Sometimes the people that need loans the most are turned away because they have a low credit score or a bad credit history.
Traditional banks refuse to help these people in their time of need and turn them away empty-handed. Life happens and no one is perfect, we understand your credit history may not be the best and offer loans even if you have bad credit.
More and more Australian citizens need to rely on emergency loans to pay their bills or make their paycheck stretch a little more. Bad credit loans can be used to pay outstanding bills, avoid defaulting on previous payment commitments.
What is a bad credit loan?
A bad credit loan is a loan that is offered to people who have a history of bad credit and have been turned down by traditional lenders and can also be called a blacklisted loan. If you have defaulted on payments or have been declared bankrupt this loan solution could be what you are looking for.
Types of loans for people with bad credit
Depending on your individual circumstances and requirements, we will advise you on which type of bad credit loan is right for you. We offer two types of bad credit loans there are secured and unsecured bad credit loans.
It is important to remember that you have proven to be a high-risk client. Interest rates will vary depending on your individual circumstances and credit score. If you decide to take a loan over a longer period of time you will end up paying more interest.
Secured loans for people with bad credit
A secured bad credit loan is guaranteed against one of your assets this can be any item of value, including your vehicle, house or expensive equipment. This is a risky type of personal loan because if you are unable to make the payments, then you may be at risk of losing the item that you have listed as collateral.
Unsecured loans for people with bad credit
If you have a bad credit history and you don’t have an item of value to use as collateral against a loan then this would be the option for you. Unsecured bad credit solutions are backed by the Australian government we will assist you by helping you consolidate your debt into one easy to manage payment plan. This option is perfect for those that have a lot of different bills and accounts to pay. Each account will be settled so there will be no need to be harassed by creditors and charged extra penalty fees.
Another option to obtain a loan when you have bad credit is to ask your family or friends to assist you with a loan.
Apply for a Bad credit loan online
To apply for a bad credit loan is very simple and the process can be completed online from start to finish. With our bad credit loans, we look at your ability to pay back the loan with your current circumstances so your bad credit score won’t necessarily disqualify you from obtaining a loan.
Bad credit loans approved quickly
Bad credit loans are riskier for the lender as you have already shown that you might not have the best record for paying the money back on time. So granting you a quick cash loan as a high-risk client might take a little bit longer to make sure that we will be able to assist you.
The process of making sure you can afford to take a loan can be completed in as little as 48 hours.
Improve your credit history
When you are granted a bad credit loan and you make the monthly payments on time this will improve your credit history over time so the next time you might be able to qualify for more money and improve your overall credit score.
How much does a Bad credit loan cost?
Bad credit loans can cost a little more than regular long or short-term loans as you are seen as a higher risk client. You will be charged a once off $400 establishment fee and your interest rate will be based on a percentage fee of the entire loan amount.
To make sure that you understand the loan agreement and that there are no hidden fees or nasty surprises our contacts are easy to read and completely transparent.
If you want to pay back the loan early then you are encouraged to do so, we will not charge you an early repayment fee and the sooner that you pay the less interest you will pay.
Benefits of a Loan for people with bad credit
There are some benefits of applying for a bad credit loan. Bad credit loans are simple to apply for online and even if a credit check is performed it will not affect the outcome of your loan application. Bad credit loans can be unsecured so there is no risk of you losing your collateral.
The repayment terms are scheduled to when you get paid and on a direct debit system, especially if you opt for a payday loan, so you don’t need to worry about skipping a payment. You will be able to improve your credit score if you all your payments on time and this could allow you to borrow more money more easily in the future.
Peer-to-peer lending as an alternative solution
Another type of bad credit loan option is peer-to-peer lending. Peer-to-peer lending allows you to benefit from lower rates as you will be charged a lower annual percentage rate. You can apply without negatively affecting your credit score and you can customize the loan to suit your needs.
Helping you get your Bad credit loan approved
To give your online loan application the best chance of being approved it is advisable to make sure that you meet all of the lending criteria before you apply.
Know your credit score and credit history by applying for a free credit report that documents your entire financial history. Make sure you can afford a bad credit loan and that you have exhausted all other options and compare lender fees.
Compare interest rates and initiation fees and make sure that you can afford to meet the repayment terms.