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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.

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Interest Rates

A Practical Guide On How To Get the Most Affordable Loan Interest Rates

Do you want to get the best interest rates on your loans? Getting into debt is already going to cost you money, and a few percentage points can definitely cost you more than you are prepared to get. Here are tips on how to get the most affordable loan interest rates when seeking for finance.

Understand the type of interest rates you are getting

Interest rates vary depending on the type of loan. For example, refinancing has fixed or variable interest rates. A second mortgage can have a fixed or variable interest rate which is generally more costly than the first mortgage. But, the interest rate in a home equity line of credit is always variable; it goes up and down depending on the changes in the market.

Check your existing credit

If you want to get the best interest rate for a mortgage, business loan, personal loan or any type of loan, your existing credit must be good enough for lenders to entrust you with their money. If you have bad credit, lenders will consider you as a high-risk borrower and would increase your loan’s interest rate to compensate for the risk. That’s why it is advisable to get your credit report, challenge any wrong information and clean up your debts.

If you no longer have time to repair your credit before taking out a new loan, debt consolidation loans can be your practical option. It can help you increase your credit score simply because you are paying off your multiple debts at once. In the long run, you can get a few extra credit score points that could save you thousands of dollars the next time you apply for a loan.

affordable-rates

Get the right timing when choosing between fixed-rate and adjustable interest rates

If you’re smart then you can get the most affordable loan interest rates by timing your loan right. If you’re paying the loan over a short period of time, an adjustable-rate can be a cheaper option. But, if you’re not sure of your finances and market fluctuations, a fixed rate could be a good idea to ensure you know how much you are paying in the long run.

Always consider your personal financial conditions as well as the market fluctuations when making a decision. Rates may rise, and your financial plans may change so always think twice before you choose the type of interest rates to pick. Sometimes if there is not that big a spread, it might not be worth the gamble especially if rates rise and your plans change.

Request for a no-obligation loan cost estimate

The Australian Lending Centre offers an estimate of the overall costs of your targeted loan. Check the costs to compare the loan terms with other loan products to see which type of loan offers a better rate. You can also check if one lender offers significantly lower interest rates than the other. But, don’t just focus on the interest rate – think of the overall loan cost. Some lenders may offer lower interest but they may charge you with exorbitant fees and costs.

Contact the Australian Lending Centre today to know which loan offers the best interest rates in the market!

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News

Beware of Loan Sharks with Unconventional Loan Collaterals

According to Southern Metropolis Daily, loan sharks found a new and unconventional way to guarantee for loans. They ask female university students for nude photos in order to get a loan.

Loan sharks and their unconventional loan collaterals

What is the newest collateral for a loan? Naked pictures of students. More and more loan sharks based in China ask cash-strapped female students to send them nude photos of themselves, along with a copy of their ID card, as unconventional loan collateral.

Students are warned that if they do not make their payments on time, the pictures will be published.

According to the mentioned newspaper, a young female student borrowed first only 500 Yuan, which is the equivalent of $100 AUD. She took the loan from an online lender, and the interest rate was 30 percent per week. Then, being unable to pay the first loan on time, she took a new one and then a new one, and so on. Soon, she had a debt of 55,000 Yuan or $11,300 AUD. At that moment, her lender demanded a naked photo of her, as a sort of collateral for a new loan.

The Chinese student told the newspaper that she was not the only one in this situation. In fact, she knows many female classmates who were asked to send nude photos as a guarantee for their loans, just that they were afraid to speak up.

A reporter who posed as a potential client was able to gain enough evidence of the unconventional collaterals demanded by loan sharks. Besides the nude pictures, these private lenders also ask for various personal information, such as ID numbers, phone numbers, parent’s name, home address, student registration information, and even the roommates’ contact info. The report said that if you can’t make your payment on time, you are threatened that all of these details will be made public.

Pay attention to your safety and confidentiality

Experts advise Aussies in need of a loan to give special attention to the lender they choose. Loan sharks are very common nowadays, and their slyness can be extremely dangerous, especially for those who have little knowledge about the financial field.

If you don’t figure out things in time, you may get in real trouble, from paying exorbitant amounts of money to being blackmailed. Also, you may come across identity thief.

A safe way to borrow money is to opt only for reputable institutions, such as big banks or trusted non-bank lenders. When it comes to your safety and confidentiality, it is better not to take any risks.

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Short Term Loans

Short Term Loans vs Credit Cards: Pros and Cons

Short Term Loans vs Credit Cards

Are you running short of cash? If you know how to make ends meet, you surely would find ways to overcome it without getting any debt. But if the need for money is drastic and necessary, you may not have any other choice but to apply for financing. For sudden and emergency needs, you may consider two logical and reliable options: short term loans vs credit cards. Which of the two should you choose? Let’s weigh up the pro’s and con’s of both.