Finance and Loan Companies

Finance And Loan Companies

You may be wondering what debt consolidation means and why finance and loan companies are offering them. If you’ve found yourself juggling several small loans at once, a consolidation loan may be the best option for you in terms of managing your credit because of the benefits it offers.

But what is debt consolidation, and how does it work? Does it affect your credit score, and if so, how?

Here’s a quick breakdown of what to expect from finance and loan companies regarding consolidation loans and what they mean for your credit history.

What is debt consolidation?

Debt consolidation is a loan type many finance and loan companies offer where the borrower loans out a considerable sum to close or pay off other smaller loans, typically consumer debt or personal online loans.

Having multiple loans may be more expensive overall than having just one, and consolidating them – hence the name of the loan type – into a single loan can help you save funds on interest. They also add value to a person’s credit history, as duly fulfilled loan responsibilities will help improve your credit score. That's why debt consolidation loans are a powerful credit product.

What questions do finance and loan companies ask during application?

Finance and loan companies have their unique questionnaires regarding debt consolidation, but there are a few general ones that a borrower can reasonably expect.

Loan providers may ask you to provide proof of residence or address. A common requirement for loan applications is being a legal citizen or resident of the country the financial lenders operate in, and proof of address is a standard criterion for many Australian loan companies.

Another question to expect is to provide proof of identity. Because identity theft is a leading cause of credit fraud globally, many finance and loan companies now require proof of identity from applicants. Commonly disclosed proofs are government-issued ID cards, driver’s licences, or valid passports.

For debt consolidation loans, it stands to reason that the credit provider will ask which are being consolidated. Borrowers should expect a requirement for documents on existing loans and credit liabilities during the online application process, such as personal loans for students.

As a further example, if you have an existing holiday loan and a bike loan and plan to consolidate them, a copy of the itinerary or proof of vehicle registration may be requested, respectively.

Bank statements or proof of income may also be requested for your credit background – this information helps finance and loan companies determine which loan rates are best for your debt consolidation.

Stay alert for phishing scams and privacy breaches

Like many other finance and loan companies, we may ask for personal details like your current residential address or full legal name during the loan application review. We will not, however, ask for confidential personal information, such as bank log-ins or email credentials, whether by email, text message, or phone call.

If you’ve received any suspicious messages from a person or persons claiming to be from SocietyOne, email us immediately at customer.service@societyone.com.au or via phone call at either 1300 144 221 or 02 8397 9700.

Competitive credit at SocietyOne

SocietyOne incentivises creditworthiness by offering attractive loan rates than most traditional bank loans. The better your credit score, the more competitive the rates we offer.

SocietyOne doesn’t require you to pay monthly fees or early loan repayment charges – what you see in your loan agreement is what you’re responsible for, with no hidden charges.

We also have some of the most competitive rates for both secured and unsecured loans. Unsecured loans have a minimum loanable amount of $5,000 and a maximum of $50,000 payable in two-, three-, and five-year terms. Our secured loans, meanwhile, have the same minimum but a higher maximum of $70,000, payable in the same flexible terms plus a seven-year option.

When applying for a secured loan, please keep documentation of your asset ownership handy. Our team will request this information to help them personalise your loan offer.

How do I find legitimate finance and loan companies in Australia?

The main regulating body in Australia for credit products is the Australian Securities and Investments Commission (ASIC). The ASIC has an online database that you can access for free at any time.

When verifying your chosen credit provider, look for their licenced or registered name in the ASIC database. Utilise the ‘Search Our Registers’ sidebar on the front page and check for a licence number or registration number attached to your credit provider.

You can even search through the ASIC database for finance and loan companies with lapsed, suspended, or ceased licences under the ‘Credit licensees/representatives’ registry.

SocietyOne is fully licenced and registered as ‘SocietyOne Australia Pty Ltd’, under ACN No. 151-627-977. We are also part of the MONEYME Group, publicly traded on the Australian Securities Exchange (ASX).

Stay up to date on your credit score

SocietyOne has been providing effective and award-winning credit products since its first began operations in 2012. Since then, we’ve grown our platform to include a website, a mobile app, and an option to earn through consumer lending and invest in loans.

As one of the leading finance and loan companies in the lending market, we believe in financial literacy and responsibility, which is why we’ve expanded our resources to offer the Credit Score tool completely free to new and returning clients alike. To access it, look for the ‘Get My Score’ button. Because it’s powered by Experian’s credit database, you can preview an accurate, real-time credit score at any time, anywhere.

We also encourage you to join our club – just register an account with us through either our website or mobile app. It’s obligation-free, so you’re not required to have an ongoing loan or application with us to join. Club membership also gives you unlimited access to insightful resources on credit management, so you can take control of your credit and steer it to greater heights.

Take advantage of the resources at SocietyOne – get your rate when you apply for a personal loan today!