Be careful for Current Economic Lending Conditions
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by: jamespeters
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Word Count: 437
The worldwide conditions in Finance have changed in the past few months
Major reasons contributing to this are: USA downturn in the
housing market which has caused massive losses in some of the world’s major
banks and private equity firms, massive losses on the world share markets,
talks of a possible recession in the USA and the recent rogue trader who
lost almost $8billion from one of France’s largest banks.
These factors are leading lenders to tightening their
lending criteria as to avoid future loans becoming problems down the
track. Its all part of risk management in these uncertain world economic
times. Although
economy is booming, we still rely heavily on the European and US markets, so it
will only be a matter of time that their problems are felt here. Our rates
have risen over the past 12 months due to inflation being above the RBA’s
target band of 2-3%, which has also put pressures on families and individuals
wanting to borrow funds.
When looking at applying for finance in these times, it is
very important to consider the following. Work out a budget in terms of how
much you want to put aside for finance repayments. This can be weekly or
monthly. Also work out how much the running costs will be for the new
purchase. Its very important to consider these cost’s as the lenders always
take into account the running cost’s of any new finance application and it
varies on the size of engine of the car being purchased.
Its also very important to consider your financial
background. No outstanding defaults or currently in bankruptcy will be
accepted. The lenders will always look into your past credit
history, so paying bills on time, and paying back Loans
on time is so important. If your history with one lender has been
excellent, another lender will have no hesitation in providing more finance.
Other important factors are your work and residential
history. Most lenders require you to be full time or at least work full time
hours and show some stability in your residential status.
In summary, your credit history allows you to do many things
in life that you would not normally be able to. By this I mean, Borrow; to buy
that dream car of yours, or go on that long awaited holiday, get married, buy
the toy you have always wanted (Boat, Caravan, Motorbike), the list is endless.
In these turbulent financial times, it’s important to protect your file,
look after your relationships with lenders and budget well so you can repay
your debts .
About the Author
James Peters is a Managing Director of 360 Financial Services.360 Financial Service is dedicated and committed to providing professional and personal service. Our main focus is making your experience as enjoyable and effortless as possible.We can assist you. Cars, trucks, plant, machinery, bikes, caravans, you name it: we will finance it.
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