It’s not uncommon for boat buyers to have concerns about whether they will be approved for boat finance.
Every lender has their own lending criteria, the good news is that Credit One has a number of options to suit those looking to borrow money for a fantastic lifestyle choice. We get you set with the best loan to suit your current financial position with market leading interest rates.
Of course, we can’t guarantee your loan will be approved until we can do a full application review as everyone has differing financial circumstances.
But by following the four tips below, you can give yourself the best chance of approval! Once approved, some of the tips below are just as important to ensure the success of hitting the high seas in your new watercraft.
1. Avoid Changing Jobs
When you’re looking to take out a boat loan, it’s not the best time to change jobs. Lenders prefer stable applicants who have been in their job for a period of time. If you’ve only just switched jobs, the lender will see you as being higher risk and potentially will be less likely to approve your application.
But when you’re able to show a history of stable employment in your application, the lender will be more comfortable lending the funds to you.
Once approved, changing your job could impact on your application.
2. Pay Your Bills On Time And Avoid Missing Any Repayments On Loans
As part of your loan application, you may be asked to provide up to 90 days of bank statements. If the lender sees any dishonours, missed payments, late payment fees etc, this will drastically reduce your chances on a loan approval. Things like gambling will also reduce your chance of approval.
Try to keep your bank statements tidy leading up to your application. Maintain a healthy balance in the bank, try put some extra money away, this will prove to the lender you can budget for the loan.
3. Use A Finance Broker
When you apply for your loan directly with a bank or another finance lender, you are limited to the loan products that one single lender has available. You really don’t know if you’re getting the best deal on the market or if you even meet their lending criteria.
But when you apply through a broker like Credit One, we’re able to compare a panel of 40+ lenders to find you the best deal on the market, plus ensuring you meet the criteria, giving you confidence your loan will be approved.
A good broker will save you a lot of time by finding the best deal for you and assisting with your application. The broker is working for you, not for the bank.
Keep in mind that not all brokers are the same. That’s why it’s important to choose a broker with a good reputation and check their customer reviews.
4. Know Your Limits
It’s important to consider how much you can realistically afford to borrow. Think about your current expenses and how much you can afford in weekly or monthly loan repayments.
When you know roughly what you can afford in repayments, you can use our finance calculator to get an idea of how much you can borrow.
A Credit One finance broker will also be able to guide you on this so you can apply for an amount you’re able to afford. This means your application will be more likely to meet the lending criteria.
Also be sure to keep in mind all of the costs associated with buying a boat. You will have your upfront costs of the purchase but also associated costs like boat registration and insurance
Do you have any concerns about whether you could get your loan approved? Speak to a Credit One finance broker for a free no-obligation consultation. Begin an enquiry online to get started.
