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Personal Loans Bad Credit Loans No Credit Check Loans

Are Personal Loans Available For Bad Credit Borrowers?

A personal loan is a secured or an unsecured loan offered to you by a lender on the basis of your credit score and capacity to repay the loan. If you don’t have the usual qualifiers—meaning, you have a poor credit score and unsteady earnings, you can still get approval for the loan and enjoy a low-interest rate if you know how.

Here are things to look for in a personal loan provider:

Specialised lending agencies offering bad credit loans in Australia 

We are in a world of financial opportunities, and if you need money right now—you must be able to access it fast before you lose the opportunity. If a lender can give you as much as $20,000 or more via an unsecured personal loan without you having to worry about your credit score and income. Why not give it a try?

The challenge lies in the application process. Those with low credit ratings who apply for loans from banks and traditional lenders are typically denied. With banks tightening their lending, it has become increasingly difficult for someone with a good credit history to secure a loan. If you have bad credit, it is almost impossible. Strangely enough, if you have a bad credit history, you can get approved for a $20,000 personal loan within a day. That is if you seek out bad credit lenders. Alternative lenders are more than willing to lend you a hand so that you can get yourself back on track. If you are therefore looking for a personal loan with bad credit consider a specialised lending agency.

It offers a low-interest rate

Even those with poor credit can get personal loans with low-interest rates. If you have been paying more than a 20% APR for high-interest cards, why not opt for loans with lower APRs? It will not only give you an opportunity to pay for your urgent needs, but you can also use the money to pay off high-interest debt. In the long run, this will allow you to save more money.

It provides flexible and multipurpose loan

Make sure that you can use the cash for making the purchases you want to make. This may include a car, house renovations, equipment for your business, or even to fund your retirement. Borrowers with very high debts may also want to use this type of loan to get started with their debt repayment plan.

You can use the money to consolidate debt

Do you have credit cards, personal loans and several smaller debts with high interests? Are you struggling to manage your repayments? Consolidating your debts through a personal loan may be a great way of simplifying your debt. Debt consolidation through a personal loan will allow you to better manage your loan repayments. You will only have one repayment coming out of your account at the end of each month.

Small debts can be consolidated by using personal loans. Calculate your total debt. Apply for a larger loan that would cover several smaller debts with high interest to save money on interest. By combining several loans in one place, it may be easier to handle one payment.  Don’t forget you can always opt to extend or reduce the loan period.

You can access a low-interest line of credit to stabilise your cash flow using your personal loans

Are you a bad credit borrower? A low-interest line of credit can help boost your credit score. Look for lenders that allow you to access loan products that will help you boost your credit rating. Your credit score is calculated depending on multiple factors. These include;  your credit history, outstanding balance, age of credit, different types of accounts and utilisation rate. If you access instalment loans, pay on time and use it to lessen the balance of your existing debts, you can boost your score in no time.

There are many reasons why a person gets a bad credit score. No matter how careful you are with your finances, sometimes—life just happens. There are unexpected expenses that may prompt you to get new debt. Some people lose their jobs, or experience setbacks in their business, leading to a decrease in income. Divorce, changes in living arrangements and acts of nature could also hold you back from paying your own debts. Of course, it could simply be due to a lack of discipline or poor spending habits.

Where are you right now financially? A personal loan can get you where you want to be, support your plans and put you back on your feet. Get in contact with Australian Lending Centre today and discuss how you can get access to a personal loan today.

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Bad Credit Loans No Credit Check Loans Short Term Loans

Bad Credit Score? Improve Your Chances of Getting A Loan With Bad Credit

Is your bad credit score making it difficult for you to get a loan? Poor credit history is more common than you might think. Borrowing options can be limited and the cost of the loan can incur greater costs to you. But…it’s important to remember that a poor credit score is not the end of the line when searching for loans. The first thing you can do is search for bad credit loans. Otherwise, read on as we uncover some tips. There are innovative ways to increase your chances of getting a loan with bad credit.

Consider using security or collateral

Assets, such as a boat, car, land or even a house may be advantageous when applying for your loan as these offer the lender some reassurance. The amount of the loan will depend upon the equity or value you have in assets. You do need to consider that if you default on your payments, this may result in the repossession of your property or assets to recover the cost of the loan.

Look beyond the obvious loan providers

Unlike most lenders, credit unions are more inclined to look beyond the credit score, give you a fresh start and lend money. Their focus is on the person as an individual, not just the numbers. Do bear in mind however that they will not invest in a borrower who can’t service the loan. A credit union is still looking to make a profit, despite being compassionate in lending rules. Credit unions still have set criteria to approve a bad credit loan.

Show consistent savings habits

You don’t need to have a massive bank balance to show you are stable financially and on the right track to rebuilding or improving your credit history. Present your savings account, showing a solid pattern of savings. Showing that you will be organised and methodical moving forward with your loan payments is vital. Lenders are reassured when you have funds to draw from should you find yourself temporarily short of income or cash flow. If lenders can see healthy saving habits then your chances of getting a loan with bad credit will be higher.

Have someone with good credit to co-sign the agreement

Having a guarantor is one of the simplest ways to immediately increase your chances of obtaining loan approval. This person needs to have a positive credit score and a consistent income. The most common people to co-sign loan agreements are family members, relatives and very close friends. These people need to understand the risks of co-signing a loan and trust you will not default. If you do, this may affect their finances and future credit score. If you default on the loan this person will be in the unfortunate position of having to pay the loan amount. You need to be 100% committed to paying the loan and have the income to service the loan. You won’t want to compromise the relationship.

Do what you can to fix your credit score

Firstly check out your credit to ensure there are no errors that are affecting your score. If there are, you may be able to fix your credit. You may find older bills that have since been settled and can be removed. Other factors can include delinquencies or loans that you may not have incurred. Credit rating agencies can make mistakes but are always open to correcting these errors.

For more answers to your financial questions, check out our FAQ page. Or enquire now, through our online form.

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Bad Credit Loans Debt Management Financial Fitness No Credit Check Loans

How Do I 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

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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Bad Credit Loans Financial Fitness

Top Downsides of Loans for People with Bad Credit

Bad credit is something that almost every Aussie struggles with at some point; the only difference is the magnitude. If you’re in a position where your bad credit reaches the lowest of points, then you may be affected more than you can imagine. While bad credit loans provide opportunity for those who are told no by banks, there are downsides of bad credit loans.

There are several lenders out there offering loans for people with bad credit. Every one of them seems like a gift sent from above if you are looking to borrow money. Keep in mind, that if you have bad credit, you will not reap the same benefits as your friend with clean credit. The reasoning behind that is simple: the bank trusts them because have always paid their loans on time. You, on the other hand, will be presented as a red flag.

Here are the top downsides of loans for people with bad credit

1. You’ll pay more in interest

When the bank looks at your application, all they will see is that red flag saying “risk” to them. Most of the time, you will end up paying more in interest than you would for the actual loan. If you take out a loan as a person with bad credit, you’ll pay a lot of money for a longer time span. Where the regular loan would have been done in one year, the bad credit one may take up to three years or more. Worse off, that’s money you won’t even be allowed to use.

2. It may affect your credit score

Here’s a thought: if you borrow money, it means that you reached a point where you are so tight on cash that you can’t go forward without borrowing. Keep in mind that this money needs to be paid back in full, and then some – so imagine what would happen if you can’t pay that money when you are required to.

When it comes to loans for people with bad credit, keeping up with the monthly payments is a great challenge, so you’re bound to miss a payment or two at some point – which will show on your credit score. If that score wasn’t bad enough, imagine what would happen after you fail to repay the loan.

3. You’ll have more fees to cover

Traditional loans have their own fees. They do not compare with the fees that you’ll have to handle if you are going for loans for people with bad credit. These fees may include:

  • Origination fee: These fees are required to process your loan application, and also open the loan if approved.
  • Late payment fee: Unfortunately if you are one minute passed your deadline, you will be charged a fee for being late. The more you put it off, the more that fee will grow.
  • Check use fee: Some bad credit loans will charge you an extra fee if you decide to use check withdrawal.

Bad credit loans sound dreamy and all that – until you have to pull out your wallet and pay up some fees that you normally wouldn’t be required to.

4. You’ll need collateral

You will need to bring out some collateral when it comes to loans for people with bad credit. They will need the certainty that you will pay the loan. That can only happen if you feel like your house, car or your other belongings are in danger of being confiscated by the bank.

Not all lenders ask for collateral; however, keep in mind that those who do not ask will require that you pay even more in interest.

Loans for people with bad credit can be very useful to get back on track, as long as you make peace with the downsides. At Australian Lending Centre, we are there to help you in a pinch and offer you a convenient repayment plan with competitive rates – or simply give you some advice. Contact us for a free consultation or a free assessment for a loan catered for you.

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Bad Credit Loans Business Loans Debt Consolidation Debt Management

Should I Get Cash Now With Bad Credit?

Over the years of advising young entrepreneurs in debt, I realised that there is one thing that is stopping them from achieving their financial goals – debt mismanagement. A lot of people think that for you to build your business you need to get more debts, despite having bad credit. Others also believe that getting into debt puts their business at risk of going bankrupt. So, how would you know if it is wise to get cash now with bad credit or not?

Here is a fact. Debt is simply a tool to build your business or to ruin it. More debts won’t make you bankrupt. Not knowing how to handle your debts would.

The scary truth of having bad credit is that it reveals your inability to handle your financial obligations. If you are having problems with debt management, more debts will only amplify your problem. But, does it mean that we shouldn’t get a loan now with bad credit? The answer is a very loud–NO. Getting a cash loan can be your only way out – but you have to learn first on how to manage your debt wisely.

Basics of debt management

Depending on where you are currently in debt, here are some tips to leverage cash with a bad credit loan.

Acknowledge your debt problem

It is impossible to create a solution for a nonexistent problem. If you don’t see a bad credit score as an issue, then you may not be so adept in finding ways to address it.

Trace the causes of your bad credit score

Request for a copy of your credit score to check which of your existing debts were left unpaid, delinquent and if there are debts which do not belong to you.

Create a budget

Before you decide on the loan amount, calculate the actual amount of money you need not only to settle your outstanding debts but to meet your existing needs as well. If you will use all of your money to pay your bills without allotting something for a new source of income-how can you pay the loan back? Downsizing and making other lifestyle changes may not be enough. It is also important to increase your cash flow either through creating a passive income or investing in a business.

How will the cash loan impact your current financial state? Do you have a stable stream of income or is it at high risk as well? Understanding the potential risks facing your wallet on a short and long-term basis is important in determining the amount of loan you need to improve your finances. Once you’ve mapped out the threats to your financial stability, that’s the time you can create a concrete debt management plan.

Create self-satisfying goals

Money is not a very attractive goal. But, it is surely a powerful and persuasive tool to reach your goals in life. If you will only work to pay down debts, you may not be too eager to invest and improve your way to get there. However, if you get cash now with bad credit not only to meet your needs but to reward yourself with a financially stable life, you’ll surely smile on your way to financial freedom.

Learn more about cash now with bad credit by keeping in touch with the friendly staff at Australian Lending Centre.

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Mortgage

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

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

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

Questions to Ask Before Applying For Bad Credit Loans

Many people will apply for bad credit loans over the course of their life. Due to salary changes, a bad investment or personal problems, a bad credit score can prevent you from achieving your dreams. A bankruptcy or even failing to make regular payments for your loan can have repercussions and thus put you in an uncomfortable position.

The silver lining is that there are still a few options for you when you are in need of some extra cash; one of these options is represented by bad credit loans. These are a great option when you need funds but they come with drawbacks. We weigh up the top questions to consider before applying for Bad Credit Loans.

Do I really need the loan?

Sometimes, a loan can make your life easier, but it will also put you in debt for the long run. Start by analysing your situation. Do you need the money for an urgent situation? Can you wait a few more months and save it based on your income? The answers to these questions will let you know if you need the loan or not.

Am I eligible for the loan?

One of the questions to consider before applying for bad credit loans is are you eligible? Bad credit loans come with some requirements, as you might expect. Start by finding out what is your credit score and consult with a lender to see if your loan has chances of being approved or not. Keep in mind that a dismissed application will only lower your credit score.

What do bad credit loans imply?

Unlike a standard loan, a bad credit loan will help you get back on the right track with your finances, but it comes with higher interest rates, fees, and costs. Still, you can find the best bad credit loans if you’ll take the time to search for the right solution in your current credit score condition.

Who can apply for bad credit loans?

Well, the good news is that basically anybody can apply for this type of loan. Whether you are self-employed, have been through a bankruptcy or have unpaid defaults, you can still qualify. The difference is in the amount of money you can get.

Can I repay the loan?

Take into consideration that you’ve come to this solution due to not having the option of getting a standard loan. This means that your finances aren’t in pristine condition. Before taking more debt, analyse your situation and see if your income allows you to make regular payments. If you’ll start skipping payments, you may find yourself in bigger trouble than you are now.

Can I apply anywhere for a bad credit loan?

Start by getting familiar with your credit history and then, you should consult with a specialist lender in bad credit loans. By applying to any bank that comes your way, you risk having your loan refused and then having more difficulties in getting your loan approved by a different lender.

Bad credit loans will get you out of financial difficulties, but they will also have bigger interest rates, so consider your situation well and decide if it’s worth taking another loan.

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Bad Credit Loans

Should You Apply for Bad Credit Loans to Improve Your Credit Score?

There is no such thing as a quick fix for bad credit scores, but you can apply for bad credit loans to improve your credit score. Consistent repayments can be your best option in rebuilding your credit history and paying for your current needs.

A credit score of 509 or less (VedaScores) means you cannot have the best interest rates on loans, mortgages and refinancing because you’re a high-risk borrower. It sounds unfair because even responsible borrowers with only have one credit card and pay the balance in full and on time, can have a low credit score. It happens when you have a high utilization or a percentage of your credit limit being used. A good example is when your credit limit is $1000 and your statement balance is $200. In such a case, your utilization would be 20% and it would alert the banks that you cannot control your spending.

Improving your credit score takes time because your score is a reflection of the pattern of your credit payment. However, the fact that it puts more emphasis on your recent financial information is encouraging.

Obtaining bad credit loans can be a wise move to help you get started on the following steps to a better credit score, and hopefully, to financial freedom:

1. Pay off outstanding debts.

Categorize them into priority and non-priority debts. Use a portion of your bad credit personal loans to pay off your high-priority debt. It’s either you target high-interest unsecured debts before they get out of control, or you make the minimum payments on secured debts to save your assets tied to the debts.

Before you pick bill payments, make sure that you obtain your credit report first. It will serve as the basis of your next move. Aside from your basic information, your credit report can show you where to get started in your debt-payoff. It shows your open and closed accounts, complete credit accounts payment history, recent applications for loans and credit, and collection accounts for unpaid debts sent to collection agencies.

2. Cover your basic expenses

Don’t be too overwhelmed by your debts. If you took out a loan because your income is not enough to pay for everything, maybe it’s time to reconsider what is essential and what is not.

You can do this by prioritizing your expenses. Create a budget by starting with the main reasons why you took out a loan. Pay it off. When there is money left, ask yourself which aspect of your finances you need it most.

3. Start over again

You may be getting bad credit loans to pay for medical and personal expenses or to pay for the outstanding balance of other loans. However, putting away enough money to help you increase your income can help you get the most from your loans so you can live comfortably and within your means.

Are you in urgent need of personal loans but banks refused you because of your poor credit history? Contact us today and our bad credit loans team will help you find the most suitable option for your financial and personal needs.

Categories
Financial Planning

Making Sense of Australia’s Comprehensive Credit Reporting

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.

Categories
Financial Planning

5 Rules to Avoid a Bad Credit Score

These days, no one could be immune to possible bad credit. Many people are incurring either a job loss or a reduced income. Some just could not control their personal finances effectively. A bad credit score has become very common especially now that many consumers find difficulty in meeting financial obligations.
No one wants to incur bad credit. That is for sure. Getting a poor credit rating is like a curse. It could mean many other problems and difficulties. Bad credit could be a passport to higher interest rates and discrimination from banks and other financial institutions. Fortunately, incurring bad credit could be avoided. Here are five rules you could observe to do so.

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Bad Credit Loans

Old Records Hurt Potential Bank Borrowers

More and more people are being denied loans due to the current credit-report system. This is bad news for Australians who have had a poor credit history or suffered bankruptcy, making it virtually impossible to secure a loan through the mainstream lending services such as banks.

Under the current credit report system, credit checks only provide lenders with the number of credit inquiries and details of overdue payments and court judgements in the past five years. Additionally they can see bankruptcy orders made in the past seven years. This comes as a severe disadvantage to those with a less than favourable financial past, to secure a loan and get back on their feet. The reports fail to give a comprehensive individual analysis, and instantly condemn their history to hinder their financial future.