Did you know the equity you build in your property can be used to increase your wealth? At ALC you can use this equity to buy a 2nd property, get a loan for a holiday or even refinance so you are paying a lower interest rate! Even if you have poor or bad credit we can work with you to get a secured loan that is right for you.
If you to need to borrow a large amount of money, require a long loan term (over 5 years) or you have bad credit, then lenders are most likely to offer you a secured loan. This type of loan is great because it provides you with the opportunity to gain finance when you otherwise might not be able to get it. Perhaps you are looking to purchase a new car or finance home renovations. Secured loans provide you with the opportunity to do just this.
While secured loans provide you with a great opportunity to receive finance, better rates and more flexible loan terms, there are some factors which must be taken into consideration. When applying for a secured loan, it is important to note that in order to obtain the finance, you will be required to provide a personal asset as collateral. This means that if you fail to abide by the terms of the loan agreement, for example by continually missing repayments, then the lender has the right to seize the asset.
Before legally seizing the asset, the lender must give you prior warning and notice, so you have the opportunity to honour the terms of your agreement and repay what you owe to avoid any seizure of assets.
If you do find yourself struggling to keep up with repayments then there is still room for negotiation. The Australian Lending Centre cares about its clients and always look at asset seizure as a last resort. First, we can look to refinance your loan, or even consider debt negotiation to try to find a more manageable solution to help you pay off your debt. Just like with any loan, make sure to budget carefully and be careful not to fall behind on repayments otherwise the consequences can be terrible. From bad credit to having your asset used as collateral repossessed, always keep on top of your debts. If you need debt help then click here.
Personal assets which can be used to secure a loan could include your house, car, or even jewellery. It is also worth noting that you will rarely be able to borrow more than the asset for which you provide as collateral is worth. So, if you need to borrow $10,000 but the asset you provide is jewellery worth $5,000 then you may have to add more valuable assets, or reduce the loan amount.
In some cases, for example if you need finance for a house or car, you can use the asset for which you are borrowing money for as the collateral item.
If you are looking to borrow money for the mortgage on a new home, then you can use this property as your security.
Unsecured loans do not require any personal assets to be used as collateral to secure a loan. This means that while your risk to the borrowers goes up, the risk for you is minimal. If you fail to keep up with repayments and default on your loan agreement then you will not have any assets seized. However, your credit rating will still suffer, and you could end up being taken to court if you continually fail to comply with the agreed loan terms.
Because this form of loan is of greater risk to lenders, usually interest rates, additional fees, loan amounts and loan term lengths are far less favourable than that of a secured loan. Without a very good credit score it is highly unlikely that you will be approved an unsecured loan. If your credit score is good then lenders will have more trust in you to honour the agreement and will be more likely to approve your loan application.
Unsecured loans usually come with lower loan amounts, meaning these are best suited for things such as holidays, small home improvements, dental work and car repairs.
With an unsecured loan, you will still need to agree to a repayment contract, just as you would with a secured loan. This involves the repayment amount, length and interest rate associated with your loan. You are expected to honour this agreement, just as you would any other form of legally binding contract. Personal loans, credit cards and student loans are the most common forms of unsecured loans.
The process of applying for loans with bad credit is fast and efficient. Unlike traditional banks, private lenders require less documentation and offer more leniency. As a result, the process from applying to being approved and receiving funding can take a matter of days.
Our form takes less than 30 seconds and won't impact your credit score.
Once we get your enquiry, we will call to clarify details and get to know you.
You will need to upload your documentation so we can verify your information
Once your loan is approved, check and sign your loan offer.
Funds can be transferred in as little as 48 -72 hours from loan approval.