy. That is to say, even though you might regret your decision, once you entered a binding contract, getting out of it is really complicated. The only way in which that could happen is if the other person gets your name off the account.

Still, in order for that to happen, their financial situation must be better, so that they can qualify to get financing without a co-signer. Alternatively, they might consider collaborating with a reputable provider of bad credit loans, such as Australian Lending Centre.

Your Relationship Will Suffer

Moving on, if the co-signed arrangement doesn’t go as planned, not only that your financial situation will worsen, but this might also harm your relationship. How will you react in the event in which your friend doesn’t manage to repay the loan and you’ll be held responsible to make repayments? What if you end up in court due to this scenario? Ideally, you shouldn’t mix relationships with finances, as the consequences could be fatal, especially if the loan terms are far from being favourable.

To sum up, these are some of the main considerations you should think of before agreeing to co-sign your friend’s bad credit loans. Being fully aware of the risks involved is mandatory so that you know what you’re getting yourself into.

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News

Staying on Holiday Budget with Prepaid Credit Cards

how to make a holiday budget

Wondering how you’re going to stay on holiday budget? Prepaid credit cards could be a wise alternative to starting the year without a massive blow to your bank account or credit line.

You are using your own money.

AusPost has a Load & Go prepaid Visa card that is accepted anywhere Visa is accepted, you can reload online or in-store, no reload fees, no monthly fees, no credit checks, no interest charges and no application form. They make it so easy a toddler chewing on an iPhone could load money and start shopping online before you finish reading this post!

Prepaid credit cards can be loaded with the funds you want to allow yourself to spend. You can safely know that once the funds are depleted, you are cut off. There is no going over the limit or a going over-limit fee. There is no interest charge because the money is all yours.

Once it’s gone, it’s gone.

You can safely spend money knowing that you are not dipping into the rent, mortgage payment, or household funds. Think of the relief you’ll have when you open that pesky credit card bill and see that you didn’t blow your entire credit line partying like a pop diva in Bali!

You saved for this holiday and you want to have fun. Load up a prepaid credit card with the funds you want to use and travel safely without the wad of cash in your back pocket and without draining your bank account or credit line dry!