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BAD CREDIT LOANS INFORMATION
Please see information below on Bad Credit Loans.
What is a Bad Credit Loan?
A bad credit loan is a solution when you have been refused a mainstream loan. Every Australian, no matter if they are rich or poor, has a credit ranking. If you have even taken any form of loan in the past (credit card, personal loan, home loan ) this will be noted on your credit file.
Any problems you might have had in the past with repayments or bill payments, this will affect your credit score and therefore your chances of getting a loan from the normal bank. You are seen as a higher risk to the bank because of your financial history, and may therefore be turned down.
Bad credit loans are specially designed for people who have had problems thanks to their credit rating or been rejected by high street lenders. There are many types of bad credit loans on the market from personal to mortgages to even low credit credit cards!
How Can I get a Bad Credit Loan?
The easiest way to get a bad credit loan is to go via a specialist company who can search the loan market for you. There are many on the internet, and after a short online application process (no faxing!) they will take your requirements and search the loan market.
Specialist loan brokers will almost likely find you the loan you want, but you can also apply for bad credit loans directly from a lender though this requires a bit more work from your side, to find one!
Look out for extra features like the ability to rebuild your credit rating based on a good 'repayment performance' on this loan.
As their name suggests, bad credit loans are aimed at loans for people wih bad credit problems.
Are there any Risks?
As with any type of loan, bad credit loans carry a certain level of risk to your personal circumstances. If you are unable to meet the repayments on your loan you might end up in more debt and your credit file will look less attractive.
Note that the interest rate on a bad credit loan might be higher than a similar loan from the normal bank but this is to be expected, as the lender is taking into account the increased risk from a 'low credit' borrower.
If you take a secured (home or car) loan from a bad credit loan provider, remember that your property can be seized if you do not keep up with repayments on the loan. If the roof over your head is at stake, you stand to lose quite a lot.
Please Note: www.whichwaytopay.com.au is not authorised to give advice under the ASIC (Australian Securities & Investments Commission).
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