Is your personal credit history less than ideal? You’re not alone. Bad credit can happen to anyone. There are times when bad credit may not be your fault – like dodgy housemates who skipped paying rent or a bill you never received. Bad credit can make it challenging to apply for loans, even smaller personal loans. At the Australian Lending Centre, we offer judgement-free solutions and personal loans for people with bad credit history.
What Causes Bad Credit History?
Bad credit history occurs due to any number of factors, the most common causes are:
- Not adhering to your credit agreements. Late payments, missed payments or not paying the minimum required each month impacts your credit rating.
- Declaring bankruptcy. A declaration of bankruptcy frees you of your financial obligations on outstanding loans and lines of credit. However, it significantly impacts your credit history, often prohibiting you from borrowing for a number of years.
- Only paying the minimum required each month. Clearing debt fast can help keep your credit rating on track.
- Identity theft. If you feel that there’s a mistake in your credit history, it could be due to identity theft. Always closely monitor your accounts and immediately flag suspicious activity with your bank or lender.
- Choosing the wrong credit product. Choosing excessive limits with high interest can mean you’ll never get on top of the loan. Always research before taking out a line of credit or loan and ensure you can service it properly.
- Having no credit history. Even if you have never borrowed money or defaulted on repayments your score may be low. This is simply because there is no history to rate your borrowing behaviour off.
How Do I Know If I Have Bad Credit History?
Applied for a loan and had it knocked back? Check the feedback and the reason should be indicated. If not, check with the lender. The likelihood is that you either have bad credit or not enough income to service the loan amount. Personal loans for people with bad credit history can be extremely costly and hard to obtain. Therefore, it is best to fix the root of the problem.
If you’re concerned that you may have a bad credit rating, it is possible to check this prior to applying for a loan. Your Credit score can be checked online for free here. You can also go into greater depth by checking what listings are dragging your credit file down.
We recommend speaking to Clean Credit who can talk you through your credit file. Clean Credit are credit repair specialists, capable of improving your credit rating. By engaging with a credit specialist, you can not only check your credit history but also improve it.
What Kind Of Personal Loans For People With Bad Credit History Are There?
Even if you have a bad credit rating, there are personal loans for people with bad credit history. However, you may need to look a little harder to find one that is suitable. You will also need to do your research to ensure you do not get taken advantage of by loan sharks. This can plunge you further into debt.
There are many reasons to take out a personal loan. A new car, renovations, holidays or even to consolidate and pay down existing debt. As applying for a loan (and getting knocked back) can further damage your credit score, it is best to engage the help of a professional who can assess your eligibility prior to applying.
The kind of loan you will be offered will depend on your particular circumstances.
- Secured bad credit personal loans. These loans are taken out against an asset that you offer as security. Something like your home or car.
- Unsecured bad credit personal loans. If you do not have an asset to offer as surety, there may still be a solution for you. The experts at the Australian Lending Centre can help.
Loans taken out with bad credit history will often incur higher interest rates. This is due to you being viewed as high-risk. You will also find that there are limitations to the amount you are able to borrow. Banks are risk-averse and usually unwilling to lend to those with bad credit history. By using a private lending specialist, personal loans for people with a bad credit history are much easier to source. Australian Lending Centre specialise in finding you the right loan product – within as little as 24 hours.
Don’t Let Bad Credit Hold You Back
Avoid bank barriers and loan scams. Take charge of your credit history and secure the loan you need to move on with your life. Personal loans for people with bad credit history are possible with careful planning and support. Let the Australian Lending Centre help you to get your finances on track here.
Our commitment is to helping you find solutions and ensuring you are empowered to make more informed choices moving forward. If you need help to assess your credit or apply for a personal loan with bad credit history, contact the Australian Lending Centre today on 1300 138 188.