How can a good customer not be approved?
At Fair Go Finance we take great Aussie pride in being a responsible lender.
This means we make sure that when we offer a loan to a customer, we're confident they can comfortably make the repayments from start to finish.
But shouldn't a good customer always deserve to get a loan?
When you've worked hard and are proud of the fact you've always done the right thing, doesn't that mean you're entitled to get a loan whenever you want?
You may be someone who:
- Has always repaid all of your debts within arrangements
- Has proven how reliable you are when managing loans
- Has a good credit score
- Earns a good income
- Has assets such as your own home or car
If you have any or all of these qualities, they are very admirable attributes and will always be reflected in your credit rating and in your credit report.
But there is one fundamental law that applies to EVERYONE, outside of credit ratings and even millionaires can't escape it. What is it?
There is a point where every single one of us can't afford to borrow anymore.
It's not a crime. It doesn't make you a bad customer. It's purely a moment in time, which can be changed as soon as some debts are reduced.
At Fair Go Finance, for every single loan application, we do a serviceability calculation (just as we expect all responsible lenders to do!)
This calculation takes your income and then subtracts your;
- living expenses (food, petrol, memberships, utility bills etc)
- any loan repayments (home loans, car loans, personal loans, store loans, credit cards etc)
- and any other set commitments shown on your bank statements (child support, tax debts etc)
and it makes sure you have enough left over to comfortably afford your new loan's repayments.
And sometimes there's just not enough. And we're sorry.
We genuinely have your back and your best interests at heart. We will only offer a loan if we know it's really going to help you, now and in the future, and not put you in a worse financial situation.
Understandably a good customer is firstly shocked, and then greatly disappointed - how could they not be offered a loan when they have been such a good customer?
We honestly get it and we genuinely sympathise... which is why we are writing this blog. We can see it from their side and understand why they say;
"But I've always been a good customer of yours and have always repaid my loans!"
"But I own my home and I've never missed a payment!"
"But I've got a good credit score!"
So why can't we approve the loan, because they deserve the chance?
Because we're solid about having our customers' backs.
It's one of those defining "no" moments in life, when someone says "no, I'm sorry, it's honestly for your own good" but unfortunately it still hurts and we really do get that.
We just ask for any customer in this situation to please talk to us, discuss your current expenses with us, and we'll take the time to show you how the decision's been made and how soon a loan could be affordable.
In summary, please know if we ever have to say "no" - it's not forever.
Just please don't risk damaging your credit score by quickly applying to lots of other lenders, which will unfortunately set you back even more.
As a responsible lender we've taken the time to look at your financial situation and determine that a new loan is likely to put you under any financial stress, which is a situation neither of us want.
And we promise that as soon as you can comfortably afford a new loan, we'll be able to approve it, and more importantly support and look after you.
We only want you to go forward...
So please, choose to go forward with a responsible lender who cares about your financial future - and that's us!