Coles Personal Loans – Whats with that?
Really? We’re going to go to the supermarket and get a personal loan as well? Good marketing. But what is really behind a Coles Personal Loan? Or any other self-branded personal loan?
Coles Personal Loans – Who Gives You The Money?
Like a lot of outlets, the people advertising the product do not necessarily provide you the money. Most outlets operate on what is known as a ‘White Label’ product. That is, the loan funds are actually provided by a mainstream lender. That lender will do the assessment to see if you are a good risk for them to lend to. They will also be the one who will chase you if you don’t make your repayments. In the case of a Coles Personal Loan, they are funded by Citigroup, so they are the ones actually calling the shots.
How Do They Work Out The Interest Rate?
There are many factors that go into working out the interest rate you are given. The first thing they will look at is, ‘are you a home owner’? Home owners are generally more stable and less likely to move or quit a job. What is your previous loan history? All lenders will do a credit check to see what enquiries you have done in the past. The more recent enquiries you have had, the lower your credit score will be. The credit check will also show if there has been any bad issues in your past credit history. If there are, this will dramatically lower your credit score. Another thing they look, (and a very important one) is your ability to repay the loan. Having loan capacity is the number one thing in determining if you can afford to take on a new loan. Having good capacity and good spare money each month will also assist in getting you a better interest rate. Other things like job stability, residential stability, do you have more assets than debts. These are all things that come into the lender determining the interest rate you are able to get.
Can You ‘Barter’ to A Better Interest Rate?
Sometimes yes, but generally not. Most of the above ways of working out your interest rate is inbuilt into the lenders system. It’s not a manual process. A good way to get a better rate is to use a broker. Most brokers will have a multitude of lenders not just in the Home Loan space, but also in the Car Loan and Personal Loan space. We can determine which lender is looking for what type of client. Some lenders will also allow brokers to “pre-assess” you and your credit file, without putting an actual enquiry on your credit file history. This can be done without lodging the application to determine the best option or you.
The Home Loan Comparison Co. compares home loans from a much wider variety of banks than most people have time to consider, and we find the loan that suits your goals.
We are experienced, knowledgeable and dedicated to building ongoing relationships to keep on providing personal and valuable service that is rarely experienced when dealing with the banks.