When you apply for a loan, the last thing you want is a mountain of paperwork. We completely get it.
But sometimes, a broker will ask for documents that might seem unnecessary at first glance, such as your partner’s payslips, even if your partner isn't officially going on the loan.
This week’s case study perfectly highlights why we ask for those extra details.
It is never to create more work for you; it is a deliberate strategy to improve the chances of a fast approval and to protect your credit report from unnecessary applications.
Customer of the Week
Late on a Monday afternoon, a customer working part-time reached out to us.
She had been referred by our partner dealership in Blacktown and had her eye on a 2013 Mazda BT-50. The price was $11,000, and she had a $1,000 deposit ready to go.
On paper, she had an absolutely stellar Comprehensive Credit Score that was over 950, so a small loan should be no problem, right?
Well, there were still a few curveballs to navigate.
Given that near-perfect credit score, we also had to be very mindful about protecting it.
However, getting that certain approval meant addressing a few challenges prior to finalising an application.
The Roadblocks
1. Tight Affordability (Serviceability)
While her credit score was amazing, her affordability was incredibly tight.
She was working part-time and supporting three dependents.
2. The Vehicle Age
The BT-50 she wanted was a 2013 model.
At 13 years old, the vehicle falls outside the maximum age limits for most standard secured car loans, meaning a traditional auto lender would simply reject the loan based on the asset.
3. A Strict Time Turnaround
Our customer lived a full 6 hours away from the dealership.
She wanted to drive down, view the vehicle, sign the paperwork, and wait for the bank to settle the funds all in one day.
So, we needed to be confident of the outcome and able to secure it as fast as possible.
The Gusto Strategy
Utilising Household Income
Some lenders allow for household income to be considered rather than just that of the individual.
This is a huge benefit for those living with their partner.
We recommended including her partner’s income in our assessment.
Even though her partner wasn't applying for the loan, supplying his payslips allowed us to paint a complete picture of the household's financial strength.
Because lenders need to verify these details rather than just take our word for it, taking the extra step to gather this paperwork upfront meant we could easily clear the strict serviceability hurdles.
This also provided much more certainty of the outcome.
Opt for a Competitive Unsecured Loan
The age and quality of the vehicle are irrelevant if going for an unsecured loan.
Given the strong credit score of the customer, she was still able to qualify for a rate of ~10.8%, which is lower than a lot of secured car loans on the market.
To minimise the risk of any excess waiting time at the dealership, we also suggested a comprehensive video tour of the car with the dealer instead.
This allowed her to make a decision, settle the finance, and arrive knowing the vehicle was ready to go (subject to a final inspection, of course).
The Result
She provided the extra documents, and we submitted the file on Tuesday. Because we had put in the groundwork to perfectly position her application, the approval came back in under 5 hours.
We had the contracts signed by 5:30 PM, and our team pushed the lender to settle and transfer the funds after hours that exact same night.
By Wednesday morning, the money had landed safely in her account.
She was able to make the 6-hour drive down knowing the loan had settled and the keys were waiting for her!
The Takeaway
A great broker does a lot more than just fill out a form.
Sometimes we request an extra document because we know exactly what a bank’s credit assessor is going to look for.
By gathering the right information up front, we can ensure you get the fastest, smoothest approval possible.
When Unsecured Car Loans Make Sense
Most car loans in Australia are secured, meaning the bank uses the vehicle itself as collateral.
But what happens if you want to buy an older used car (like the 13-year-old Mazda in our case study), a unique import, or a vehicle that standard banks simply refuse to accept as security?
That is where an unsecured car loan can be a useful alternative.
Because the loan isn't tied directly to the asset, the lender doesn't care about the age or make of the vehicle.
While interest rates can occasionally be higher than a secured loan, borrowers with strong credit scores can still lock in incredibly competitive deals.
Read the full article here
More from the Gusto Group
Gusto Finance is part of a broader family of businesses built to help everyday Australians across every stage of the buying journey:
- 🏠 Gusto Home Loans: We do for home loans what we do for car finance. Whether you’re buying, refinancing, or just want to know your borrowing power, our team compares options across a massive lender panel.
- 🚗 Gusto Auto: Our Brisbane-based used car dealership. If you want a seamless experience, you can buy a quality used vehicle directly from us while Gusto Finance handles the loan.
- 💸 Gusto Cash: Need access to funds fast? We provide flexible personal cash loans for when life happens outside of a standard car or home loan.