Comprehensive Tips for Borrowing Money: Expert Advice & Strategies

18 Hot Tips For Intending Borrowers

What are the best tips for borrowers looking to make their loan process easier?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.

#1. Avoid unsecured loans if possible

Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.

#2. Be honest in loan applications

Need Money for a Bike?

We offer fast, free, easy access to the best Bike Loan rates and options in the Australian market. Simply use our 3-minute Bike Loan enquiry form to see if you qualify … and you'll get instant access to our national specialist Bike Loan broker network for free advice and assistance through the approval process. No charge, no obligation!

... compare bike loans ...

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

#3. Can't get a standard loan? There are alternatives

If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

#4. Check your statements for errors

There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

#5. Consider smaller lenders too

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

#6. Do you have to take out a personal loan at all?

Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!

#7. Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

#8. Don't just take the dealer finance

Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

#9. Don't make multiple applications

Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

#10. Don't rely solely on comparison rates

All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

#11. Have the right information when applying

What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.

Personal lease applications will require:

proof of current employment
income details or tax returns

Business lease financing requires more detailed information and may include your:

balance sheet
tax returns
cash flow projections
business plan

Confirm with the lender what you will need before the interview.

#12. Have you considered a credit card?

Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

#13. Honesty counts

#14. Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.

This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

#15. Know what interest rate applies

When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

#16. Look beyond the banks

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

#17. Try lenders with whom you are a regular customer

Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

#18. Understand what's on offer

Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Boat Loans Articles

Don’t Sink Your Finances: Budgeting Tactics for Boat Upkeep

Owning a boat can be a dream come true, offering endless adventures on the water. However, it's essential to understand that boats come with their own set of financial responsibilities. Without proper budgeting, the joy of boat ownership can quickly turn into a financial burden. - read more

Mistakes to Avoid When Applying for Boat Financing in Australia

When it comes to purchasing a boat, financing plays a vital role for many individuals in Australia. However, applying for boat financing can be a complex process, and making mistakes along the way can lead to significant financial consequences and missed opportunities. - read more

Exploring Australia’s Stunning Coastline: The Joys of Boats and Jet Skis During Holidays

Australia is home to some of the most breathtaking coastlines in the world. Stretching over 25,000 kilometers, Australia's diverse coastal landscape offers something for everyone, from serene beaches to rugged cliffs and vibrant coral reefs. This vast and beautiful coastline is a treasure waiting to be explored, making it a perfect destination for holidaymakers looking to experience the magic of the sea. - read more

Common Mistakes to Avoid When Applying for a Boat Loan

Applying for a boat loan can be an exciting step toward owning your dream vessel, but preparation is key to securing quick approval. A well-prepared application can make all the difference, ensuring you avoid any unnecessary delays and get the best possible loan terms. - read more

How to Improve Creditworthiness and Increase Chances of Boat Financing Approval

Are you dreaming of purchasing your dream boat but worried about getting approved for financing? Ensuring you have a good creditworthiness is essential when it comes to obtaining boat financing. In this blog post, we will explore the importance of creditworthiness in boat financing and provide valuable tips on how you can improve your creditworthiness to increase your chances of getting approved for boat financing. - read more

How to Avoid Capsizing Your Budget When Comparing Boat Loans

The excitement of buying a boat and the role of right financing: The dream of sailing on the open seas or cruising through tranquil waterways can be incredibly enticing. The prospect of owning a boat opens up a world of adventure, relaxation, and luxury. However, much like navigating through uncharted waters, purchasing a vessel requires sound financial planning. Choosing the right boat loan is crucial in making this dream a reality without causing a financial shipwreck. - read more

Finance News

Mackay Boat Wreck Removal Sends a Timely Message to Owners

23 Jun 2026: Paige Estritori

Queensland’s latest waterway clean-up in the Mackay region is a useful reminder that boat ownership does not end at the purchase price. Announced on 22 June 2026, the Queensland Government has now removed more than 150 derelict vessels from local waterways under the Keeping Our Waterways Safe initiative, with recent work focused on the Pioneer River. - read more

Vessev's Electric Hydrofoiling Boats Poised to Revolutionise Swan River Transport

16 Jun 2026: Paige Estritori

Perth's Swan River is on the brink of a transportation transformation with the introduction of Vessev's electric hydrofoiling vessels. These innovative boats promise to deliver high-speed travel without the disruptive wakes that have long restricted river usage. - read more

ACCC Halts BRP's Sale of Telwater to Yamaha

16 Jun 2026: Paige Estritori

The Australian Competition and Consumer Commission (ACCC) has intervened to block the proposed sale of Telwater Pty Ltd., a leading Australian aluminium boat manufacturer, from BRP Inc. to Yamaha Motor Australia. This decision ensures that Telwater remains under BRP's ownership for the foreseeable future. - read more

Austal to Construct New Passenger Catamaran for Whitsundays Routes

16 Jun 2026: Paige Estritori

Austal Limited has announced that its Australasia division has secured a contract valued between AUD 14 million and AUD 16 million to build a 36-metre passenger catamaran for Cruise Whitsundays, part of the experiential tourism group Journey Beyond. This vessel is set to enhance transport services in Queensland's renowned Whitsundays region. - read more

Pioneering Australia's First Fully Electric Passenger Ferry

09 Jun 2026: Paige Estritori

In a groundbreaking development for Australia's marine industry, Aus Ships and Volvo Penta have announced their collaboration to construct the nation's first fully electric passenger ferry. This initiative signifies a major advancement in sustainable marine transportation, aligning with global efforts to reduce carbon emissions and promote eco-friendly alternatives. - read more

Pioneering Australia's First Fully Electric Passenger Ferry

09 Jun 2026: Paige Estritori

Click for more Finance News

Start Here

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase

Asset-Backed Security (ABS):
A financial security backed by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables.

18 Hot Tips For Intending Borrowers

What are the best tips for borrowers looking to make their loan process easier?

#1. Avoid unsecured loans if possible

#2. Be honest in loan applications

#3. Can't get a standard loan? There are alternatives

#4. Check your statements for errors

#5. Consider smaller lenders too

#6. Do you have to take out a personal loan at all?

#7. Do you qualify for a 'relationship discount'?

#8. Don't just take the dealer finance

#9. Don't make multiple applications

#10. Don't rely solely on comparison rates

#11. Have the right information when applying

#12. Have you considered a credit card?

#13. Honesty counts

#14. Keep accurate records

#15. Know what interest rate applies

#16. Look beyond the banks

#17. Try lenders with whom you are a regular customer

#18. Understand what's on offer

START HERE.