Setting up a direct debit is a great way to pay for your goods and services on a recurring basis. Automatically and periodically taking out money from your account ensures that you pay bills, subscriptions, and membership fees on time and on a consistent and predictable basis. No more surprise late fees and fear-inducing final notice letters!
The catch is that a direct debit payment requires a sufficient amount of money in the bank account or credit card to which it is attached. If the business (or lender) you enter into a direct debit agreement with fails to withdraw money from your account due to inadequate funds in your account, you could be hit with a severe dishonour fee and potentially damage your profile with that lender. This ‘bouncing back’ is known as a direct debit dishonour. The next lender looks at it along the lines that if you are dishonouring or bouncing direct debits in your account, is their payment going to do the same? All lenders like to see that customers can manage their money. It usually does not matter if money is coming and going, it’s more to show that you can manage your money.
Luckily here at Rapid Finance, we can help you learn more about direct debit dishonours, what happens if you’ve been dishonourable, and how Rapid Finance can help you out.
How does a dishonoured direct debit payment affect me?
If you’re in the market for a loan, then you’ll need to ensure that your application is one that a lender will like. If a lender sees that you have repeatedly conducted direct debit dishonours in your bank account statements, the chance of your loan application being approved decreases. This could potentially mean that your plans to pay off a debt, purchase a home or a car, or fund an emergency with the loan you’re hoping to get could be severely delayed.
What should I do if I have a direct debit payment that has ‘bounced back’?
Make a list of the goods and services that you currently pay for via the direct debit system and assess whether or not they are essential. This can help you get a clear idea of where exactly your money is going.
Not only is it easy to set up a direct debit payment, but it is also extremely easy to cancel them.
If your direct debit payment is linked to your bank account, cancel it by contacting your bank. This can usually easily be done by using your respective bank’s app on your smartphone, talking to a representative over the phone, or visiting a branch.
If you’ve set up a direct debit payment with your credit or debit card, cancel it by contacting both your bank and the merchant. You can contact the bank via the methods listed above, and you can contact the merchant by just conducting a quick Google search for their best contact number and website.
How can Rapid Finance help?
As a general rule, it is a good idea to keep your bank account clear and free of direct debit dishonours.
If a customer does approach us in hopes of obtaining a loan with a severe amount of instances of direct debit dishonours in their bank statements, we will immediately alert them to the issue.
Depending on the nature of the customers’ financial situation and their needs, we generally recommend that customers clean up their bank statements for the next three months before we can assist them further.
Needing some more help?
If you’re looking for some more information on how we can aid you, you can start by filling out our simple online application form or you can call us on 1300 467 274 to speak to one of our trustworthy and knowledgeable finance specialists today!
On a side note, don’t forget about our wholesale cars. We offer a one stop shop to help you source a vehicle through our extensive wholesale network.
Through our network, we will do some extra checks on your behalf as well as inspecting the vehicle to ensure it’s a great vehicle.
We will also check :
There is no money owing on the vehicle
The vehicle has not been a repairable write-off
The vehicle has not in any serious accidents
We will check everything works on the vehicle
We will get the roadworthy for the vehicle
We will do a detailed inspection on the vehicle
Find out more info about our wholesale network vehicles https://gorapid.com.au/resources/wholesale-cars.