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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 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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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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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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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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Financial Planning

Australian Borrowers Cautioned to Curb Spending

Borrowers have been urged to stem their spending over the approaching festive season, as the world financial markets remain unstable. As the end of the year starts to approach, the Christmas holiday period is a common time to splurge on those gifts and leisure activities, without as much concern about the bank balance. This is one of the most common times to accumulate debts.

However the head of Consumer Advocacy at a mortgage corporation Lisa Montgomery, warns it is “an area of spending which traditionally tends to blow out over the last few months of the year and invariably leads to a New Year hangover.”

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Debt Management

Good Debts and bad Debts

As Australians earnings and lifestyle habits are increasing, so are their debts.  In order to manage and decrease these debts, Aussies need to become educated on their debts and which debts to stay away from.

The three most popular debts Australians tend to hold are: personal loans, credit cards and mortgages.  To catergorise these, personal loans and credit cards are considered bad debts as they usually result in nothing of value to show

for having the debts (i.e. there is no investment property at the end of the tunnel).  Additionally, these debts typically have highest interest rates and are used for assets that depreciate, or lose value over time (such as a motor vehicle).

A mortgage on the other hand is considered a good debt to have, as typically the asset will appreciate in value.

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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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Debt Management

Good Debt V.S. Bad Debt

As interest rates continue to rise, the question arises as to whether you are carrying too much personal debt.

Veda Advantage’s biannual Australian Debt Study revealed one in five Australians with debt were finding it difficult to make repayments or were unsure how they would make their next repayment.

Another report found more than 40% of Australians spent about half their monthly income repaying debts.

Everything is relative. If you are earning $50,000 and spending 50 per cent of your income on interest repayments, then it can be argued you are vulnerable to rate increases and/or defaulting on your loan(s). But if you earn $200,000, it can be quite a different story.

While some Australians may be at breaking point in the face of rising interest rates, there are many more that have a cushion to cope with such eventualities. Either they allowed for a 2% rise in interest rates (if they took out a loan recently) or they continued to make larger repayments during the global financial crisis as variable interest rates dropped to their lowest level in 50 years, creating a cushion in the process.

We all know credit card debt can be a hard debt to stay on top of. Credit card debt is about the worst bad debt you can have when you consider that some providers are charging more than 20% interest.

It’s also important to note that not all debt is bad debt. Bad debt is considered to be debt that you’re paying interest on, or debt incurred to purchase a depreciating asset, such as a car loan or a loan taken out for a holiday. A good debt is when you borrow to make money through investment, such as an investment property or other tax deductible options.

The Difference Between Good Debt and Bad Debt

Good Debt
Good debt is considered to be an investment debt that creates value; such as real-estate debt, home loan debt, business loans and even student loans.

Buying a home or refinancing to get rid of excessively high interest rates is considered good debt, as is generating debt to buy high-return stocks, bonds and other investments.

Bad Debt

The term bad debt is referred to when discussing the purchase of disposable items or durable goods using high interest credit cards and loans when you cannot afford to pay the balance in full at the end of each month.

If you are faced with more good or bad debt than you can handle, then consolidate your debt. Debt consolidation is the process of taking two or more loans and combining them into a single loan (a ‘debt consolidation loan’) that can help you to save money by reducing the amount of interest you pay, reduce your repayment periods and improve personal cash-flow.

Debt consolidation also makes your life a little easier by giving you one easy-to-manage repayment. Beyond using a debt consolidation loan to pay off your credit cards, personal loans and home loan, debt consolidation provides you with greater financial freedom as it saves you time and money.

Regardless of whether you have good debt or bad debt, if you would like a debt consolidation loan then contact the Australian Lending Centre on 1300 138 188 to learn about your options for debt consolidation.

 

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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.