20 May One Lending Application for 16 Banks and Finance Companies!
At The Finance Lady you complete one lending application, for us to access 16 different banks and finance companies. Thanks to our relationship with CreditOne, one of Australia’s biggest finance brokers. What that means to you, as a potential borrower, is that you need only complete one lending application. Only one check will be on your credit file (multiple credit checks can unfavourably affect your credit rating).
When you make an application to a finance company, they only have one option to offer you. Should they decline your application, you must try another company. That’s more questions to answer, more paperwork to complete and another enquiry loaded on to your credit file.
Online credit applications – be cautious
Each time you complete an application for credit online, the company will do a credit check on you. Due to the ease of online applications, sometimes people apply to more than one company. Each application has an impact on your POP (Probability Of Payment) score, another term for credit rating. This is what every finance company uses to determine your creditworthiness.
As an example, we had a client who we got approved for his new car, the approval was with a finance company that has a strict policy of not lending to people below a certain POP score. He was above the necessary threshold. That evening, he went home and made 6 (!!!) credit applications online. That was enough to negatively affect his credit rating to the extent that his approval was reversed, and his loan was declined.
Why ‘The Finance Lady’ is different
It is our job to match you with the best lender that suits your needs and gets you the best deal. We can do this effectively because of our long experience in the finance business.
Everyone has different requirements and comes from different situations. An 18-year-old buying his first motorcycle requires a different finance company than the one we’ll choose for a long- standing business owner, that is looking at finance for a $700,000 logging truck.
And we have alternatives! If the 18-year-old motorcyclist or the business owner are declined, we move on to another potential lender. No more applications and no more credit checks for the client.
The chap we mentioned earlier, who made all the applications online and was declined, well we were able to submit his application to another company and he was subsequently approved.
It is this experience that gives us the knowledge to know how to ’sell’ a client to a potential lender. Every day, we see examples of either individuals or businesses (vehicle dealers and other traders) who submit poor applications to finance companies and have them declined. Once a lender has declined someone, it is virtually impossible to reverse the decision. You usually only get one chance to make a good impression.
To make sure you make the right first impression for your lending application – contact The Finance Lady today!