Tag: bad credit history

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Bad Credit Loans Personal Loans

Personal Loans For People With Bad Credit History

personal loans for people with bad credit history
Do you need a loan, but bad credit is holding you back?

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. 
personal loans bad credit

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.

bad credit history personal loans

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.

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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.

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Financial Fitness

How Do I Fix My Credit Score?

fix my credit score

A bad credit report can cost you thousands of dollars in interests, penalties and fees and many people have asked us “how do I fix my credit score?”. It may also block you from getting a promotion or possibly from getting a promotion or the best deals for a dream car. Here are tips to answer your question.

Request for free copies of your credit file 

…from the major credit reporting bureaus in the country. It is important to check your file if you want to start repairing your credit score.

Examine your files to know exactly the areas that you need to work on. For example, if you have a terrible credit history, it will be helpful if you can check which accounts you have missed paying, and when you started doing so. If you have done poorly because you always maxed out your credit cards, it may be time to refer to those accounts so you will know which card to stop using for the moment. At the same time, it would also help you check whether you have defaults on old accounts so you can settle them as soon as you can.

Dispute credit errors

It is your right as a consumer to get correct credit report. The law allows you to dispute errors by sending a dispute letter to the credit bureau that listed inaccurate entries.

Remember that errors are costly. They can seriously hurt your credit score and bring it down by over a hundred points. What’s worst, you may not qualify for low interest loans simply because of data entry errors or failure on the part of the creditor to update your credit information. It is also a good opportunity for you to correct wrong information that indicates identity theft or credit card fraud.

Minimise your credit card balances

Don’t go beyond 30 percent of your credit limit. Pay all your balances for the month, and when you use a card, make sure that you keep those card balances low to boost your score. If you are having a hard time in paying multiple credit card balances, you can get a personal loan to consolidate them—not only to boost your score but to save money on interests. It is also easier to remember repayment schedule because you only have one lender to think of, so your chances of missing payment is very low.

Lower your utilisation rate

It is not enough that you pay balances in full each month. If you have a higher utilization ratio than 30%, they will still add weight to your monthly balances. One of the best ways to deal with it is to make sure that you make multiple payments throughout the month, to lower your balance. But, not all credit card providers allow this. So, it is important to stick to your credit limit at all times.

Will paying nuisance credit card balances fix my credit score?

Do you have small balances on a number of credit cards and you haven’t paid them yet?

If you want to boost your score, eliminate all the balances on your cards. Instead of charging $50 on credit card A and another  $50 on credit card B, why don’t you just charge them all in one card with a low interest rate, and pay it all off each month?

Don’t get old accounts off your credit report

True, you want to get rid of negative items because they are bad for your report. But, your score will improve when the oldest paid account remains there. The old debt on your credit report like a mortgage or car loan is not bad, so don’t be in a hurry to get it removed from your file the minute you get your debt paid off.

Most of the negative items are really bad for your credit score. But, they just disappear from your credit file after seven years so don’t argue to get your old paid accounts eliminated from your file. Even if it showed that you missed a lot of payments—just keep them there. At least, you were able to show that you managed to repay after all.

Then of course, there are good debts. A good debt is the account that you’ve handled well and paid on time. When it appears on your file—your score will be better simply because you have a long history of good debt. Lenders will also look at your application favorably knowing that you have been a responsible borrower for a long time.

How do I fix my credit score when I have good and bad debts?

In a nutshell, leave your old debts alone, pay all your balances. Don’t close accounts, especially those where you had solid repayment record—because it will eventually boost your score and increase your chances of getting favorable loans. For a shortcut to fix credit history, contact Clean Credit.

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Bad Credit Loans

No Guarantor Bad Credit Loans Explained

no guarantor bad credit loan

Having bad credit can be stressful. That’s because a bad credit history has immediate consequences on your financial future. It impairs your ability to get a home loan, a personal loan or any other form of credit. If you’ve defaulted on loan repayments, applied for a credit card or entered a debt agreement, all these aspects can significantly affect your finances for years to come. Fortunately, no guarantor bad credit loans are a possibility. Find out your options below.

How can I get approved for bad credit loans?

Obviously, there are some things you can do to maximise the likelihood of getting a suitable loan, such as the following:

Avoid making numerous credit applications simultaneously

This may seem like the guaranteed way to obtain a loan; in fact, the more applications, the higher the odds of getting a loan, right? In fact, that is far from being true. This is a red flag to lenders, even for those who provide bad credit loans. This strategy could deter you from accessing credit in the future. If you already did that, you should at least wait for a while until you make other applications.

Use a personal loan calculator

Personal loan calculators can be genuinely helpful. You can use one to determine if you can afford to make repayments for a certain loan or not. Bear in mind that lenders will accept your application only if you have the financial means to make repayments. This applies to both bad credit loans and conventional loans.

getting-loan

Check your credit score to know where you stand

Let’s say that you already know that your credit rating isn’t the best. However, we advise you to have it checked. This way, you can verify your standing point. Apart from that, your credit rating may contain mistakes and inaccuracies. In this case, you can have them corrected.

What are my loan options if I have bad credit?

If you want to get approved for bad credit loans without a guarantor, this reduces your options. The primary reason why it is recommendable to opt for guarantor loans is that this increases your reliability as a borrower, maximising the likelihood of obtaining the desired financing. However, you can also opt for the following:

Secured personal loans

An option would be getting a secured personal loan, involving collateral such as the equity in your home or another significantly valuable asset. This way, a lender would be more willing to provide you financing, overlooking the negative listing on your credit history.

However, the obvious risks that come with the territory are that if you default on the loan, you’ll end up losing the asset placed as security. Even so, without collateral and guarantor, your chances of getting a loan are minimal, unfortunately.

Short term loans

If you want to borrow a fixed sum, up to $2,000, you could pick a short-term loan from a payday lender. The thing is that these lenders don’t concentrate on your credit history. In fact, they are much more focused on your current financial possibilities and capability of making repayments.

check-options

What Else Should I Consider?

It’s important to note that bad credit loans with no guarantor are high cost. This is a general rule. So, you should know what to expect if you do decide to go for it. Obviously, these loans involve high risks for the lender. Therefore, it makes sense that the lender would charge enormous fees.

And lastly, bear in mind that numerous disputable lenders operate in the realm of bad credit loans. In other words, you should pay attention to scammers that might claim to solve all your financial difficulties, irrespective of their severity.

So, we strongly recommend you to double-check each loan and its specifications noted in the fine print before signing any documents. ASIC has actually warned Australians that they should be doubly wary when it comes to applying for bad credit loans due to the high-interest fees and inflexibility. Apart from that, the repayment period could be shorter than in the case of conventional loans, which would make it even more challenging for you to deal with the situation.

Additionally, make sure you factor in the additional fees, which are added to the costs of the loan, aside from the interest rates.

Conclusion

When you apply for a no guarantor credit loan, you should be wary and attentive to the loan terms. If your financial position allows you, you should wait a while until you may afford to get another type of loan, to avoid paying a significant amount of money in interest fees and other charges.

By all means, choose a reliable lender. On that note, contact us for a free consultation and assessment for your loan enquiries as our experienced specialists are keen on helping people with bad credit and provide them with excellent services. Call us now on 1300 138 188 or enquire here for our bad credit loan option today.

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Mortgage

Is a Second Mortgage a Wise Investment for People With Bad Credit?

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Not sure whether to get a second mortgage is a wise investment for people with bad credit or not?

Here are a few things to keep in mind before conditioning your mind into making new monthly mortgage payment again.

Some people don’t think second mortgages a wise investment

Some people, especially retirees don’t like the idea of carrying a second mortgage throughout retirement, despite the thrill of reinvesting the money into something lucrative. New homeowners with enough home equity to use for good business ventures also don’t think that the second mortgage is a brilliant financial strategy? But, just like any other investment-carrying, a second mortgage can be a good idea in certain situations, but there can be drawbacks too

Here are two factors you must consider before hopping into second mortgage loans for people with bad credit.

Home equity is a second mortgage

Do you have more than enough equity to take the plunge? Don’t wait for another housing bubble to burst. Use your equity as a form of leverage before the home values plummet sending many mortgages down the sink. Know where your equity stands, before you sign up for a new loan.

Since second mortgages allow you to borrow up to 80% of your home’s value-it is not enough to know how much you can borrow, but how much you can repay. While the second mortgage has lower interest rates than other types of loan, remember that you are still securing the loan with your home. While it reduces the risk for your lender, it increases the risk on your part-because inability to pay it could mean losing your own home.

Diversification

A lot of people suffered during housing bubbles because they got fooled by attractive real estate returns in the past years. But, those who opted to get a second mortgage to diversify their portfolio were able to do better and can be expected to do so in the future.

You are shifting your assets from your home by getting a second mortgage and investing in ETF’s or mutual funds or in a business venture, thereby diversifying your portfolio to enhance your net worth.  Aside from the fact that diversified portfolio outperforms residential real estate returns, getting a second mortgage is also tax-deductible. So, if your home makes up a huge portion of your net worth, it is advisable to get a second mortgage and use it as a tool for diversification. But, despite the potential advantages of this strategy, it can also have some side effects.

If you want to take out a mortgage as a form of leverage, you should know how to handle your other investments wisely.  Remember that by getting a second mortgage to diversify your assets, you also expose your home and your additional investments to risk. Increased risk exposure requires increased wealth management strategy as well.

In short, if you are scared of downward fluctuations, make sure that you have personal skills to handle all your new investments before you get a second mortgage for diversification purposes.

Learn more about second mortgage loans for people with bad credit and the financing options available for you by talking to Australian Lending Centre’s credit consultant today!