#interest rates on car loans
Current Interest Rates in Australia
November 08, 2013
The current interest rates in Australia for loans can vary upon a number of factors. Obviously some of the best car loans have the lowest annual interest rate percentage. Through RACV, the interest rate for a car loan is as low as 8.49% and the customer is not subject to ongoing fees. A personal loan interest rate through RACV is at 10.75% annually. The application process is quick and approval can be granted the same business day. With the finance company CUA, car loans are at an interest rate of 8.69% and personal loans are at 12.99%. Westpac car loan interest rates are at 9.99% with personal loans at 14.39%. Personal loans with ANZ are currently at 13.29%.
With these rates in mind, it is important to decide if a secured or unsecured car loan is a better fit. An unsecured loan means that one does not have to provide collateral against the loan amount. There is an option of variable or fixed. With a variable loan, the loan can be paid faster and there is savings on interest costs. There is also the option to redraw on previous payments made on the loan if needed. The loan term can range from one to seven years and the minimum loan amount is five-thousand dollars.ured
With a fixed loan, charges and fees may apply if repayments are made. This type of loan is ideal for those one who are budget conscientious. With a fixed loan, the customer is protected from increasing interest rates. With asecured car loan. there is typically a lower interest rate than most personal loans. The application process only takes a few minutes, and approval can be granted within a few hours. The fixed rates can help with budgeting expenses. A secured loan is much easier to attain, as a lender will have access to collateral if the loan should default. This risk is considered to be less with lenders. Personal loans can carry more of a risk because if one offers their home for collateral and they default on the loan, then the home will most likely be lost. Personal loans can help benefit those who have a strong credit score. There are companies that actually specialize in issuingbad credit loans. So, one can be eligible for approval even with a negative credit history.
With a bad credit report, your financial options can be reduced significantly when seeking approval for a loan. However, there are a few factors to review to ensure incorrect information is not impacting your credit. Recent studies have shown that 1 in 4 credit reports have an error to some degree. Errors as simple as an incorrectly spelled name can reflect negatively against a financial decision. Credit cards can also be a downfall when trying to get loan approval. Most Australians who pay off their credit card debt actually end up accumulating debt again the following year. Missed and late payments can also reflect poorly on a credit report. Store credit cards can carry a very-high interest rate. On the road to repairing credit, it may be wise to cut up these cards completely to avoid the continuous cycle of debt.
In terms of mortgage loans, there are some ways to get approved with a bad credit report. One option is to apply to a lender that does not use credit reports as a means of approval. Another is to show that one’s current financial situation has improved. This can be proven by showing documentation of recent credit card payments and utility bills. Evidence of progress and savings can increase the chances of approval. Seeking out a credit repair agency may also be a good step in the right direction. The agency can provide a personalized approach, and offer feedback on credit ratings. It is also important to remember to be selective when applying for lenders for a home loan. Each time an application is submitted, it is reflective on a credit report. It is advisable to not apply for several lenders, but only a few.