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Personal Loans

Getting A Loan on Centrelink

If you’re already receiving Centrelink payments, then you understand just how helpful the extra cash can be, no matter your situation. Of course, there are times you made need a little more to tide you over.

Whether you’re hoping to take off on a family holiday or find yourself in an accident with hospital bills to pay back – life can be unexpected at the best of times, and we can’t always budget for it. So, what exactly are your options when it comes to getting a loan on Centrelink?

Getting A Loan On Centrelink

When looking at getting a loan on Centrelink, it can often feel like your options are very limited. If you’re relying on Centrelink for payments, many lenders aren’t as willing to take a risk on you. Many lenders will offer you fast cash loans, which are ideal for covering car repairs, hospital bills and other unexpected bills that crop up from time to time. But what if you’re looking for something more?

Getting a loan on Centrelink doesn’t have to be difficult. It’s important to know that traditional lenders aren’t your only option. If you look beyond the banks, you’ll find there are plenty of non-traditional lenders, ready to take you on and help out with your financial needs. It’s about shopping around and looking at all the different options on the market. Don’t let your Centrelink payments hold you back.

loan centrelink

Getting A Loan On Centrelink – Types Of Loans Available

If you’re looking at getting a loan on Centrelink, the first thing you need to consider is what type of loan you’re looking for.

Here are some for you to consider and choose from:

  • Personal loans: this is one of the most common types of loans people choose to take out. While many traditional lenders might overlook you if you rely on a Centrelink income, there are plenty of non-traditional lenders to help you out. A personal loan is just that – for your personal use. It can help pay for that new fridge, or get you overseas to see family. They generally have lower interest rates than credit cards and can be used for any purpose.
  • Car loans: looking to purchase a new car? Don’t let your Centrelink payments hold you back. There’s no reason getting a loan on Centrelink should be any more difficult than getting a regular loan. You can use your Centrelink payments as security for your loan, which can also help to lower the interest rate.
  • Payday loans: there are times you need a simple cash injection to tide you over until your next payday. These loans are generally under $2000 and are ideal for the short-term. However, you want to make sure you have the means to pay off the loan before you take it out. Otherwise, you could find yourself spiralling into debt.
  • Centrelink cash advance: it’s also worth looking into whether your eligible for a cash advance on your current Centrelink payments. Generally, you only have the option to do this once a year, but that could be all you need to get you back on your feet.

It’s important to take a look at your individual circumstances and work out what loan is best suited to your needs. Once you know what you’re after, you can shop around for the right lender who is happy to take you on with your Centrelink payments.

centrelink loan

Taking Out A Loan

Before taking out a loan on Centrelink payments, it’s important you’re prepared and know what to expect. You should never take out a loan you can’t pay back. Here’s what you need to consider:

  • Don’t miss payments: this will result in fees and also impact your credit score. Plus, you end up paying more interest over time so the debt costs more.
  • Factor it into your budget: work out how the loan can fit into your existing budget. Will you be able to pay it back each week? Do you need to cut down on some other expenses?
  • Read the fine print: make sure you know exactly what you’re signing, and all the fees involved before going ahead. You don’t want any nasty surprises.

Keeping this in mind will put you in the best position possible to pay back your loan and stay out of debt in the long run.

Expert Help

Are you ready to take out a loan using your Centrelink payments? Then chat with the experts at Australian Lending Centre today. Whether you have a bad credit score or are relying on Centrelink as your income, they will happily find the right loan to suit your needs. Pick up the phone and give us a call today.

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Debt Management Financial Planning Personal Loans

Dos and Don’ts of Getting a Loan on Centrelink

It’s true that when it comes to taking out a loan, lenders will assess your earnings as a part of the application process. If you are relying on Centrelink payments, it can make it a harder process. But there are other factors involved as well. This means that depending on your situation, you’ll still be able to take out a loan if you need it.

Getting a Loan on Centrelink

Wondering what the process is and how you can go about getting a loan on Centrelink? You’re not the only one. We have set up a clear list of dos and don’ts for you to follow when it comes to getting a loan whilst receiving Centrelink payments.

Check Which Benefit You Are On

For some lenders, Centrelink benefits can count as income. This means your chances of taking out a loan can be higher. This typically doesn’t apply to all payment types. For example: Youth Allowance, Newstart and Austudy are unlikely to be accepted as part of your income. Why? Because they are temporary payments. If your circumstances change, you will no longer be eligible to claim them.

The first step is to work out what benefit you are on. Next, you should calculate how much this benefit contributes to your income. Providing this information to your lender upfront will make it quick and easy to determine what you are eligible for when it comes to taking out a loan.

Don’t Focus On One Lender

Just like taking out a regular loan, it is important to shop around. Of course, you want to do this without it affecting your credit score. The trick is to do it in the space of a couple of weeks. This way, it will only count as one hard inquiry instead of multiple.

Take a look at different interest rates on offer to ensure you are getting the best deal. You can even shop between traditional (banks) and non-traditional lenders to find what works for you. There is no one-size-fits-all when it comes to taking out a loan. Therefore, it is important to do your research and shop around to get the best deal.

Do Look For Lenders That Work With Centrelink

Shopping around is important. However, it is even better if you can find lenders that state ‘Centrelink Accepted’ on their website. Of course, if you can’t find this straight up, it doesn’t automatically mean they won’t accept Government benefits as a payment. The next step is to call them up and chat directly to ask them. Many lenders will be upfront about their policies. Meaning they will communicate whether they accept Centrelink payments as a form of income when taking out a loan.

Don’t Borrow Above Your Means

Being on Centrelink payments already, you don’t want to borrow above your means. This can mean finding yourself unable to pay off the debt. It can actually end up quite expensive borrowing small amounts of money – and it won’t solve your problems. All loans come with interest, so if you are unable to pay them back in a timely manner, you will be left with increasing interest over time.

Do Look At The Types Of Loans Available

Personal loans aren’t the only types of loans available to you while you are on Centrelink. You can also look at what other loans you might qualify for. This way, you can ensure you are on the best loan for your needs.

Centrelink Advance Payment

Depending on what type of benefit you are on, you may qualify for a Centrelink advance payment. Usually these need to be repaid within six months, or they will be subtracted from the amount Centrelink pays you.

Payday Loan

Finding a lender who accepts Centrelink as an income means you are eligible for a payday loan. These are small loans that tide you over until your next payday (or Centrelink pay).

Car loan

You can also take out a car loan. Your payments are used as a security for your loan, which can offer your lower interest rates.

Don’t Limit Yourself

Just because you are receiving Centrelink, doesn’t mean you are limited in your options when it comes to taking out a loan. All it means is that you need to shop around and find the right lender for you and your needs.

Loans On Centrelink

Getting a loan on Centrelink is very possible, especially if you follow this guide of dos and don’ts. If you are looking for a lender who can help you out, check out Australian Lending Centre. With our expert advice, you will be back on your feet again in no time. Finding a loan when you are on Centrelink can be simple, as long as you know the right process involved and get the right advice.

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Bad Credit Loans Investment Property Loans Personal Loans

How To Get A Large Bad Credit Loan

It’s no longer impossible to secure a huge amount of bad credit. Despite the fact that lenders view people with bad credit as high-risk borrowers, specialised lenders will agree to the deal as long as you submit the right application. In fact, not all lenders look at the credit score at its face value. Some lenders may actually refuse someone with a high credit rating due to failure of meeting other lending requirements. Find out how to get a bad credit loan below.

It is a new niche market

Lending has changed since the big bank tightened their rules around lending. A bad credit lending institution will grant some loans despite a low credit score as long as the loan applicants are willing to improve their scores. If you are unable to secure affordable loans from mainstream lenders, you may still be able to access funds from a specialised lender if you meet their criteria.

Bad credit loans backed up by collateral will increase your chances of getting a larger loan

The presence of collateral reduces the risk for the lender; should you default on the loan the lender will be able to use the collateral as reimbursement.

The key is to offer collateral that matches the value of the amount you would like to borrow

There’s a huge difference in offering $2000 worth of collateral for a $30,000 bad credit loan. The value of the attached asset must be equivalent or higher than the loan it secures.

Income outweighs a poor credit score

While it is not easy to get approval for unsecured loans, lenders will look favorably on applications with proof of substantial income as it validates your financial capacity to repay the loan. Mainstream lenders usually require tax returns, payslips, account records and other forms of documentation to verify proof of income.

What if I can’t prove my income?

Specialised lenders like Australian Lending Centre use other means to verifying your credit rating and capacity to repay the loan. This means you can still obtain a loan despite the absence of some documents required by traditional lenders.

Cosigners assure lenders that no matter what happens, the monthly repayments will be made

If you cannot offer collateral equivalent to the value of your loan, you can look for a cosigner who will then be considered as your security option. Consigners guarantee lenders they will receive the loan repayments on time. If you were to default on your loan your cosigner will fulfill your debt obligation on your behalf.

But, there’s a catch – your cosigners must have excellent credit history. They must prove that their income is substantial enough to cover your repayments if you fail to do so.

Online lending has a bad reputation of making people with bad credit vulnerable to fraud. How do I make sure that a bad credit loan is suitable for someone like me who is struggling with debt?

Online lending is a convenient financing platform. A lot of people can easily apply for finance by simply completing an online form that only takes a few minutes to finish. However, it is your responsibility to differentiate a genuine company from a fraud.

First, look into the company profile

A lending firm that does not reveal its address nor gives away company information is a huge red flag. Be careful who you supply information to. Legitimate lenders will ensure the privacy of your personal details by using tight security measures whilst fraudulent firms will most likely use those details for illicit actions.

Second, check the comparison rates.

Don’t just focus on the interest rate. Australian companies must always list a comparison rate next to their advertised interest rate. The comparison rate is the true cost of the loan, it factors in the interest rate, fees and other charges that may be associated with the loan.

Third, study your financing options

If your situation is not desperate it is always better to consider your options and take your time when making decisions. Choose the loan that secures your debts and builds your credit at the same time. Additionally, be sure to borrow only through a stable financing company with a good reputation.

Look for a reliable and reputable lender that offers practical solutions to your financing needs. Make sure you only sign with a lender that gives you an affordable interest rate despite your low income and/or sub-par credit score. Remember that bad credit loans can help you build a strong financial profile, which will ultimately qualify you for a better future.