Is it Easy to get a Loan? Should it Be?

Dec 09, 2016

Times have changed and the landscape of loans looks vastly different than it did ten years ago. Not only are there a number of new, different and creative providers out there that has to submit under a new National Credit Act and regulations, but, for the most part, the long queues and endless paperwork that was required to get a one has been exchanged for online applications that are processed within minutes.

Even more, the confusing terms and hoards of information that used to be impossible to obtain or understand have now been replaced by companies like Fincheck and the possibility to search for information and loans online. But does this mean that getting a loan is any easier than it was before? And is all this practicality even a good thing?

So is it ultimately easy to a loan?

Even though access to information and the application process has been simplified and made easy, getting a loan (whether it be a personal loan, pay day loan or home loan) ultimately depends on getting your loan application approved and there are still various factors that have an impact on this outcome, such as:

  • the availability of collateral with sufficient value,
  • the amount of spendable income you have, and
  • a negative credit history or score.

You might be able take steps to improve your credit score (get your free score here), but these are factors that you do not necessarily have much control over at the time you wish to apply for a new loan and, as ever, they can make it difficult to get one. The great news is, however, that with the vast majority of different loan providers, you can obtain loans even with a negative credit history or low spendable income. And there are various loans available that do not require collateral. This makes it easier to get a loan and makes loans more accessible to different kinds of borrowers.

Don't confuse simple with easy, you still need to do your homework

We do, however, urge you to take heed and proceed with caution when going for the ‘easy’ loan options. If you have low spendable income, the risk is high that you could take out a loan that you cannot afford. Even though the National Credit Act promotes responsible lending, this is not an absolute safeguard from a loan provider offering you a loan that will keep you bound under extremely high interest rates and unending monthly payments. Especially when considering that unsecured loans have higher interest rates.  And, as we have said before, if a loan provider gives minor heed to your credit score, it might not prevent you from getting a loan but it will prevent you from getting a safe loan or the loan that you need.

With the help of Fincheck, it should not be difficult to get the right loan for you and we strive to make the application process as simple as we can, so that you can say that getting your loan was easy.

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Fincheck is a financial comparisons website that organises information to assist the borrower in making their best financial decision.

Fincheck gathers information from numerous banking partners and presents it to the borrower in a simple, understandable way. Lenders benefit from an additional market place and extensive customer reach. Loan amounts vary from lender to lender. Fees, interest rates, loan amounts and credit scores influence the repayment terms. Lenders require personal details to control their risk and assist the government to combat theft, money laundering, terrorism. Fincheck does not endorse any particular product or company. We are an independent company. The information shown and provided is an opinion, based on numbers and must not be seen as advice or consultation.