Tips for borrowers

This is our first toe in the water for a LinkedIn newsletter so we will keep it brief!

4 things for today:

1. Why "Buy Now Pay Later Loans" are bad for you

With the rise in borrowing options offered by companies like Afterpay, you might be thinking they are a good use of your funds as they don't charge interest and you have time to pay. But, did you know that Credit Agencies who rate your creditworthiness rate them as a BIG negative.

Their logic is a bit convoluted but essentially they view them as a way for a consumer to get access to money they currently don't have.

So, if you are looking to borrow money, make sure you don't have any of these 'loans' in place.

2. Why "Extra Credit Card limits" are also bad for you?

Having access to extra credit can seem like a good thing - an available 'back up plan' when things go wrong. But, when you are borrowing money, that 'unused' credit card facility is used by your lender as part of your servicing cost.

So, your servicing cost increases for something you don't even use!!!

One thing we advise our clients is 'ditch the excess credit card limit' - until you have your loan approved. Once you are approved by your lender, by all means ask for an increase in your credit card limit - but don't use it unless it is for one of those emergencies!

3. We all need a plan!

Before you do anything in life, you always need a plan! No plan and no desired outcome = an aimless path. And no-one wants to be 'aimless' ??

So, if you are looking at borrowing from a lender to buy a home - either your first home or your 'replacement home', it is a great idea to know what you want to buy - and of course, whether you can afford your new dream home.

Our (free) property report tool helps you avoid wasting your time and gives you much needed information on your chosen property.

To get your free property report, just click the link below:

4. Don't throw away your hard earned money!

If you have borrowed money from a lender, particularly one of the big 4, don't be surprised if you are paying them more than they are charging their new customers.

It doesn't have to be that way!!! Our Guide on this topic will show you how to avoid throwing away your hard-earned $$$.

If you would like a copy of our Guide, ask for your copy by clicking the link below:

On behalf of the BIR Finance team, have a great day!

Michael Royal - 0411 190 474