Bad Credit Loan Essentials: You can still apply even if you have a poor credit history!
Having bad credit? But what is the meaning of bad credit?
To define a credit history for an individual when they underwent problems in paying bills or loans on time, the term bad credit is used. Having bad credit may lead to traditional lenders being unwilling to offer a loan. From a score that shows the credit risk of the borrower, the credit history is summed up.
Good vs Bad Credit
A high credit score means good credit, while a low credit score indicates bad credit. If there are missed payments, defaults or other negative things on your credit report, your score will go down, causing either approval with a higher interest rate, or loan denials from lenders.
Have a bad credit history, Can I still apply for a loan?
The answer is YES!!! We understand, there might be several reasons behind a bad credit. However, the good news for you is, bad credit history can be a secondary criterion if you have a regular source of income from the past 3 months. Then you are eligible to apply for bad credit loans online.
Eligibility requirements of Bad credit loans
Before the formal assessment of an application to a bad credit loan, there are a few preliminary eligibility requirements that you need to meet. You are eligible to apply for a bad credit loan in Australia if you:
- Are 18 or above
- Currently have a regular income source (for 90+ days before applying)
- Are an Australian resident or a citizen
- Have an internet banking set up
- Have an active contact number as well as an email address.
How does a bad credit loan work?
Bad credit loans work in a little different way compared to a traditional personal loan. Additionally, if there are any defaults or missed payments that have left your credit score in tatters, you can still apply.
- When the customer applies for a certain amount, the credit provider will evaluate and analyze their application. If the application is accepted, the creditor will make an offer.
- Customers then make repayments as per the loan terms are decided. Repayments stop when the customer has repaid all the amount of bad credit loan.
- The loans for bad credit, nevertheless, are more costly than that of the standard personal loans. In other words, creditors will charge greater rates as well as fees to offset the increased risk.
- While these creditors will still take your credit history sometimes into account, which we do not, but subsequent things are also taken into consideration:
- Monthly income and expenses
- Repayment history of the loans
- Saving habits
- Assets used as security
How can you apply for bad credit loans?
You can apply in minutes as it is 100% online application process. You can submit the application online which is a very easy, quick, and cost-free process. Make sure you qualify by reading or asking about provision eligibility before applying for the loan. Bad credit loans need to be paid back like any other loan.
Common Frequently Asked Questions (FAQs)
What is a bad credit loan?
It is a loan that is offered to people who have a low credit score. A bad credit loan provides you with a second chance at finance.
Why should I opt for bad credit loans?
We have a team of experts who have the understanding and have experience of helping thousands of Australians getting a second chance at finance. We provide a range of fast and flexible bad credit loans that are customized towards your specific financial situation. We are determined to assist in your financial journey.
For what can a bad credit loan be used?
With a bad credit loan, you are independent to do well whatever it is that you want. You can pay your credit card bills, purchase a car, travel, and hire new staff. The possibilities are endless with bad credit loans.
How to apply for a bad credit loan?
It is really easy to apply for a loan with bad credit loans. Simply fill out our online enquiry form. Ensure that all the provided information by you is honest as well as accurate. A loan expert will contact you for a hassle-free and no-obligation consultation.
What is a credit report?
A document containing details of your personal information and financial history is called a credit report.
How does my credit rating affect me?
Based on late payments and even just applying for credit, your credit file is affected. If you have any defaults listed or you have made multiple credit applications, it may be hard for you to obtain credit.
How can I get a bad credit rating?
Even changing your address and not letting your creditors know or a few small missed payments can result in a black mark on your credit file.
Is your repayment schedule flexible?
We offer flexible repayment schedules. Pay your loan back in different instalments like weekly, fortnightly, or monthly. The choice is yours.
Can I apply for a bad credit loan?
To be eligible to apply for a loan, you must have the following:
- 18 years of age
- Approach to bank statements for a minimum of 90 days income
- Australian Citizen or permanent resident
- Basic contact info like that of cell phone number or an email address.