Julian Finch: Simple card trick that will help you save loads

Julian Finch, leading money expert, mortgage broker and founder and CEO of Finch Financial, is encouraging Australians to 'cap the card' in order to spend less, save more and improve their chances of securing a home loan.
 

With decades of mortgage brokerage experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes.
 

"80 percent of people who apply for a home loan spend too much of their income. It is easy to see that they could save so much more but they don't because they are not making the effort or don't have the will power," Finch said.
 

"All they have to do is put a spending cap on their credit card or block it altogether for days at a time, and it forces them not to spend.
 

"These types of things are easy to do thanks to the clever settings available through most banks' online portals."
 

Finch said that one simple habit of capping your credit card expenses can make a major difference to both your savings and your ability to get a loan approved.
 

"Cap the card simply means setting a hard spending limit on your transactions to control your outgoings. It forces you to live within a budget, shows financial discipline to lenders and helps you reach your savings goals faster," Finch said.
 

He outlines five key reasons why capping your card stops you overspending.
 

It enforces a financial boundary

"When you set a clear limit, you're less likely to mindlessly overspend or give into impulse purchases. A hard cap acts as a daily reminder of your bigger financial goals," Finch said.
 

"Adding blocks to your credit card actually forces you to stop spending altogether."
 

It improves your borrowing profile

"Banks closely review your spending habits. Capped spending shows lenders you are responsible with money, which can directly improve your chances of loan approval," Finch said.

It protects your savings

"By keeping your daily or weekly spending under control, you allow your savings to grow without constantly dipping into them to cover overspending," Finch said.
 

"It also forces you to change your mind on spending. If you can't buy it under your spending cap, then you shouldn't have it."
 

It reduces financial stress

"Knowing you have a firm limit helps take the pressure off. You are less likely to experience financial blowouts or struggle with 'bill shock' when your statements arrive," Finch said.
 

It builds better money habits for the long term

"Small spending decisions compound over time. Setting and sticking to a cap helps you develop discipline that will serve you well beyond the loan application stage," Finch said.
 

"Lenders want to see consistency, not chaos. If you can demonstrate that you have control over your everyday spending, you put yourself in a much stronger position to get the loan you want."
 

About Finch Financial Services

Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.

https://finchfinancial.com.au/