Who benefits from 10 minute loan approvals?

computer shaking hands with humanAsk the bank why it wants to approve your loan within 10 minutes. The likelihood is that your loan will be approved by a computer with very little human input. And you know what happens with computers when they play up!!! The fact is that the bank’s computer cannot tell with any accuracy whether or not you can cope with the loan for which you have applied. To some extent that is because the computer only gets to receive a small bit of information about you. The bank will rely on its ability to sell up your home, farm or business if you do not obey all the loan conditions it has signed you up to.  Aussie Loan Solutions are designed to put you on the winning side of the contract.

The real approval that is needed is for you to approve the lender as someone who will treat you fairly and to approve the loan contract terms as terms that you feel are fair and reasonable and with which you can comply. There are many unknowns in every long-term loan transaction, whether you are seeking a business or farm loan with a term of perhaps 15 years or a home loan with a term of 30 years. Those factors include age, health, weather, your income, family circumstances, the national economy and government regulations. For these reasons it is more important for the borrower to do the approving than for the bank. Whenever I have needed to borrow money I have been focused on the need to get the money and under those circumstances it is easy to forget to do my own “due diligence” to see that the loan is going to benefit me more than it benefits the lender.

The reason that bankers want to approve your loan in under 10 minutes is that they believe that will prevent you from going and checking out what is on offer from other lenders. When banks were first deregulated I invented an app we called a Moneygram which enabled borrowers to check with a number of banks to see what sort of loans were available. Today we call them Loan Apps and they are just as effective now as they were then. There is nothing like having three or four banks offering you the loan that you want, to enable you to see what they are offering, checkout the terms in each of their loans and decide which of them you feel will treat you most reasonably. There is only one time you can do that effectively and it is before you take out the loan and spend the money. Once you have taken and spent the loan you are captive to the lender usually for a very long time. You would be staggered at the loan terms we have discovered in some borrowings that have caused massive distress to the borrowers and threatened their mortgaged properties and their lives.

We have developed specifically Australian loan solutions and these can apply at the beginning when you are applying for an exciting loan to help acquire a substantial asset for the future and can also be applied when such a loan has turned into a life destroying debt that is driving you to despair. It is not necessary to take out bad loans or to suffer from overwhelming debt. But it does take some time effort and money spent on solving the problems. Problems mostly do not just go away and financial problems tend to get worse over time. Therefore the time to call for help with a financial problem is the moment it appears as a problem.

In the 35 years that we have helped people all over Australia deal effectively with their debts and borrow better than the average loan, we have learned a great deal. Perhaps the most important lesson is to understand that you do not need to “trust” the lender that you have approached. Trust is akin to laziness in that it expects the other side to do your homework. The banker’s job is to earn the maximum profit for the bank and if you look at the multi-billion-dollar profits of Australian banks you will see that they are very successful and you will realise that most of that profit has come at the expense of the bank customers. Your goal however is to get the very best loan possible that will enable you to own and operate an asset that will increase in value for the future. Loans are very long term. It therefore pays to check them out very carefully before you give them your seal of approval, because whatever is in that loan contract you are likely to have to live with.

When you want to enjoy good Aussie loan and debt solutions please get in touch and see whether we can make it work better for you.

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