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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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Debt Consolidation Bad Credit Loans Personal Loans Short Term Loans

Quick Loan Myths Everyone Should Stop Believing

If we are honest, there are a lot of quick loan myths in the loan industry which have negative perceptions. There are many misconceptions as some lenders employed unethical lending practices. As a result, a range of false or exaggerated perceptions has emerged. Still, you should know there are always two sides to every story.

1. Quick Loans Are Schemes That Rip You Off

To start with, due to the bad publicity that quick loans have received in recent years, most people have come to believe that these loan products are rip-off schemes. This one of the main quick loans myths.

Quick loans are suited for people that are in urgent need of cash but cannot access it elsewhere. Therefore, as long as you meet the loan repayment terms, everything is fine. Things are likely to get off track when you miss making repayments or you default – which applies to all types of loans.

2. Quick Loans Are Beneficial to Lenders Only

Moving on, another of the common quick loans myths is that providers of quick loans want to rip-off customers. However, considering that the lending criteria for these loans are really permissive, it makes sense for the interest rates to be as high as they are – especially since these loans usually don’t imply a credit rating check.

People with poor credit rating can seriously find these financing options life-changing. The only requirement you should meet is to have a steady income so that you can repay the loan in time. Also, since this type of loan doesn’t require collateral, the additional costs are greater than in the case of other types of financing.

3. Quick Loans Have Concealed Fees and Additional Costs

The list of popular myths regarding short-term loans continues. Many people are under the impression that payday loans come accompanied by hidden costs and fees the lender hesitates to disclose. The reason behind this assumption is that the majority of borrowers aren’t responsible enough to go through all the terms and conditions included in the signing papers.

It is against the law to conceal fees and additional costs – that is to say, all lenders based in Australia must be 100 percent transparent and upfront concerning the terms and conditions of the loan. Therefore, in order to avoid such scenarios, borrowers should take the time to scrutinise all the information about the loan product.

4. Quick Loans Are for People with Serious Financial Problems

Furthermore, there are also quick loan myths that short-term loans are provided for poor people with unstable financial situations. As mentioned, quick loans do not reflect financial stress, they simply offer people with an immediate alternative to cash.

Additionally, all types of people deal with financial difficulty. Therefore, it would be wrong to assume that whoever gets a quick loan is part of a specific segment of the population. As a matter of fact, when you need money for an emergency, it simply means that you’re going through something and there’s no other way in which you can get the money you need.

5. Payday Lenders Use Threatening Strategies to Collect Payments

While it’s true, to some extent, that some payday lenders use aggressive marketing techniques to promote their loan products, this doesn’t mean that they use threats to collect the payments.

Truthfully, reputable lenders, such as Australian Lending Centre are transparent and upfront regarding the terms of the financing. At the same time, reliable lenders never use these tactics. This merely means that you should do your research before picking out a lender out of the sea of lenders.

6. Taking Out Quick Loans Means That You’re Irresponsible

There is a common misconception that those who apply for a quick loan are financially irresponsible. Nevertheless, as long as you consider both the pros and cons of this decision, this doesn’t apply. It is implied that each financial decision has a range of pros and cons. It makes total sense for quick loans to have both pros and cons.

Evidently, the pros are that you get quick access to cash when you need it, without having to worry about the application process, adding collateral or a co-signer. When you need cash ASAP you don’t have time for these.

On the other side, the cons are that the interest rates are high and that, if you default on the loan, you might end up in financial hot water. Still, this applies for all types of financing – meaning that, regardless of the loan product you want to apply for, you should be 100 percent sure that your financial situation allows you to cope with making repayments.

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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

Second Mortgage Loans For People With Bad Credit

Not sure whether second mortgage loans are a good idea with bad credit? Here are a few things to keep in mind before conditioning your mind into making new monthly mortgage payments again.

Some people don’t like second mortgages…

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

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.

Some Final Considerations Before Taking Out Second Mortgage Loans With Bad Credit

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’re also exposing 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 consultants 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 Refinance and Refinancing

Is Bad Credit Refinance Home Loan Right For Me?

Learn the criteria for determining whether to refinance or not.

The refinancing process can be daunting and confusing. It can also make or break your finances. So, before you get caught up in a pile of debt that you have to pay for a very long time, take time to study the costs associated with bad credit refinance home loan.

Here are some factors to consider when deciding to refinance a bad credit refinance home loan:

Lowered interest rate which is computed over the lifetime of the loan.

First, it is wise to reconsider refinancing if it changes the type of interest rate.  Let’s say, Johnny originally took out an adjustable-rate mortgage with a 4-year fixed period. That means, when the 3-year period expires, the interest may fluctuate from time to time. If you don’t want to worry about the rates going up or down, it may be time to consider refinancing your home. Second, the new interest rate is at least 1% less than your current rate.

Supposing you currently have a 30-year fixed-rate mortgage loan for $400,000 with a 6.5% fixed interest rate. The new rates are at 5.5% interest. This could definitely reduce your monthly payment by over a hundred dollars and more than a thousand dollars in a year.

Longer loan term or period of amortization.

Let’s say you originally got into a 15-year home loan. To lower your monthly payment, you can switch to a 30-year mortgage through refinancing.

The overall savings is worth the transfer costs.

Loan redemption charges, admin fees and other costs of transfer are examples of once off transfer costs.

For example, the closing cost amounts to $4000 and your mortgage has more than 40 months on its term. If you can lower your interest rate by 1% p.a. and save roughly $100 a month in installment payments, you can save as much as $12,000 in the next 10 years.

If you divide $4,000 by $100, the break-even point, or the point at which you recover the $4,000 is 40 months (4000/100).  In case you leave your home after two years that savings come to $2400 only. If you are not going to stay at least another 40 months in your house, then refinancing may not be a good option.

Assuming that the terms are the same, always calculate the savings and compare it to the refinancing fees before signing up your refinance application.

Is it wise to refinance my home loan?

Refinancing is all about crunching the numbers.   Calculate the savings based on the changes in interest rates, loan amortization period and refinancing costs. If you can lower the payment every month and recoup the transfer costs within a year or two, go for it. Shortening the loan term is an added bonus.

There are many advantages of refinancing your mortgage. You can lower the interest paid over the loan’s lifetime, reduce your monthly payments and the total payments over the life of your loan. But, you have to consider the fess you need to pay to obtain the loan, the principal amount and the loan term. Remember that it is still a loan and you have to repay it. If you think you have the financial capacity to pay it off for another 15 years, then shifting from a 15-year to a 30-year mortgage may not be a bad idea after all.

Contact Australian Lending Centre today to learn more about bad credit refinance home loan.

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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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News

4 Tips to Pay Car Loan With Bad Credit Faster

Here are some practical, easy tips to help you to pay your car loan with bad credit faster, and how to save money while doing so…

1. Add extra payment on your monthly instalment.

Most of the car loans have fixed monthly instalments. So, every time you make an extra payment, it should go directly to the principal. You can also set up an automatic payment with the extra amount so you could avoid missing the due dates. Afterwards, you can work on increasing the additional payments.

2. Spend your cash windfall to repay your debts

Did you suddenly receive a chunk of money? Maybe you won the lottery or received a tax refund or inheritance and you are tempted to spend on your must-haves. Hold that thought-debt must come off first. Use your cash windfall for paying off car loans faster.

3. Work on your budget

If you want to have more money to pay off your loans as quickly as you can, but increasing your income is not possible at the moment, decreasing your spending is an option. While it is a bit hard to trim your budget drastically, skipping small stuff that used to cost you a few hundred bucks a day is worth it.

For example, if you are paying a thousand dollars a year for your gym membership, why not try cheaper exercise programs with friends until you have paid off your car loan?  You may have to skip clubbing or eating out, but it’s only a short-term. Use your creativity to get cheaper alternatives to things that you used to buy.

If you love throwing big parties, why not try cost-effective celebrations that focus more on experiences instead of glamour? Even if you can only handle cost-cutting for a few months, the amount of money you can save can still help your car loan repayment.

Maybe you can keep some cost-cutting strategies you can use for life, especially the healthy and friendly alternatives.

4. Debt consolidation

It is not easy to obtain a car loan for bad credit with reasonable repayment terms. Lenders look into your credit history to check your ability to pay your monthly instalments. One of the most common financing options for people with bad credit who want to finance a car is debt consolidation.

Here is one of our best tips to pay your car loan with bad credit faster. If you want a stress-free ride, reduced interest rates on your bills and debts and an easy-to-follow debt repayment plan, debt consolidation can help you. You can also enjoy the convenience of making one payment every month.

Debt consolidation helps you become debt-free faster and you can save hundreds to thousands of dollars on penalty fees and debt charges plus accumulating interests from various debts.

Australian Lending Centre helps thousands of individuals deal with defaults, late payments and charged-off accounts that could ruin your credit rating. Their debt consolidation program helps you reduce your debt payments and save money in interests. They also have in-house loan specialists that will guide you on how you can improve your credit score.

Start with a clean slate while you get your dream ride. Getting a car loan for bad credit isn’t as hard as you think, with Australian Lending Center.

Contact ALC today!

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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.

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No Credit Check Loans

Struggling with Bad Credit? Choose No Credit Check Loans

No credit check loans are the dream solution for people who are having problems with bad credit or don’t meet the criteria for a loan. There are lenders who won’t verify your credit history to decide if you are eligible or not for a loan. If you’re worried about your financial situation and in need of an urgent fix, choose no credit check loans and keep your records and debt situation hidden!

How does a loan get approved without a credit check?

The decision is made according to your finances and earnings. They’ll take a look at your income, meaning they’ll see how much money you earn each month and also check the payments you make each month for the loans you’ve taken already.

The loan is set according to your finances and budget. Even if you get no credit check loans, you won’t be able to take a large sum of money if the lender doesn’t think you’d be able to pay off the loan.

The costs for no credit check loans

If you’re taking a loan between $2,000 and $5,000, the establishment fee can be as high as $400. Check with the lender and try to find no credit check loans that have smaller interest rates and fees, so as to manage your loan better.

What to consider when choosing an easy loan?

  • Fees

Although there are restrictions imposed on lender’s fees, they can charge you more besides the 4% interest rate. They can add up to 20% establishment fee for a loan smaller than $2,000.

These loans have much higher costs than your usual standard loan so proceed with care and think twice before applying for no credit check loans.

  • The company’s reputation

Try to check the lender’s credentials and look on their website to see if they can be easily contacted or if they make their fees and rates public. Being an online process, you have to be careful when dealing with no credit check loans.

  • Time needed

Usually, the loan could get in your bank account somewhere between 2 hours and up to a business day from the moment of the approval. The turnaround time for this loan makes it an excellent option when dealing with an urgent matter for which you need money.

  • Eligibility

Do the math before deciding to choose no credit check loans. See if you can afford living expenses or other loans you might have taken.

Avoid lenders that are willing to approve any amount of money for a loan. In case you “succeed” to take a larger loan, you won’t be able to pay it off and soon, you’ll find yourself in serious trouble.

Having a bad credit score doesn’t necessarily mean you won’t get a loan and that you have to look for no credit check loans. In both cases, the loan is approved considering the information you’ve put in your application. Make sure to calculate ahead and ensure you have the finances to pay off the loan, as well as the interest rates and fees that come with it!

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News Debt Management

Many Australians Are Turning to Debt Agreements

Debt agreements are an alternative to declaring bankruptcy. Rather than be haunted by the irreversible effects that bankruptcy can have on your credit record, entering into a debt agreement can give you a debt-free fresh start. They’re becoming the popular choice for Australians in need of debt solutions. Debt agreements are overseen by the Australian Financial Security Authority (AFSA). As a government body, it’s AFSA’s job to regulate debt agreement administrators, in order to ensure they are resolving debt at the highest standard possible. The AFSA has been finding an increasing number of Australians are turning to debt agreements to solve their debt problems.

Why So Many Australians Are Turning to Debt Agreements

Although a debt agreement is technically an act of bankruptcy as it is under the Bankruptcy Act of 1966, it is considered another option to going bankrupt. There are also many differences between the two, making one look like a much better option to thousands of Australians. A formal debt agreement will appear on your credit file for five years and can prevent you from obtaining further finance during that time.

The AFSA has reported that there were 28, 288 personal insolvency cases reported across Australia during the 2014-15 financial year. Additionally, their June report found that there was an increase of 4.3% for people who entered into Debt Agreements compared with the March quarter. That figure rose from 2,568 to 2,678. Of the Australians who entered Debt Agreements, only 7.7% of them were for business-related reasons, which suggest that the rest were personal debts like credit card debt from overspending.

The amount of Australians entering into debt agreements for personal reasons shows that as a nation, we frequently get over our heads in arrears. Whether getting into uncontrollable debt is due to living beyond our means or just poor budgeting remains to be seen. Debt agreements are for unsecured debts; unpaid credit card, telephone and utility bills. The Australian Securities & Investments Commission (ASIC) puts the nation’s credit card debt at nearly $32 billion, which works out to approximately $4,300 per cardholder. That’s quite a lot of unsecured debt. It’s no wonder people are having difficulty making repayments.

Debt agreements are for people without a former bankruptcy on their credit record, who want to pay back their creditors. Going through a practitioner who specialises in agreements, your debt is negotiated with creditors and merged into a big sum that you pay back over time. If you have a debt agreement, the interest is frozen and anyone you owe is no longer able to contact you to request payment. It takes away the multiple burdens of debt collectors sending letters and making phone calls.

If you’re in need of a solution to your financial burdens, fill out our enquiry form and find out how we can help you.

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Bad Credit Loans Business Loans

Tackling Bad Credit and Common Financial Problems in Small Business

There are lots of things that can lead to bad credit for small businesses but some things are more likely than most to cause problems for SMEs. All businesses are susceptible to cash flow problems and the trouble can be hiding in a number of places.

Preventing Bad Credit in Small Business

It might sound simple but one of the biggest issues might be payment. Have a look at those customers or clients that owe you money and focus on getting those debts collected. On the other side of the coin, have a look at how you are paying your suppliers back and check that you are maximising your window to pay them. In some cases you might be able to get an extension with no extra cost. Check your stock to make sure that you are not overloaded on merchandise. Turning over stock should be any business’ goal no matter what their size. Managing your business’ cash flow poorly might be one of the biggest causes of bad credit.

Rising costs affect everyone but it can be especially devastating to small businesses. The most obvious solution to rising costs is to shop around for better prices. Have a look at all of your expenses and talk to your suppliers about getting discounts for paying early or rebates for buying in bulk. Do not hesitate to call up your bank and ask for a review on your loans before bad credit builds up. You might be able to negotiate a better rate on your debt since interest rates have been falling lately.

Changes in taxation laws and business regulation can have dramatic impact on your business. Staying up to date through newsletters from your local business networks can keep you on top of the latest changes. The fluctuating Australian dollar can have certain effects on your profits if you export or import a product or service. Determining how a rising or falling Australian dollar would change your bottom line can give you a different perspective for the future. Interest rates have been falling lately but that will not continue forever. If you have bad credit then now might be a great time to negotiate your debt with your lenders or possibly reach out to a lender for a bad credit loan. When interest rates begin to rise you will thank yourself for planning ahead and making good financial management decisions.

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Bad Credit Loans

Loans for people with bad credit in Australia

Bad credit can happen to anybody but it should not be the last word when it comes to getting a loan. Credit card bills mounting up or even a lack of credit history can cause a person’s credit rating to drop. And if the credit rating gets low enough then it can be a hassle to get a loan for a car, a house or a quick loan to cover the bills. If you have bad credit, you might still have a way to get access to the money you need because there are loans for people with bad credit in AUSTRALIA.

Loans for people with bad credit In Australia

If you do enough research, you will find that there are loans available specifically for Australians with bad credit. It might be a loan to consolidate your debt or to pay medical bills but no matter what your situation there are solutions out there.

One can always go to family or friends for a loan or to get help co-signing a loan but this can strain those relationships. If you are reaching out to a loved one for help then make sure to do your best to ensure that you will pay back the loan by setting out the details of the loan in a contract. A boss or business associate is another source but as with all of these solutions it can end up being a disaster if they feel they won’t get the loan repaid in time.

If you are a home owner and have built up equity in your home then there is always the possibility of taking out a line of credit against the equity you have built in your home. This can be a risky way to get money since you will be risking the very home you live in.

The best solution is finding loans for people with bad credit from an official lender. Big banks will often turn down anyone who does not have a perfect credit history or enough paperwork but there are alternative lenders who offer low doc loans and loans for people with bad credit.

There are options available and with a little research, people can get a loan even with bad credit. If you need money to make ends meet or to get your mounting debts in order, then look to a lender that provides loans for people with bad credit.

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Bad Credit Loans

Bad Credit Personal Loans – Choose what’s right for you

Years of financial crisis and stressed home budgets have left a large portion of the population with bad credit history. It can be as small as a few late payments on a mobile phone bill or as large as missed mortgage payments but no matter what, bad credit hurts when it comes time to get a loan. It hurts when that family that has simply missed a few payments over the years or had a hard time making ends meet, has to find a loan to finance a much needed car loan or a loan for a big home repair. These needs never come at a good time and often hit those who are hurting the worst. The good news is that there is a way out and it does not mean casting a wide net and applying with every lender under the sun but actually focusing the search to a lender that focuses on bad credit personal loans.

The Right Choice for Bad Credit

The problem with applying to multiple lenders in a short amount of time for that loan is that when those lenders do an enquiry into your credit history, that enquiry actually negatively affects your credit score.  The act of searching for multiple lenders creates a downward spiral for your credit rating. It would be better to narrow the focus to a certain lender that specialises on bad credit personal loans. Applying with only one lender who will most likely approve that bad credit personal loan will actually help you by reducing the amount of lender enquiries into your credit rating. So less applications to lenders means less enquiries into your credit history which in turn means less negative listings.

Bad Credit Personal Loans

If you know that you have struggled with credit in the past and will possibly have a hard time getting a loan from a bank or a traditional lender then do not attempt to apply with every lender available because it will only drive down your credit rating and make it harder to get your credit rating back on track. Instead, make the decision to contact Australian Lending Centre and get a consultation on bad credit personal loans and get on the path to good credit. Australian Lending Centre offers free consultation over the phone and online which is obligation free and doesn’t affect your credit file.

Get your free consultation today and find a bad credit personal loan that’s right for you.

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Bad Credit Loans

Lock in Before Mortgage Rates Rise!

It’s time!!! If you have not locked in your fixed mortgage rate, now is the time. Economists have been predicting mortgage rates to rise in late 2015, but they are beginning to change their tune. Possibly rates will rise even sooner and that will raise the cost of variable rate loans. They now are saying it is the time to lock in a fixed rate. If you have not applied for a fixed rate mortgage because of a bad credit history, you may be surprised that a bad credit mortgage is available at a competitive rate!

Costly Variable Bad Credit Mortgage

Variable rates rising can make quite a difference in what you are paying out each year. A small increase in interest rates can raise the amount due each month quite a lot. When the rates begin to rise they will rise fast. It can be a shock to those families that have not budgeted for the inevitable rise in rates. Most Australians have held off getting a fixed rate mortgage due to the variable rates being so low.

With rates being lowered, it was a good environment to take a variable loan for a short amount of time but that will change soon. Australian consumers have been willing to take their chances and the variable rates have stayed low for a while. That is changing rapidly because of other market conditions.

Rising Mortgage Rates

The truth is with the variable mortgage rates on the rise it will affect a family’s budget and how much they have left after their mortgage payment for family necessities. Most Australians will not have to think back too far in the past to remember how high rates can get. Choosing a traditional fixed bad credit mortgage can end up saving you a lot of money over time.

Rates vs. Unemployment

Unemployment plays a big factor in the rise and fall of rates. If unemployment improves then the rates will begin to rise and rise quickly, but if the unemployment rate rises then interest rates will stay low for a while longer to stimulate employment. It is time to compare those mortgage rates and start saving now!

Lock in a Fixed Rate Bad Credit Mortgage

Locking in at a fixed rate, possibly even taking advantage of a bad credit mortgage at a competitive rate could potentially save your family a lot of money over time. Waiting may not be a smart choice and could end up causing financial stress.

We understand credit files aren’t always perfect. We try and work with your current credit and mortgage to get you a better deal. Grab your better fixed bad credit mortgage rate today! Call us on 1300 138 188 or Enquire Online Now!

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Bad Credit Loans No Credit Check Loans

No Credit Check Loans for Bad Credit

It seems too often borrowers are rejected by banks and are left with a big question mark as to where they can apply next. The next logical step is no credit check loans for bad credit. This can the light at the end of the tunnel for most 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 you are able to borrow at, 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 a low score the banks will use your credit score as a reason to reject your application for a loan. 

The Australian credit reports & repair website shows Australians how to access their credit file. As consumers check their credit score, they are finding that their scores are too low to qualify for a loan. Cooper, a young man from Queensland, found himself in such a bind and started looking for a loan option that didn’t focus on his credit score.

Cooper’s No Credit Check Loan Situation

Cooper had a limited credit history, to begin with, being a young 29 years old. Cooper had accumulated debts of $1,200 and $2,300 on each of his credit cards. He also had a car loan that held debt of $14,000, and he was receiving threatening letters from his creditors to pay off his debts. While he was able to keep up with his credit cards he was falling behind on his car payment and he needed a loan to pay it off and get his creditors off his back.

Cooper’s credit was sorely affected by his debt management and he was left with fewer options to borrow money. Cooper continued applying for loans, applying to bank after bank, with all of them responding to him that his credit score made it impossible for them to lend to him. Banks are known for their restrictive lending practices, and many Australians give up the search at banks and miss out on the online loan brokering options.

What can you use a no credit check loan for?

no credit check loans for bad credit

No credit check loans for bad credit application process can be quick and easy compared to applying for a loan with a bank, offer finance when you need it most. Most companies offering this type of specialist loan have online application forms and secure servers, so most of the process can be done in the comfort of your own home or workplace. Online lenders, like us, offer the most convenient application process. No credit check loans for bad credit can be used for almost anything you need. You might have a toothache that requires urgent dental work or a beloved family pet that needs a trip to the vet, and neither of these is ever cheap. Australians use no credit check loans to pay unexpected bills from energy providers, plumbers or car mechanics. People use no credit check loans for bad credit for other items including moving house, going on holiday, new televisions or white goods. No credit check loans give you the chance to apply when your credit history has been a little wobbly and you don’t want to make it worse with numerous enquiries.

Consider avoiding the following, so you don’t negatively affect your credit rating

Getting a true understanding of your credit rating will mean you can adopt some relatively simple tactics to avoiding negative entries. Credit providers keep a record of your borrowing activities and also assess the applications you make. By keeping your score high you’ll have more access to financial products when you need them in the future. Here are a few tips to ensure you’re doing the right things:

  • Utility suppliers matter: Always pay these bills on time.
  • 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 ultimately that goes through a lender and those payments will show up on your report.
  • Keep your eyes open for any mistakes: Check your credit report annually at a minimum Sometimes lenders don’t to keep good listings up to date.
  • All credit is good: Not having any credit at all is, perhaps surprisingly, 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.

No Credit Check Loans Australia Wide

Across Australia, people are realising they have options when it comes to who they borrow money from. Like Cooper, they have bad credit scores and still need financing.

The go-to financing option for Australians with poor credit scores is a No Credit Check Loan. No Credit Check Loans are the perfect loan option for the borrower who doesn’t want their past history scrutinised. If the banks are saying no, contact the Australian Lending Centre. We have great -rate no credit check loans with bad credit. Our lending requirements are less restrictive than banks. 

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Debt Consolidation

Debt Consolidation Bad Credit Loans

Unfortunately, many Australians who are overwhelmed by their debts can find themselves missing 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,  debt consolidation bad credit loans are a possible solution for many. Giving you the option to not only save thousands but also to build your credit score back up!

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

How do Debt Consolidation Bad Credit Loans Work?

Bad credit debt consolidation loans work in the same way as regular debt consolidation. Essentially these loans allow people with a bad credit score to consolidate their debts into one, easy to manage loan.

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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Debt Management

What is the Impact of Becoming Bankrupt?

Bankruptcy does not last forever. Usually, its protection lasts only a year. During the period, the individual’s financial affairs will be put under restriction. That means there are certain privileges that the bankrupt person may not possibly enjoy even after bankruptcy has been lifted. Discover the impact of bankruptcy here in this article.

Furthermore, being bankrupt is not a guarantee that a person will be totally free from any financial obligation. In many cases, the individual is still required to pay a certain amount to repay debts from creditors following an assessment of current inflow and outflow of income. The repayment scheme under bankruptcy may continue even after the individual is discharged from the provision.

Needless to say, bankruptcy brings about serious implications. Its impact can never be underestimated and overlooked. Aside from the embarrassment and eroded self-esteem, an individual can face the greatest setback in his financial aspect.

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Bad Credit Loans

5 Ways to Increase Your Chances of Getting Loans Approved With Bad Credit

It will inevitably be more difficult for you to obtain a loan if you are suffering from bad credit. As you explore your options, you will realise that your choices are limited. Borrowing can also get more expensive. If you are struggling to get loans approved with bad credit then you’ll be pleased to know there are bad credit loan solutions available.

These days, it can still be possible for people with poor credit to get approval for their loan applications. Here are five ways that can help you increase your chance of getting loans approved with bad credit.

The Process To Get Loans Approved With Bad Credit

1. Apply for a loan from a credit union.
While most lenders use credit scores as a basis for approving loan applications, credit unions will be more sympathetic and considerate to lend money even if you have poor credit. Such organisations derive money from individuals and other investors, not from banks. But those are still profit groups. Credit unions, no matter how compassionate, will still aim not to lose money. Those can set specific criteria to approve bad credit loans.

2. Use security or collateral.
This really can give you the upper hand when it comes to getting loans approved with bad credit. Having an asset like your home, land, car, or boat can be an advantage. You can use any of those as collateral to secure your loan. This is because if you are securing your loan against a physical asset, then lenders are more willing to take a risk. Most loan providers will be more than willing to provide you with loans and implement competitive or lower interest rates. However, the loan amount may directly depend on the equity or valuation of the collateral. Just strive harder not to fall into default as it may lead to repossession of the property.

3. Find a guarantor or co-signer.
You can instantly increase your chance of getting a loan approval even if you have poor credit if you can have a guarantor or co-signer, who has a good credit score and a constant source of income. You may ask your family members, relatives, or close friends to do the favour. Just be aware that if you will default on the loan, your co-signer will be forced to pay the loan amount on your behalf. Convince your guarantor that you have no intention to put him/her into a compromising situation.

4. Try to correct your credit report.
If you have doubt about your credit score, then did you know you can check it for free? There can be significant errors that are currently affecting your credit rating. Poor credit may be due to previous unpaid bills that had already been settled. Or your record may have included loans or delinquencies that you really did not incur. Credit rating agencies may also commit errors in reporting. Don’t worry because they are also open to correcting their own mistakes.

5. Declare or present your savings account.
There is no need to have huge savings. Even with small savings, you can possibly prove to loan providers that you are financially stable and you are on track to rebuild or improve your credit record. This can also serve as an assurance that you will have funds to repay your loan if ever you experience a shortage on your regular or fixed income.

By following these 5 simple tips, you can boost your chances of getting loans approved with bad credit. It’s a lot easier than you might think, but if you have any questions then we’ll be happy to help. You contact a specialist here.

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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Debt Management

How to Avoid a Default

It is a mortal sin for every loan borrower to fall into a default. That is because doing so would lead to bigger trouble. If you default on a loan, your loan provider may take various types of action, which might all be disadvantageous to you. First, you may face the burden of litigation. Second, you may be imposed with more penalties. Third, your collateral might be repossessed. And lastly, your credit history would surely be eroded.

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Debt Management

Bad Credit Debt

Over 1.5 million Australians have notched up black marks on their credit records because of overdue bills and debt.

In particular, hundreds of thousands of Victorians are among those risking finance knock backs for taking too long to pay utility bills or missing loan and credit card repayments. The revelation comes as financial counsellors expect to be swamped with households struggling to pay higher water and power bills this year.

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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.

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Bad Credit Loans Financial Fitness

Avoid Having A Bad Credit Rating

If you haven’t paid your bills, or if you’ve had your power cut off, your car repossessed or skipped payments, exceeded credit card limits or defaulted, you could be refused a loan or be charged a higher interest rate by most banks and lenders.

Credit files contain records of overdue payments of 60 days or more from when you have been sent a letter notifying you of the default. They also include ‘clear out’ listings – when the credit provider has unsuccessfully tried to contact you in writing and has reported you as a missing debtor.

Bad Credit Rating

Having a bad credit file can be costly in the long term. A bad credit history will usually mean that traditional lenders see you as a credit risk and therefore, it will be more difficult to obtain finance. However, the Australian Lending Centre can provide support to those seeking bad credit loans and find the most competitive interest rate with the best terms of repayment available.

Clear up any bad credit disputes

If you believe that a creditor has unfairly listed an overdue account on your credit file, you should contact them and ask for an explanation and for the incorrect information to be corrected.

Repercussions of a bad credit file

If you have defaults or marks on your credit file it can affect a lot of your financial options, such as;

  • Credit and loan applications may not be approved
  • Difficulty getting approved for an apartment
  • You may need to pay security deposits on utilities
  • Creditors and lenders may only offer you credit on a higher interest rate
  • You may struggle to get a mobile phone contract
  • Your insurance premiums may be higher
  • If you have overdue bills you may have to deal with calls from debt collectors
  • You may find it difficult to start your own business
  • Difficulty purchasing a car

If you are at a point where it has become too hard to manage your debts and make your repayments, speak to Australian Lending Centre as we may be able to assist you with debt consolidation.