Even if you are blacklisted, you can still apply for a loan for blacklisted individuals – and enjoy approved financing today!
If you are pressed by certain circumstances such as broken car, roof requiring repair or a high dental bill, you have no choice but to borrow money. Can you get the cash which you need without placing an asset as security?
It is possible to obtain an unsecured loan for bad credit. There are different solutions available.
Compare & choose the most suitable loan for you
When you have bad credit, you cannot hope to get one of the loans with the lowest interest rates and fees. Instead of wasting time and energy looking into these products, you should pay closer attention to the ones which are fairly affordable and can be of use to you. You should choose the loan which will help you to resolve your financial emergency in the most acceptable way given the circumstances.
You may want to rethink your decision to get an unsecured loan
This is because these loans have some of the highest interest rates.
With a secured loan, you can get a much lower interest. It is possible to use any asset as security. The list of options is not limited to your house.
It's possible to use your car to get a secured loan
You can do this when you have repaid most or all of the outstanding balance on your car loan. This will enable you to use the equity which you have in the vehicle as security. The so called car title loans offer lower interest rates and smaller monthly payments. While the loan may be more affordable and easier to repay, you have to take into account the risk which you will assume. If you default on the repayment, you can lose your car. In this case, you may not be able to travel to work and this will lead to loss of employment income.
It is possible to use smaller assets with lower value as security. The list includes electronic equipment, jewellery and art works. There are also lenders who accept stocks and investment portfolios. In any case, you have to ensure that you are dealing with a licensed micro lender.
Help from a Co-Signer
You will increase your chances of qualifying for an unsecured loan with bad credit if you apply jointly with a co-signer. When you get a loan together with another person, you will share the responsibility of its repayment. If you cannot pay back what you owe, the other person will have to take over. It is best if the co-signer is a person with stable employment income, low level of debt and excellent credit history.
It may not be very easy to find a co-signer given the responsibility which this person will have to assume. If you become unable to make the regular payments at one point due to illness, injury or job loss, the co-signer will have to do it. In this case, the person will experience a considerable reduction in their disposable income. They will have more debt on their credit file and this will lower their chances of getting another loan.
You should have full understanding of the complexity of the situation.
Unsecured loans to Australians with bad credit
There are some financial companies which specialise in providing unsecured loans to Australians with bad credit. The qualifying requirements are usually very low so you can get a loan even if your credit history is very bad. The easy access comes at a price, however. The interest rates and fees are quite high. The cost of borrowing may be higher than the loan principal. You need to stay away from these expensive loans as they can get you into more trouble.
It is common for the lenders offering bad credit loans to engage in a practice called predatory lending. They target people who have been rejected for a loan by many different lenders. They make their credit products easily accessible, but the terms and conditions are quite burdening. You should not expect them to show any flexibility either. Since the loan will certainly be quite expensive, you may be able to repay it. In this way, you will get into more debt and your financial situation will worsen considerably.
It is essential that you apply for loans only to reputable providers with responsible lending practices.
Compare different loans
It is best if you compare different loans in order to select the most suitable one. You have to ensure that the loan is affordable for you to repay. It is best if it can help you to improve your credit history as well. You should confirm that it will be reported to the credit reporting bodies. In this way, once you pay back the loan, you will have higher chances of qualifying for more affordable ones in the future.
You should select the lender carefully as well. You should focus only on licensed lenders. Credit unions are often able to show more flexibility compared to banks so you should definitely give them a try.
Just remember that the most important thing is for the loan to be affordable to you.