Budgeting Wisely at Christmas to Get a Loan Dec 24, 2020 | Blog Christmas is coming up so it’s important to start thinking about your budget over the holiday period. While we all love giving presents, if you’re looking at potentially applying for a home loan in the new year, it’s important that you don’t do any damage to your chances of getting finance by overspending in the next few weeks. What we do know, is that lenders take a snapshot of your financial situation when they assess your application for finance and if you’ve been busy racking up credit card debt, it might come back to hurt you in the future. Here are some quick tips from a home loans advisor for budgeting at Christmas. Allocate Money Upfront There’s a good chance that you will be spending this Christmas, so do it wisely. Make a budget and try and stick to it. Home loans broker and lenders will look at your bank and credit card statements from at least a three-month period, so if you’re looking to have a clean record for your loan application, it might be worth keeping the charges down. One idea could be withdrawing cash and paying for things with physical money, that way you can allocate funds upfront. Another budgeting idea is to simply spend a fixed amount per person. That way you can allocate a pool of money and everyone gets a fair deal. One of the big traps that a lot of people fall into is minimising the spending at Christmas, only to get sucked into all the Boxing Day and holiday sales. When you’re allocating your Christmas budget, it might be worth applying that to the entire holiday period. Don’t overextend yourself While any credit card debt isn’t great, the worst thing you can do is take on more credit cards. When it comes to borrowing money, your current debt is just as important as how high your credit limits are. If things are a bit tight on your loan application, it might even be worth getting rid of your credit cards to boost your borrowing capacity. This is tough to do if you have outstanding balances and it’s even more difficult if you can’t pay them off. Invariably, if people have the money (or credit) at their disposal, they tend to spend it. Keep both the credit card spending down and certainly don’t take out any new cards in the coming months. Even if there are some great sales on. Avoid Buy Now, Pay Later These days, everyone is moving toward the buy now, pay later (BNPL) phenomenon. While it might be convenient, you don’t want these types of payments to impact your chances of securing a loan. While BNPL isn’t technically an application for finance, it could impact your credit score. More importantly, a lender or home loan broker sydney will make an assessment on what type of borrower you are and if you have hundreds of these types of payments coming out of your account, it won’t look that good on the application. These days, every lender will assess your credit score and go over your bank details with a fine-tooth comb, so it is important to have things in order. Christmas is an incredible time of year and it’s great to give to family and loved ones. Just don’t overdo it or it could cost you a lot more in the long run, when the time comes to get a loan approved. Why YFA? Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority. We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through our home loan expert. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. What makes us stand out from others is the utmost trust from our clients who have trusted us. Our home loan broker is always there to assist you. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Our home mortage experts try to the best of our abilities to be a sane, and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance. Credit Rep Number – 418883 | ABN – 81195166233 Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.