10 Common Loan Mistakes Australians Make (and How to Avoid Them)

When it comes to securing finance, whether it’s a car loan, business loan, or personal loan, small mistakes can cost you thousands. At Sherlock Loans, we see these slip-ups all the time. The good news? With the right broker by your side, they’re easy to avoid.

1. Not Comparing Lenders

Too many borrowers accept the first loan offer they see. A broker like Sherlock Loans compares over 40 lenders to find you the best fit.

2. Ignoring the Loan’s True Cost

A low advertised rate might look appealing, but fees and charges can add up. Always check the comparison rate.

3. Choosing the Wrong Loan Type

Using a personal loan for business expenses or a car loan for debt consolidation can mean higher costs. The right product matters.

4. Overestimating Your Budget

Borrowing more than you can comfortably repay can put you under financial strain. A broker can help you set realistic limits.

5. Not Checking Your Credit Score First

A poor credit history can limit your options. Knowing your score before applying gives you a chance to fix issues.

6. Applying to Multiple Lenders at Once

Every application leaves a mark on your credit file. A broker can find the best option from multiple lenders without damaging your score and then submit just one application

7. Not Reading the Fine Print

Loan contracts can be complex. A broker explains the terms so there are no nasty surprises.

8. Ignoring Loan Flexibility

Some loans have penalties for early repayments. If you want the option to pay off your loan faster, make sure it’s allowed.

9. Focusing Only on Interest Rates

Features like redraw facilities, repayment frequency, and balloon payments can be just as important as the rate.

10. Not Using a Broker at All

A professional broker saves you time, money, and stress by doing the hard work for you, and can often secure deals you can’t get on your own.

Bottom line: Avoiding these mistakes can save you thousands and speed up approval times. At Sherlock Loans, we help everyday Australians secure the right car loan, business loan, or personal loan, without the headaches.