Beware of scams and frauds – how to source genuine cheaper interest rate loans

The current situation with high inflation and rising prices is placing a lot of pressure on many individuals and businesses. Pressures which have most looking for the best deals in order to save when making major and minor purchases including when sourcing loans and finance. This can potentially draw some into falling for scams, frauds and loans which may look on the face of it a good deal, but in reality, are simply not. Following on from Scams Awareness Week, we update on how to identify scams and frauds and how genuine cheaper interest rate loans and finance are available from responsible lenders such as Jade Finance.

Know How to Identify a Scam

Whether it’s buying goods online or in person, spam emails, suspicious phone calls or in many other aspects of life, the threat of falling victim to a scam or fraudulent activity can be present. To increase awareness of this sort of activity the ACCC recently ran its annual Scams Awareness Week.

The ACCC advise that over $4 billion may be lost to scams and frauds this year as Scamwatch reports an increased amount of reports in 2021. The ACCC says that due to the recent data breaches which have been on a large scale, more Australians can be vulnerable to scams.

There are educational videos, information and a range of basic advice and tips available at the ACCC website and it is advisable to update yourself as the scammers are becoming more sophisticated. The outcomes of falling victim can be serious and include not only losing money, but theft of identity and long term impacts on future decisions especially in regard to sourcing loans.

Buying Second Hand Goods

Buying used cars, boats, motorbikes and other goods such as equipment is a very popular way to secure good quality goods at less than the price for new. With the supply issues in some markets, especially for new cars and many types of machinery, many buyers have had to turn to the used market to acquire the vehicles and equipment they need.

Purchasing from reputable dealers is usually a fairly safe way to buy. Used car dealers should be members of the MTA and many boat dealers and brokers will be members of the BIA. But if purchasing from private sellers or via online marketplaces, buyers should follow best practice guidelines.

For starters, refer to the PPSR to see if the goods are under finance. This means money is owed to the finance company and the seller would need to finalise this before signing the goods over to the buyer. Check consumer protections, guarantees and warranties for the type of goods and the jurisdiction as well as for the online marketplace. Always do rego checks to ensure the goods are not stolen!

It is always best to actually inspect goods of the type we are discussing before purchasing. Online photos and descriptions may not always provide a true depiction of condition. Before handing money over to sellers, do as much background checking as possible!

A special warning which was issued by authorities earlier in the year, is to watch out for used goods especially cars, which are flood damaged. Following the floods earlier this year, flood damaged vehicles were appearing for sale in various marketplaces without being identified as such. Be vigilant!

Also compare the pricing with new goods to ensure it is a genuine good deal. Due to supply issues in the motor vehicle market, the prices of used cars has been rising with some reports of very high prices for some popular models. When it comes to resale, insurance and even finance, it may actually be a better deal to wait to purchase new goods when supply chains return to more normal levels. This is starting to happen in the new car field.

If finance is required for the purchase of the used goods, if using Jade Finance, our consultants can assist with many of the usual checks on behalf of our customers. On finance, buyers of used goods should be aware that the interest rate on loans for used goods may be higher than the rate for new goods.

Lenders will typically advertise their cheapest available interest rate which is applicable for new goods and for loan applicants with a good credit rating. The rate for used goods is usually higher. Before purchasing, speak with us for a finance quote on new and used to compare.

Sourcing Genuine Cheaper Rate Loans

With interest rates rising as the RBA continues to increase the cash rate, there may be more pressure than ever to source the cheapest loan. Some buyers may be drawn into offers for 0% interest rate loans. Sounds too good to be true and it usually is.

These no interest loan are more often than not simply a promotional tool. The zero interest covers a short period of the loan term and once that expires, a higher interest rate usually applies. Higher than possibly could have been sourced through ourselves or other responsible lenders.

With all loans and finance, buyers are advised to deal with Licensed Credit Providers that adhere to the ASIC Responsible Lender Guidelines. Jade Finance is fully licensed and also a member of FBAA.

Interest rates do vary across the lending market as banks, finance companies and non-bank lenders set their rates according to their own specific guidelines and economic forecasts. This can make it more difficult, or at least more work, for people to identify the cheapest and the most suitable loan for their requirements.

Using our broker services can be a great help in this regard. Our business is based on our policy of securing cheaper interest rates on a wide range of consumer loans and business finance.   We achieve this as a broker-style lender through our vast lender accreditations. Our consultants handle each loan application on an individual basis and source the cheapest rates and most suitable loan for each customer from a large number of banks, finance companies and non-bank lenders.

Those planning to apply for finance can improve their prospects of achieving a cheaper interest rate offer by maintaining a good credit score and having a good balance sheet. That may mean paying off other loans, including credit card balances, prior to applying for new finance.

While authorities do their best to identify and bring down scammers and fraudsters, their tactics will persist and expand. Be aware, stay across Scamwatch for updates and when requiring loans and finance, use a licenced, reputable lender.

Contact Jade Finance 1300 000 008 for genuine, cheaper loans and finance.