Tag: bad credit loans

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No Credit Check Loans Bad Credit Loans

Can I Get Bad Credit Loans With No Credit Check

Bad Credit Loans With No Credit Check
Bad credit loans with no credit check could unlock solutions even if you've been rejected elsewhere.

It seems too often that banks reject borrowers and leave a big question mark over what they can do next. One excellent option is seeking bad credit loans with no credit check. This can be the light at the end of the tunnel for Australians struggling with bad credit.

For most, a credit score is just a number, a number that holds little value until the day you try to borrow money. This number will determine how much you can borrow, at what interest rate, and who will lend to you.

When borrowing money, most lenders use your credit score to apply a “risk rating” and analyse your repayment capabilities. If you have what is considered to be a low score (generally lower than 500), the banks may use your credit score as a reason to reject your application for a loan. 

The credit scores and credit reports page on Moneysmart.gov explains how Australians can view their credit score and access their credit file.

Common questions regarding bad credit loans with no credit check

Why would a lender approve a loan without checking credit history?

Some lenders prioritise your current financial situation over past credit records. If you can comfortably meet repayments with your income and if your expenses and current debts aren’t an obstacle, then lenders might perceive you as a low-risk borrower.

Your borrowing history does not influence bad credit loans with no credit checks because a hard enquiry is not applied. However, your loan will likely need to be secured against a personal asset since the risk is on the lender.

Remember, a bad credit loan with no credit check is set according to your budget. You will only be approved an amount that the lender deems appropriate. They must be confident that you’ll be able to pay off the loan.

Do no credit check loans come with high interest rates and fees

Do no credit check loans come with high interest rates and fees?

This depends on how trustworthy you appear in the eyes of the lender. The greater the risk you pose, the higher the interest rates will likely be.

The maximum cap on interest rates in Australia varies from state to state. In New South Wales, the maximum interest rate that you can legally be charged is 48%.

On top of interest rates, some lenders also charge other fees, including:

  • Establishment fees
  • Management fees
  • Processing fees

Research is important when you’re looking to obtain any form of finance, particularly bad credit loans with no credit check. Choosing the best solution is important so you don’t get trapped in an agreement with high interest rates and fees or with a non-reputable lender. Just take time to understand what you are getting into and pick your lender wisely. Checking their reviews is always a good place to start.

How fast can I get a no credit check bad credit loan approved?

No credit check loans for bad credit are typically assessed and approved faster than traditional loan applications. Less documentation is typically required, there is no analysis of a person’s credit history, and the structure tends to be more flexible since there is legislation in place for private lenders.

With a bad credit loan with no credit check, you could receive approval within as little as 24 hours. Moreover, most lenders within this space allow you to complete your application online, which facilitates the entire process quicker.

Who is eligible for bad credit loans with no credit check

Who is eligible for bad credit loans with no credit check?

The eligibility criteria for this type of loan are quite flexible, making it accessible to individuals with both good and bad credit scores.

Nonetheless, applicants must be at least 18 years old and demonstrate a steady income. Proof of employment and Australian residency may also be required. Furthermore, lenders will need to assess any existing loans or significant financial commitments.

What key factors should be considered before applying for finance?

Every applicant has a different purpose for their bad credit loan. But no matter the reason, there are a few standard questions that each should ask.

  • What is the purpose of the loan, and is it necessary? If you need the money for a luxury expense, such as a car or a holiday, just be sure of your decision first.
  • Can you afford this loan and make repayments on time? If not, additional dishonour fees or, worse, legal action could be applied. If the loan is secured, then assets could be seized.
  • Are there any hidden fees or terms that could apply throughout the agreement? Be sure to always carefully read any fine print (even if it is really, really boring).
  • Have you considered alternative funding options or solutions? Perhaps a family member or friend could assist you. Maybe you could find another extra source of income to tide you over.
  • What is the total cost of borrowing, including interest and fees? Again, consider whether the loan is worth it in the grand scheme of things.
  • How long will it take to repay the loan, and are you comfortable with the repayment frequency and timeline? To avoid dishonouring, try to line up repayments with when you get paid. If the agreement means you will be tied up to repayments for an extensive period of time, think about the consequences.
  • What happens if you encounter financial difficulties during the loan term? Are you certain that your income is stable and unlikely to change? What is your plan B if not?
  • Is your credit score actually bad? Sometimes, people assume they have a poor credit score or don’t check it regularly enough to know the truth. Always check your credit score first (it’s free!) before doing anything else. With a good credit score, you could benefit from better interest rates, improved loan terms, lower fees and greater loan amounts.

What can you use a no credit check loan for?

bad credit loans with no credit check

No credit check loans for bad credit provide a quick and hassle-free application process and the opportunity to get an injection of cash without worrying about your credit score taking a hit.

They are especially beneficial for individuals with less-than-ideal credit histories who want to avoid further impacting their credit scores with multiple inquiries.

The available loan amount for a bad credit loan with no credit check is typically lower (generally around $500 to $5,000) than a standard personal loan, making them perfect for smaller expenses such as urgent dental or veterinary expenses, school fees, travel, or even moving house.

Ways to protect your credit score in the future

There are some simple tactics to avoid a low credit score:

  • Pay on time, every time: We cannot stress this enough. Always repay any finance on time, whether it is a loan, credit card or store finance. Everything that goes through a traditional lender will typically appear on your report.
  • All credit is good: Since comprehensive credit reporting (CCR) came into effect in 2018, positive credit records can now contribute to an improved score. Therefore, not having any credit at all is not helpful for your report. All credit is good – as long as you stay on top of repaying it. Having no mortgage, a prepaid mobile instead of a contract phone, and no credit card – all mean your credit score will not improve.
  • Utility suppliers matter: Always pay these bills on time.
  • Keep an eye out for mistakes: Check your credit report at least annually. Sometimes, lenders make inaccurate listings or incorrectly mark a repayment as unpaid. If you notice a mistake, then report it.
  • Don’t make multiple credit enquiries: If a credit enquiry is listed on your credit report when applying for a loan, your score can be dragged down. Not only this, but many enquiries in a short space of time can put a big red flag on your head.
  • Try to maintain a credit utilisation ratio of <30%: If you have spent less than 30% of what is available on your credit card, this will likely affect your credit score positively. If more than 40% of your available balance has been spent, then the opposite effect can be experienced.
Ways to protect your credit score in the future

Bad Credit Loans With No Credit Check Australia-wide

The good news is that there are options available to you when you have a low credit score but need a loan. Australian Lending Centre provides bad credit loans with no credit check even if you’ve been turned down elsewhere.

Apply online or speak to our team today if you seek help.

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Bad Credit Loans

How to get Low Credit Score Loan Approval – Tips & Tricks

how to get low credit score loan approval
Do you have bad credit?

Do you have a low credit score? Are you worried about facing loan rejection? Do you want to learn how to save money on loans? We discuss the key points to consider when you are looking for a loan with bad credit.

Learn how to budget for a loan, understand what lenders look for when evaluating a loan application, and discover the tips and tricks of how to get low credit score loan approval in Australia below.

What is a low credit score loan?

As the name suggests, a low credit score loan (also known as a bad credit loan) is designed for individuals with less-than-ideal credit histories. Traditional lenders often hesitate to extend credit to individuals with low credit scores due to the perceived risk of default.

However, low credit score loans overlook this perceived risk and instead focus more on a client’s ability to pay. Therefore, income and expenses play the largest factor when determining whether to approve or reject an application.

Bad credit loans may come with higher interest rates and stricter terms compared to conventional loans, reflecting the increased risk for the lender.

One thing to note when considering how to get low credit score loan approval is that the interest rates are typically higher than a standard loan. Despite this, they can provide a lifeline for individuals in need of financial assistance, allowing them to access funds for various purposes, such as consolidating debt, covering unexpected expenses, or making essential purchases.

Why do I have a low credit score?

Understanding why your credit score is low is crucial for improving it. Several factors can contribute to a low credit score, including missed payments, high credit card balances, or a limited credit history.

Furthermore, listings such as defaults, court judgements, bankruptcy, or foreclosure can cause extreme damage to your credit score. In some cases, a black mark can remain on your file for years.

If you need money fast and have a bad credit score, concentrating on how to get low credit score loan approval is a good idea that won’t involve your past being judged.

How can I improve my credit score

How can I improve my credit score?

Improving your credit score demands effort and strategy. Begin by reviewing your credit report for errors and dispute any discrepancies with the credit bureaus. This can be tedious and tricky, but a credit repair company can do all of this on your behalf.

Prioritise paying off any unpaid debts and ensure that bills and debts are paid in a timely manner moving forward. Payment history significantly impacts your score.

A credit score can also increase by lowering credit card balances and diversifying your credit mix by responsibly managing various types of credit accounts, including credit cards, personal loans, and mortgages.

5 Top tips when applying for loans

1. What lenders look for when assessing a loan application and how to get low credit score loan approval

Credit Score:

Income and Employment History:

  • Virtually all lenders evaluate your income and employment history to ensure a stable source of repayment.
  • Documentation like payslips, tax returns, or bank statements may be requested for verification.
  • Australian Lending Centre only requires online bank statements to make a decision.

Outgoings:

  • Lenders assess your debt-to-income ratio (DTI) by dividing your total debt amount by gross (pre-tax) monthly income. For example, if your total debts (including the proposed new debt) total $200,000, and your total monthly income before tax is $65,000, then your DTI would be 3. A score of 3 or less is considered low, making approval chances higher.
  • Lenders also examine your other average monthly expenses (groceries, entertainment, rent, car insurance) to determine how much you have left over to put towards new loan repayments.
  • Lower outgoings relative to income increase approval chances.

Payment History:

  • Your track record of timely payments on debts is crucial for many lenders.
  • Missed or late payments can raise concerns and impact creditworthiness negatively.
  • From bank statements alone, lenders can get a good idea of how many times you’ve dishonoured in the past few months.

Other Factors Considered:

  • Lenders also weigh factors like assets, existing debts, and loan purposes.
  • Evaluation means that informed decisions can be made on loan approval and terms.

2. What to do after facing loan rejection


Although loan rejection can be disheartening, it’s crucial not to lose hope. Instead, view it as an opportunity to reassess your financial situation and put your energy into alternative solutions, including how to get low credit score loan approval.

It’s always a good idea to review the reasons for rejection provided by the lender to address any weaknesses. You could also seek feedback or guidance from a financial advisor if necessary.

Strengthen your credit profile by paying down debts, improving your credit score, or providing additional documentation.

How to budget for a loan

3. How to budget for a loan

Assessing your financial situation before applying for a loan is crucial to determining a comfortable borrowing limit. The best way to do this is by creating a budget that clearly lists your income, expenses, and existing debt obligations:

  • Income: List all income sources, including wages and bonuses.
  • Expenses: Identify fixed expenses (expenses that remain the same each month) like rent, phone plan and insurance. Next, factor in variable expenses (expenses that change each month) such as dining out, groceries and entertainment.
  • Debts: Figure out how much money you spend on debt repayments each month.

From this, you will have a remainder amount which will be a surplus or a deficit:

Surplus: You’re left with a positive number after taking expenses and debts away from your income. The greater this number, the more you will likely be able to borrow.

Deficit: If you are left with a negative number after running your budget, it’s incredibly unlikely that you’ll be approved for a loan. If you are unable to afford your current debt repayments, taking out another loan risks falling into a debt cycle. Rather than taking out a new loan, you should consider Debt Consolidation or Debt Relief.

Lastly, use a loan calculator to estimate monthly payments based on loan amounts, interest rates, and terms. This helps you find a suitable loan amount and repayment term aligned with your budget and financial objectives.

4. Ways to save money on loans

While low credit score loans may entail higher interest rates and fees than those with good credit scores, there are ways to cut costs and reduce borrowing expenses.

Shop around:

  • Start by comparing loan offers from different lenders. Each may offer varying interest rates, terms, and fees, so exploring your options for the best deal is crucial.
  • Online comparison sites can be good for this but beware of biases between comparison websites and listed lenders.
  • Remember to specifically seek out lenders who communicate well and are transparent about fees and interest rates. Also, be sure to check for reviews.

Boost your credit score first:

  • Loans with no credit check will always come with slightly higher rates than standard personal loans, so always focus on improving your credit score before anything else.
  • The greater your credit score, the greater your leverage.
  • Small improvements can qualify you for better terms and lower rates, ultimately saving money over the loan’s duration.

Choose shorter loan terms:

  • Although longer terms offer lower monthly payments, they often mean higher interest rates and more interest paid overall.
  • Whatever the loan type, whether it’s a bad credit loan or a mortgage, a shorter term lets you pay off the loan sooner and save on interest.

Be cautious of add-on products or services:

  • Some lenders offer “extras” such as credit insurance or extended warranties.
  • While they might seem attractive, they can unnecessarily increase your loan costs, increasing the overall expense of borrowing.

Consider how much you actually need to borrow:

  • The more you borrow, the longer the loan repayment duration will be.
  • The longer the arrangement, the greater the overall accrued interest and the greater the chance of falling behind on repayments.

Always pay on time:

  • This one is non-negotiable and we cannot stress the importance enough.
  • Do not apply for the loan if you are not 100% confident that you will be able to make timely repayments.
  • Missed repayments damage your credit score, appear as a dishonour on your payment history and often incur a late payment fee, adding to the overall cost of your loan.

Avoid minimum repayments on credit cards:

  • Paying off the minimum monthly balance on credit cards has several drawbacks.
  • These include high interest accumulation, prolonged debt duration, negative impact on credit score, and prolonged financial stress.
  • To mitigate these risks, it’s crucial to pay more than the minimum each month or clear the balance entirely.
How to choose the best low credit score loan for me

5. How to get low credit score loan approval that’s right for for me

When researching how to get low credit score loan approval, it’s important to carefully consider your financial needs, goals, and current credit situation. Always start by assessing your borrowing needs and determining how much you need to borrow and for what purpose.

If you would like to apply for a low credit score loan with Australian Lending Centre then you can apply in less than 5 minutes here. Applying is no obligation and does not affect your credit score.

Some final considerations when taking out a loan:

  • When selecting a loan amount, leave some extra breathing room to accommodate emergencies and extra spending and avoid taking out additional loans.
  • Make sure you have a clear plan for using the loan and that you can manage the repayments to avoid any serious trouble down the track.
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Bad Credit Loans Home Loans

The Budget Friendly Guide to Moving House Using A Bad Credit Loan

moving house bad credit loan||bad credit home loans
moving house bad credit loan||

Stay on schedule, use your moving house bad credit loan wisely, without last minute headaches, using the tips below.

Visit the new house to check for maintenance issues

When checking up on your new house for the first time, you need to check if there are things that might need repairs, or even just the slightest bit of improvement. Electricity and water should be available in your new home. Cable and internet should also be installed.

There may be some flaws that you previously overlooked in the new house, so check them properly, and don’t spare a corner from being evaluated. If you want to change up things inside your kitchen, do as you please.

Make sure that it’s more practical than it is luxurious; the same goes for the living room, bathroom, and bedroom repairs. Moving is already costly, but adding up to the expenses may cause you major financial problems, you could always make the expensive renovations once you’ve already settled in.

Assess the accessibility of your new house to the market, school, and public areas

When moving to a new house, getting used to the new surroundings may may involve adapting to a new routine. For instance, in your old home, the grocery store may have been 500 metres away, however, due to your location change; the supermarket might be closer to you now.

You might encounter difficulties when it comes to your childrens’ school (if you have children). Choosing a new school that is near your house will be beneficial to you for a number of reasons. You won’t be spend as much on fuel if you drive the kids to and from school. Maybe a closer school could mean the kids can walk to school instead.

Consider your public transport options

Accessibility to quality public transport can be one of the benefits of moving house. The bus stop that was two blocks away before,  could now be a five minute walk from your doorstep. Things might be easier for you if you choose the right home in the right location.

Hire a reliable moving company:

You may need to use a removalist company to make the most of your moving house bad credit loan.  Here are some tips to do it right:

  • Ask around for recommendations. Finding the right company to help you when moving can be quite hard. Consider word-of-mouth suggestions when looking for one. Despite their suggestions and the advice that they have given you, you yourself should make sure that the movers are of a high standard and that the costs are accurate and affordable with no hidden extras.
  • Make a list of the items to be moved. Make sure that you are clear with the service company. Create a list of the right arrangements in advance, to ensure both parties are aware of exactly what needs to be moved.

Be financially ready when you move house

Being financially ready should be number one on your priority list. Moving can be very costly and you’ll need a substantial amount of money to pay for everything. You might want to consider a moving house bad credit loan if you are short of cash. Make sure that you are offered the best available interest rate and fees.

If you want to learn more about our bad credit loans contact Australian Lending Centre today! We compassionately take you through the application process and discuss the terms and conditions of affordable, low-interest loans to help you over the difficult period of moving.

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Debt Consolidation Financial Fitness

When your credit file is filled with unpaid defaults

unpaid defaults can be fixed

In this article, we discuss ways to repair your credit rating through removing unpaid defaults. Are you experiencing financial hardship? Is this leading to unpaid defaults? You are not alone.

Identify the reasons why you have unpaid defaults

Understand that life happens and sometimes, you have to deal with some financial setbacks. Loss of employment, illness and relationship breakdowns may make repayments difficult. On other instances, it could be as simple as poor bookkeeping practices, not keeping your receipts, moving to another address or data entry issue son the part of your credit provider. But, whatever the reasons are, don’t let it deter you from pushing for a stellar credit rating.

Remember that creditors report that you’re on default when you are 60 days late with your monthly payment. It will serve as a warning to potential creditors that you have defaulted on your obligations and that you could do it all over again with another lender. Understand that paying off the unpaid defaults does not necessarily mean that you can erase those entries from your credit file. They will stay there for years. But, if you don’t pay them off, it could be worst.

Clean up your credit file

The best way to do this is to simply update your payments. If you have multiple credit card debts, and other consumer debts—you may think about debt consolidation. You can get a new loan to pay off all your debts. By doing this, you can reduce your monthly payments, possibly reduce the overall cost of the loan and simplify your payment. It could help you build up your credit again, not only by reducing your debts but by making it easier for you to pay on time.

By fixing your impaired credit file it would not only become easy to obtain finance but cleaning up your credit file can also give you a wider range of lending options. Remember that lenders approve clients based on their borrowing capacity. This does not only refer to their ability to repay the debts but on their credit score as well. You may also qualify for low-cost loans which may not be possible if you have a poor credit score unless you opt for specialized lenders who provide affordable loan products for bad credit borrowers.  Of course, the interest you pay on a loan would dramatically decrease as well.

Request a copy of your credit file

You can request a free copy of your credit file from the major credit bureaus in the country. Check them for errors, and if you see inconsistencies or inaccuracies. Sometimes unpaid defaults on your file are a consequence of an error made out of your control. You can file a dispute at the credit agency involved. Or, you may also file a complaint with your credit providers and ask them to update the report.  Sometimes, there are unjust listings or mistakes due to human error. So, make it a habit to ask for a copy of your credit file each year so you can easily contact the creditor concerned and talk over the issues with them. While it is possible to directly file a dispute with the reporting agency, they will not remove the negative entry without the approval of the creditor, or at least a valid proof that the entry is erroneous or inaccurate. There are also credit repair specialists that remove defaults on your credit file.

Consolidate your loans

You can apply for a second mortgage to consolidate all your high-interest loans into a single easy-to pay loan. By rolling all your debts into one—you could enjoy the benefit of saving money on unpaid interests and late fees. IT is also a lot easier to remember because you only have one due date to recall each month.

If you’re still unsure whether you could make timely payments because of your busy schedule—you can automate payments to ensure that you can pay on time. This will not only clear up your old debts and help you start with a clean slate—but debt consolidation can also help you rebuild your credit score fast your potential lenders would also see the improvement on your borrowing habits and you are most likely to qualify for low-interest and bigger loans in the near future.

Develop good financial habits to prevent unpaid defaults

After you understand the importance of paying off your debts, it may be time to look for the best financial product when you need them. Look for specialised lenders that offer accessible and affordable loans when you are finding some difficulty in managing personal finances because of cash flow shortage due to emergency situations. Afterwards, make it a habit to check on your budget and make some adjustments in order to save more and spend less son a day to day basis.

By sticking to your budget, you can stretch out your dollars and avoid debts. Budgeting is important not only for the low-income earners but to high-income earners as well. It is important to make the most of your incoming savings so you have some money to tap into when emergency situations like car repairs, urgent home renovation hospitalisation arise. By doing so, you can avoid being chased down by debt collectors for your unpaid defaults and you don’t have to rely so much on another loan to bail you out.

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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?

bad credit home loan||bad credit home loans||bad credit home loan

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!

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Personal Loans

The Best Bad Credit Loans – Personal Loans Vs Payday Loans

bad credit personal loan||bad credit personal loans||personal loan

Personal loans vs Payday Loans – which are the best when you have poor credit? Find out the best option when you’re in need of cash. This article is the ultimate personal loans vs payday loans standoff.

What Are Payday Loans?

You have heard of post-dated check loans, cash advance loans and payday loans. They all mean the same. You apply for a loan secured by your bank account debit authorisation or check and receive the money into your bank account. It is appealing to borrowers with poor credit because lenders don’t check your credit rating in determining the amount that you can borrow. However, it measures your ability to borrow based on specific criteria which may include your income, assets and other personal circumstances.

However, a payday loan has its own disadvantages.

Why Are Payday loans are costly?

Unlike personal loans with a minimal interest rate in defined periods, the payday loan fees may range from 15% annual percentage rate to almost 400%.

If you needed money and you decided to borrow $300, you may have to pay a finance fee of $40 to get it. Your total loan is $340, but you will only receive $300. If the loan period is 14 days, you will have to pay $340 when the period ends. But, if you missed your payment, you have to pay additional fees.

Here’s another example. On January 1, Joe took out a $100 with $20 interest loan for 30 days. He failed to pay at the end of the period but decided to pay after another 30 days. This time, he has to pay the original loan of $120 ($100 plus $20 interest) plus $24 interest of the original loan.

But, why do many Australians take out payday loans? Despite the fact that Personal loans for poor credit, not payday loans are affordable loan options, many Australians still use payday loans because of lack of access to credit cards. Some borrowers have no credit and others have credit problems. With strict banking regulations, it is almost impossible for someone with zero credit history and a low credit rating to obtain financing. That’s why many people use payday loans for poor credit.

Payday Loan Debt Multiplies Fast

In comparison, with a reasonable interest rate, personal loans from Australian Lending Centre are easy to repay. There are no hidden costs to be afraid of. But, this is not the case in payday loans. If you don’t like to pay up to ten times the payday loan amount, you have two options–pay your payday loan as soon as possible, or don’t get one.

Payday loans can easily quadruple even if you didn’t mean to. If you cannot repay a payday loan as soon as you can, there is a big chance that you will get into trouble with these types of loans. The lenders will charge you expensive additional fees for not repaying the loans at the end of the period.

It is easy to get, but difficult to pay

When you leave your debt unpaid for several periods, you may wake up one day owing more than you are able to repay. Not only is it an unpleasant experience, but it is also damaging to your credit as well.

Some payday lenders also have terrible debt collection policies like harassment, threats of litigation and other forms of provocation.

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Bad Credit Loans Tips

Tips To Save More Money When You Apply For Loans With Bad Credit

Australian Lending Centre

It’s not easy to solve cash problems when you have bad credit. But, there are simple tricks you can use to ensure that you can successfully obtain loans even with a poor credit rating. Here, we discuss tips to save money with bad credit loans!

There are bad credit loans out there to help you out during unexpected life events, fund a brilliant business venture, pay bills or even consolidate your debt. In fact, you can use bad credit personal loans for almost anything. But, it is equally important to check into the type of loan you will get and how you will use it.

While there’s no problem in enjoying life’s little luxuries from time to time, it will be wise to wait up till your finances get better before you take out loans for frivolous expenses.

Here are some important tips when applying for loans with bad credit:

Understand your options.

Talk to your local bank and enquire about possible borrowing options available. Try to negotiate and see if you can get the most favorable rates that apply to your situation. But, before you sign up for another loan, make sure that you have checked the availability of loan offers for borrowers with bad credit from other lending institutions.

Read the fine print and compare various loan packages before applying for a loan. Look into the underwriting guidelines. You can fill out an enquiry at Australian Lending Centre to check your options, approval level and loan terms. You have no obligation to accept the offer. In fact, it is simply a guide to help you make a quick comparison of your preferences.

Ask for clarifications.

Are you interested in a loan product? Contact the lender and ask about the terms of the loan, particularly the interest rates, late fees, and relevant details about the total cost of the loan. Don’t forget to clarify important details such as loan eligibility, payment schedules, documents and other important matters to keep you on the safe side. This is one of the more useful tips to save money with bad credit loans because you can specify exactly what you need in a loan.

A loan is a contract and you may end up damaging your credit score, losing your assets, and getting a court day if you mess up. So, if you’re not sure you understood all the terms of the loan, ask questions.

Don’t rush.

Sure, you may need the money now, but taking at least a few hours to understand the protocol of getting the money you need, the specifics of the loan and the reasons why you’re getting it can save you a lot of money. Tips to save money with bad credit loans

A loan is an amount of money that you have to repay, whether you have fully utilized it to your advantage or not. So, it is practical to set up a budget and see how much you can practically afford to pay on a monthly basis. Then, get a loan agreement that would perfectly match your capacity to pay. Getting a loan that would cost you more money in monthly repayment than what you can normally afford may eventually lead to default.

Get a loan which does not prompt you to go over your budget and one that you can afford to pay as fast as possible.

Contact the Australian Lending Centre to learn more tips when you apply for loans with bad credit.

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Debt Consolidation

Can you consolidate debt with Bad Credit

debt consolidation bad credit loans

Unfortunately, many Australians overwhelmed by their debts can miss some of their monthly payments. This can lead to your credit score taking a big hit.

If you have multiple debts and a bad credit history then you could lose financial control before you know it. Fortunately,  you can consolidate debt with bad credit. This solution gives you the opportunity to save thousands and build up your credit score!

Traditional banks are highly unlikely to take a risk on granting finance to somebody with a poor credit history. This is where the Australian Lending Centre could help. Through our debt consolidation bad credit loans, we can help you get back in control of your finances.

How Does a Consolidation Loan With Bad Credit Work?

Essentially, these loans allow people with bad credit scores to consolidate their debts into one easy-to-manage loan. This is possible with a low credit score because your credit check is not checked.

This means that instead of paying multiple credit repayments each month, an individual with bad credit can simply pay one monthly repayment, giving them more financial control and a heightened ability to pay back their debts. Even better, with debt consolidation bad credit loans you could secure a lower interest rate than the combined rates of your current debts, which could save you hundreds of dollars each month.

Debt Consolidation Bad Credit Loans with Low Interest Rates

If you have a bad credit rating, debt consolidation bad credit loans could help you pay off your debts at a lower interest rate. This could not only save you money but also reduce the risk of defaulting on your payments.

Let’s look at an example. If you are paying off multiple debts, the chances are that a few of those debts will be from credit cards. Credit cards have higher interest rates than most other loans, and these rates become even higher when you miss a payment. In addition to this, each of your creditors may charge a fee for missing a payment or for other reasons. With all of these extra payments and high-interest rates, you may find yourself paying far more than you need to be.

The solution? Debt consolidation bad credit loans can help you clear high-interest debts such as credit cards and enable you to take control of your finance. After clearing your debts with your debt consolidation bad credit loan, you can repay your new loan at a lower interest rate.

Rebuilding your Credit Rating Through Debt Consolidation

Clearing multiple debts with a bad credit debt consolidation loan could help improve your credit rating, as you will have a lower risk of multiple defaults and have less unpaid debts to your name. Even better, successfully paying off your bad credit debt consolidation loan could help rebuild your credit rating, giving you more financial freedom in the future.

You don’t need to struggle with multiple debts. Call Australian Lending Centre today on 300 138 188 or fill out our Express Enquiry form, and find out your financial options.

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Financial Planning

Making Sense of Australia’s Comprehensive Credit Reporting

clean credit

Understanding Bad Credit with Australia’s new Comprehensive Credit Reporting

Australia’s new comprehensive credit reporting system came into effect from March 12 this year and has changed the manner in which some lenders look at risks when accepting new clients.

Continue reading “Making Sense of Australia’s Comprehensive Credit Reporting”