Your loan

Beginner’s Guide to Understanding More About Loans

In some part of a human life, everyone will require to take up a loan to support some project or meet a certain obligation. However, the decision to take up a loan should be very informed. Many people have done the mistake of taking very
expensive loans and have had to work extremely hard to honor their loan obligation.

The best loan is one that has friendly payment policy. In other words, the payment of the loan will give the borrower a chance to pay the loan and continue with other projects. If you want to learn more about loans for people on centrelink, then doing research through their official website is the most appropriate thing. Further, these tips below will help in understanding more about loans

Consider your income

LoanThe first thing to consider before taking a loan is one’s salary. In most cases, centrelink loans will always approve you to take a loan that is three times more than your salary depending on your credit rating. Always remember that your salary will pay the loan you take.

The more loan you take, the less salary you will take home. The more salary you have the more your likeness to pay up the loan. Consider whether you receive regular payment and predictable income. People in businesses are always faced with the problems of delayed payments which will subsequently affect the loan payment

Amount of loan needed

Before committing yourself to take up a loan, consider the amount of loan you need. There is a difference between the amount of money you want and need. The loan should be used for a particular purpose. Consider whether you really need the loan by analyzing other sources of financing the project.

A loan obligation should only be taken if the personal income cannot meet the expected need. In most financing institutions, advice and projection of the amount of loan needed can be given. Be sure to consider your salary before making this decision. What amount of income will you be left with after paying the loan?

If the amount of salary to be left is little, consider taking the project in phases. Ask your bank whether they can give you an overdraft. An overdraft reduces the cost of borrowing. Besides consider whether your employer can give you an advance payment instead of taking up a loan.

Understand the terms and conditions of the loan

IncomeFinally, check on the terms and condition of the loan. Many people ignore the terms and conditions and end up paying fines and reducing their credit rating. Check when the loan should be paid. Check to see whether the payment date is the same as the payment of other personal obligation. Be sure to negotiate with the lender is the payment policy works against you. Check what the policy says about default payments. What are the additional charges if one does not pay the loan on time?


Read about the method of payment of the loan, is it by cash, electronic money or personal bankers checks. If the terms and conditions are fair, take up the loan.…

guarantor loans

How to Take Out a Guarantor Loan

It happens that you have a bad credit score but in need of cash that can only be obtained through a loan. In such a scenario, I would suggest that you go for a guarantor loan. I will not guarantee that you will be given the loan, but it is worth a try. Read on to get tips that will help you get a guarantor loan.

Find the guarantor

guarantor loansThis is the first step. Find someone who will act as a guarantor for you. He or she will act as security for your loan. If you, the primary borrower is not able to make the payments, the bank will go for the guarantor. It is of importance that you choose one with a good credit score rating.

Know the risks

It is important that you tell your guarantor the responsibilities and risks he is getting himself into. A guarantor can be anyone from sibling, friend, parent or any other person you choose. You should not trick anyone to become your guarantor. They should be aware of what awaits them, or what they will be needed to do in case you fail to make the payments needed.

Payments should be made on time

Do not assume that because you have a guarantor, the bank will give you the loan straightaway. No, they will still check your credit rating to see if you are still able to get pay the loan in time. The repayment amount is put within 1/10th of your monthly income. This way the bank will be sure that you can pay.

Apply directly

It is best if you applied for the loan directly from the bank. You would get extra charges if you applied for the loan through a broker. Take yourself to your lender to get rid of any extra charges.

Select the lender carefully

guarantor loansYou should not work with a random lender. I would advise that you talk to a number of them and get their quotes. This is the only way to choose the best lender. A guarantor will give you the opportunity to get the loan even with your bad credit score.

Keep in touch

It is advisable to keep your guarantor updated in case you get problems making the payments. The lender and guarantor will be happy to understand your problems or difficulties early enough. This way, they will help you solve the problems early.…