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Short Term Loans Business Consolidation Loans Business Loans Self Employed Short Term Business Loans

Short Term Loans Facts You Probably Don’t Know

short term business loans for seasonal business

Short term loans are convenient and quick ways to get money in a frenzy. You don’t have to worry about a credit check because many lenders offer no credit or poor credit loans. If you have a stable income, you’re over 18 and you’re willing to pay off a loan in as short as two weeks’ time, you have a great chance of qualifying for a loan. A short term loan is also a very potent financial tool that can help you break the cycle of debt and say goodbye to high-interest credit card debts. Read our short term loans facts now and take advantage of this useful source of finance.

How does a short term loan work?

It takes only a few minutes to fill out the application form. In 15 minutes or less, you can get the result of pre-assessment. Lenders will ask basic questions with a soft enquiry such as your income and age and the amount you want to borrow. In most cases, when you apply for quick cash like 90-day loans, lenders will review the information you provided, ask for your income verification and send you a loan offer.

What loan amount should you take? 

Depending on your financial situation, a lender may offer a high loan amount. If you don’t need all of it; don’t take the full amount. Lenders often extend higher amounts of short term loan to earn more money in the form of interest. Stick to the original amount you intended to borrow—which must be limited to the amount of money you need to meet your current need so that you can easily pay it back as soon as you can.

alc simple application process

How long is the repayment period?

Short term loans can be as short as two weeks to three months, or up to 1 year. Often, borrowers pay back the money back in full within 90 days. If they receive their salary twice a month, they pay back a portion of the loan into bi-weekly payments. The lender can break it into 3 monthly payments, 6 monthly payments or more depending on your income. Australian Lending Centre offers flexible repayment terms.

What fees are included in the monthly repayments?

One of the more complicated short term loans facts concerns the fees. The repayment amount includes the interest rate and fees on top of the principal amount of the loan, divided into several payments. The repayment amount each period depends on the total cost of the loan including the amount you borrow.

It is important that you review the terms of the loan, especially the loan amounts, interests and any fees before you accept the offer. If there are any hidden fees or the interest rate is too high; consider declining the loan. It is important to enquire about the interest, and completely understand the loan agreement that you are entering before you sign.

Why do people prefer short term loans that regular loans?

Convenience is one of the top reasons why borrowers choose a short term loan over bank loans and other loan products. It has minimum documentary requirements and an easy income verification process. The review process is extremely quick. Short term loans are a convenient and easily accessible means of acquiring money fast.

Business loans typically require a business plan and extensive paperwork. With short term loans, you don’t have to show any proof or supporting paperwork as to where you are spending the money. Bad Credit Loans also offer Short Term Loans. If your credit history is bad due to a default, judgement or blackmarks you may still be eligible for a loan with no credit check. 

A short term loan is a reliable and flexible financial resource. In times of emergencies, a short term loan can prove to be your saving grace. Unlike traditional loans, you can access the money within 24 hours. Pay it off in just a few weeks or months. Short term loans don’t require collateral. If you have missed payments your assets are still safe.

How should I choose a lender?

There are multiple online lenders promising cheap interest rates, low fees and high amount of loan. But, don’t be fooled, some of them are either scams—asking for advanced payments before releasing the money, or those that charge hefty interests and fees, plus hidden costs that could probably put your deeper into debt.

Look for a credit provider with the following characteristics:

  1. It provides equal opportunity for affordable loans for people with good or bad credit. A stable lending company profits from offering quality products and reliable service, not because it squeezes money from its borrowers.
  2. The loan process is hassle-free. If you qualify, the lender would tell you right away and will make the money available in less than a week. It has a reliable screening system and credit evaluation criteria that allows it to screen creditworthy applicants as quickly as possible.
  3. It offers affordable interest rates, knowing that all borrowers—those with an excellent record or those with bad or no credit record at all must be given reasonably priced loan products to help them out in times of needs.

Now you know the short term loans facts, enquire with Australian Lending Centre to receive professional advice.

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Personal Loans

How Interest Works on Personal Loans

personal loans

In the past, most people would stay away from personal loans. Nonetheless, this has changed considering that you might get more convenient terms on a personal loan than on a credit card. In some cases, it might even help you enhance your credit score. That’s because personal loans are fixed-rate loans, whilst a credit card is conveyed as a revolving line of credit. Thereupon, from a credit score viewpoint, getting a personal loan might be more convenient. Nevertheless, it goes without saying that personal loans aren’t made equal. Each offer has a specific interest rate and fees attached to it. That’s why it is mandatory for borrowers to comprehend their features before shopping for one. We explain further below how interest works on personal loans.

Types of Personal Loans

When you’re shopping for personal loans, one of your priorities should be to assess the interest rate. Evidently, the interest rate might be convenient or the other way around. This will usually be dictated by a number of factors.

Secured Loans

First and foremost, you may choose between secured and unsecured personal loans. Now, if you wish to purchase a car or a large asset, a secured personal loan might work better for you. That’s because you may add the asset as security for the loan. In the event in which you default on the loan, then, the lender is entitled to repossess the collateral in order to sell it and use the money to recover the unpaid debt.

In this case, you might ask why someone would choose a secured loan over an unsecured loan. For one thing, secured loans are less risky for lenders. This safety net allows lenders to provide a better deal in the form of lower interest rates.

Unsecured Loans

On the flip side, if you are in need of some extra cash for an upcoming holiday, renovation, or debt consolidation, an unsecured personal loan might be a preferable choice. This type of financing doesn’t require collateral – making unsecured loans more flexible than a secured personal loan. The risk to the lender is significant and higher interest rates reflect this.

Types of Interest Rates

There are two types of interest rates – namely variable and fixed.

Variable Interest Rate Personal Loans

Variable-rate personal loans feature a rate that is likely to change during the lifespan of the loan. As a result, the amount of money you must repay on a monthly basis will fluctuate depending on the interest rate. This could be inconvenient for some borrowers, especially those that budget their finances in advance.

In plain English, if your interest rate diminishes, the monthly payment will be reduced. In the meantime, if the interest rate increases, this will increase the monthly payment as well. As a rule of thumb, variable interest rate personal loans tend to be more flexible and advantageous, providing a range of benefits and features.

Fix Interest Rate Personal Loans

Fixed-rate interest loans charge the same amount of money for the duration of the personal loan, so you don’t have to worry about interest rate fluctuations. The disadvantage to this that if the average market interest rate were to drop, there would be no benefit to you.

How Is the Interest Rate Calculated?

The type of loan you pick, as well as the type of interest rate,  will influence the amount of money you end up paying over the course of time. Still, aside from that, we’d like to briefly explain the elements that matter most when the interest rate is calculated.

How Your Credit Score Affects Interest

To start with, your credit score is the factor that matters most in the equation. Still, the exact rate you’re likely to get will depend on the lender. For one thing, how much you borrow and how often are factors that are widely considered by lenders. At the same time, your overall creditworthiness and reliability as a borrower are just as critical.

At the same time, if you decide to place collateral, you’re likely to benefit from a more convenient offer. Of course, the duration of the loan matters just as well. A loan with extensive repayment terms includes a higher risk of default; therefore, the amount of interest rate you’ll end up paying will be higher than in the case of a loan with shorter terms.

In summary

Bear in mind that the way in which lenders make a profit is by charging interest rates. On the other side, consumers want to get the best bang for their buck, and this makes sense – for both sides. A common-sense approach would be to do your part and research. After determining what lenders expect of you, try to enhance your credit rating and consider placing collateral if that can help you to get more beneficial loan terms. Get in touch with us for excellent loan offers for every budget!

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Personal Loans Car Finance

How to Get A Classic Car Loan on a Budget

classic car loan

Collecting classic cars is one of the costliest hobbies around and it is a little trick to get a classical car loan. The price tag on such a baby is sure to cause a panic attack in many people. People found ways of getting a classic car loan despite having a normal budget that in certain circumstances would destroy their dreams of being at the wheel of a vintage beast. If you’re aiming at getting a classic loan but your budget is nothing out of the ordinary, you might find this guide very handy. Let’s take a look at the steps you have to take in order to get classic car loans on a tight budget.

Classic car loan Guidelines 

Consider private lenders 

Credit unions and banks are not a good source of car loans, especially when you juggle with a couple of loans already. And even if they offer you the car loan you require, it will probably have a huge interest rate and it will be secured on your house. Private lenders, on the other hand, have a wide variety of car loans that come with affordable interest rates. What’s more, many of them are willing to tailor repayment plans for their clients.

You can find a private lender pretty easily. Just surf the Internet for a while and you’ll definitely find one. Stay away from lenders who ask for deposits or any other sort of down payment.

Hire a broker for your classic car loan

One that specialises in car financing, to be more precise; if you can’t seem to find a good deal, no matter how hard you try, such a broker can do some research and get back to you with one.

Moreover, a car broker can easily save you some funding, as well as the hassle of doing all the research on your own. Brokers collaborate with a lot of lenders. Sometimes you don’t even have to pay the broker because he works on a commission. In other words, if he gets you the dream-deal, he’ll get a certain sum of money from the lender he hooked you up with. This is how you save money by hiring a car financing broker.

Leasing

Tons of classic car enthusiasts choose to lease vehicles and then purchase them. This works perfectly for those people who can’t afford to buy a classic car with a down payment or can’t find a lender that’s willing to hand them some dough. After leasing, you can purchase that vehicle outright and you’ll know for sure how efficient the car is and whether or not it’s as worth it as you thought it would be initially. This is the best alternative to car loans you have (and the safest, to be completely honest with you).

A HELOC 

A Home Equity Line of Credit could actually provide you with enough funds to purchase the classic car you’ve been dreaming about for so long. Of course, you have to own quite a large, modern house that has a lot of equity in it. As you might know, a HELOC is a loan that’s secured on your house, which serves as collateral. If you fail to repay the loan, the lender can place a lien on it and sell it. The HELOC, therefore, should be your last resort. The Home Equity Line of Credit usually serves other purposes, but it’s totally possible to get a car with the money that comes from it.

Secured or unsecured

You’ll have to determine if you want an unsecured loan or a secured one. Under a secured one, you’ll get more money and lower interest rates. Under unsecured car loans, you’ll get a more limited amount of money and higher interest rates. But then again, an unsecured loan doesn’t pose a threat to your assets. If you fail to repay it, the worst thing the lender can do is to sue you. Keep in mind that he can get the right to place a lien on your assets even in this circumstance.

Extra caution is therefore advised. You certainly don’t want to be living in a Cadillac, as cosy as it might be. Think twice or even thrice about this issue and make a decision you won’t live to regret after a while.

Concluding Remarks 

Classic car loans are a great way of finding the car you want to get but can’t afford to purchase outright. Australian Lending Centre can provide some really valuable advice when it comes to taking advantageous car loans, as well as the financial products themselves. Make an enquiry on the website and you’ll most definitely find a car loan that suits all your needs and comes with an affordable interest rate and a good repayment plan. We hope you’ll get to be at the wheel of that shiny, vintage car you’ve been dreaming about for years on end.

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Financial Planning

How To Create A Retirement Spending Plan

retirement spending plan

Learn how debtor finance can help you find retirement money and build its sources. A strong retirement spending plan can help you to enjoy the life you have worked so hard to build.

If you want to create a retirement spending plan, make sure that your expenses are lower than your income. But, if you have troubles in making ends meet, how will you do it? Good thing debtor refinance can help.

Retirement is something that you buy, that’s a fact, whether you agree with it or not. It’s a plan on how you plan to spend your retirement income. But how do you intend to spend money that does not exist?

Here are simple yet effective tricks to create a retirement spending plan when you have limited resources:

Add up your income

Everything that adds up to your wealth is considered an asset, including consistent income, but not those earnings that are not definite. For example, while you can expect tips as a waiter on a daily basis, you cannot count on them so instead of writing down the total tips you received in a month, just get the average tips. Here are common sources of income that you can include in the list:

  • average tips
  • alimony payments
  • bonuses
  • investment income
  • wages

Track down your expenses

Okay, you probably heard about budgeting a lot, and maybe you’re already fed up with the tips that budgeting is crucial to retirement savings. But, it’s a hard reality that we can’t do anything about.Include everything you spend for. When you add up monthly expenses make sure to include your average food bills, transportation, clothing, entertainment and utility bills. It is also important to take in your credit card payments, loan repayments and if you have a mortgage and auto loan payments, write them down.

Calculate the average expenses you incur each month

Even those things that you seldom buy, such as:

Household items, minor house repairs and clothes

For example, if you buy clothes every three months, get the average cost of the clothes and allot them in your monthly budget.

Don’t forget the add-ons

If you’re paying for self-employment taxes, business taxes and insurance, put them in the expenses list. You can also collect receipts, get a copy of your credit report and track how you spend your cash and borrowed money each month.

Review your debt and credit card statements

If possible, make it a habit to review your debit card records as well as your checking accounts. A lot of people have been surprised how much their money ‘vanishes’ each month, but they’re more stunned by how they spend it.

‘Pay’ your savings account

You only have two options, consider your savings as a top expense you can’t live without, or a debt that you have to pay for a very high interest. You’ll thank yourself later, especially when you’re too old to work.

Here are some barriers to creating a retirement spending plan:

Retirement is not something that people really look forward to

A lot of people have troubles saving for their retirement income. It’s because many people are not really looking forward to old age – the days and years where they will no longer feel in control of their finances. Who is excited to stay in a retirement home? But, if you change your perspective and consider retirement as a adventure, a new beginning that can give your life a new meaning, then it will be an exciting event that you will work hard for.

With a retirement spending plan here’s never ‘enough’ money to save

You have goals and you really want to put away the money for them. But, you have lots of expenses, despite a stiff budget. If that’s the case, why don’t you set up an automatic savings plan? This way, your money will be automatically withdrawn from your checking account and deposited in your retirement plan, savings account or investment accounts. While you can deposit the retirement savings yourself, automation will ensure that you won’t miss doing so. If possible, put all your bonuses, raises and tips to your savings accounts. Make it a habit to reduce your expenses and set aside money for the future.

You can also revisit your retirement spending plan once and a while to adjust to income changes and other conditions that may require additional expenses such as: illness, job loss and other money-related concerns.

Take advantage of the power of compounding interest

If you want to make your small investments large enough to cover your retirement expenses, it’s time to consider investments with compounding interest.

Any amount of money you put into real estate, bonds, stocks, cash savings, or a mixture of these financial portfolio, will work for you, given enough time. The interest on the money you invested and the accumulated interests will eventually increase the size of your savings account. The longer you invest, the bigger the pool of money for your retirement.

Do you need help in obtaining debtor finance so you can save for retirement? Talk to our trustworthy loan experts at Australian Lending Centre. Enquire now!

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Financial Planning

Tips to Manage Financial Challenges

family facing financial struggles

If you are in a difficult situation facing financial challenges, learning how to properly use loans, for bad credit applicants, can help.

Do you have a steady source of income which covers not only your needs but also your wants as well? If you’re one of the thousands of Australians who want secure finances but are also dealing with financial issues, you may be wondering how you can achieve that reality.

What Are Your Financial Challenges?

Like many individuals in serious debt, you are probably worried about trying to pay for your daily living expenses and outstanding debts, while wishing to buy a home, a car and probably take a vacation. If so, don’t ever think that you’re alone in this aspect. There are also many struggling parents who need to save for your children’s education while paying off debts and adults with elderly parents to support. And, things get worse when you are going through a divorce, dealing with a death in your family or probably looking for a substitute job for the one you recently lost.

The truth is that there are many events in life that test not only our ability to cope financially but to think positively and overcome these trials with a smile.

Use your financing options to manage these financial challenges

Learn how to take control of your finances, boost your borrowing power and secure a better financial life with the following tips:

Write down each of your goals

Are you really determined to pay off all your high-interest loans? Or do you just need to have a better credit rating so you can borrow even more? Sometimes, we don’t actually know what we want. We just keep on looking for solutions to our immediate problems without looking into their root cause.

For example, if you have $5,000 worth of debts, both in consumer credits and loans, do you trace back to the causes of those purchases? Or, do you simply skip the reflection aspect and look for better financing that could lower your interests so you can have more money to spend on your needs and wants?

While there is nothing wrong in looking for better deals, such as low-interest and easy to pay bad credit loans. Finding the root of the problem in your finances can help you make better decisions with regard to budgeting and balancing your sources of revenue.

Swap the present wants for future needs

Are you spending a few hundred dollars on things you can live without—such as a gym membership, magazine subscription and a trip to your favourite coffee shop? If so, think of how you could use the money to build wealth, like starting a retirement plan to secure your finances in later years.

The sooner you start saving for retirement, the more financially secure you can be when you finally stop working. These contributions are typically tax-deductible, so aside from getting a tax credit for starting a retirement plan, you can also grow your money faster because savings grow faster in a retirement plan as a result of tax-free compounding.  In the end, even small contributions can make a significant difference over time.

Diversify your investments

Do you know how to protect yourself against ignorance? Warren Buffet says that it is through ‘diversification’. Since you’re not really sure if an investment will appreciate over time, you should diversify your portfolio to ensure that your exposure to any individual asset is limited.

What are the asset classes that you currently hold?

Are you involved in alternative investments like real estate, or are you simply invested in stocks or bonds?

Instead of chasing performance for a single investment class why don’t you add a good mix of real estate, cash, bonds and stocks in your egg basket? This way, you can protect your financial portfolio from wreaking havoc when the market declines. If you put more than 15% of your money into a company’s stock, you may be heading for disaster. While you may not be thinking of the worst-case scenario, preparing for these things can help you when you lose your job and your other sources of income. Losing your investments as well, all at once is not an easy crash to bounce from.

Grow your wealth

One of the most important benefits of bad credit loans is that you can use it for wealth maximisation. Create a long-term investment strategy that requires adjustment in your personal budgeting and your appetite for risk. This helps to ensure that no major market glitch will pull your finances down. You never know what will happen tomorrow, but one thing is for sure… life goes on and with the right mindset and professional help, you can enjoy a comfortable and financially stable lifestyle.

Contact the Australian Lending Centre today and receive financial advice from our specialist loans team.

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Financial Fitness

How Do I Fix My Credit Score?

fix my credit score

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

Request for free copies of your credit file 

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

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

Dispute credit errors

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

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

Minimise your credit card balances

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

Lower your utilisation rate

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

Will paying nuisance credit card balances fix my credit score?

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

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

Don’t get old accounts off your credit report

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

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

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

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

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

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Bad Credit Loans

No Guarantor Bad Credit Loans Explained

no guarantor bad credit loan

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

How can I get approved for bad credit loans?

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

Avoid making numerous credit applications simultaneously

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

Use a personal loan calculator

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

getting-loan

Check your credit score to know where you stand

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

What are my loan options if I have bad credit?

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

Secured personal loans

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

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

Short term loans

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

check-options

What Else Should I Consider?

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

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

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

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

Conclusion

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

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

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Mortgage

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

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

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

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

Some people don’t think second mortgages a wise investment

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

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

Home equity is a second mortgage

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

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

Diversification

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

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

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

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

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

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Personal Loans

The Best Bad Credit Loans – Personal Loans Vs Payday Loans

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

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

What Are Payday Loans?

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

However, a payday loan has its own disadvantages.

Why Are Payday loans are costly?

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

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

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

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

Payday Loan Debt Multiplies Fast

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

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

It is easy to get, but difficult to pay

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

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