Bad Credit Personal Loan

Bad credit personal loan

Personal Loans for people with Bad Credit History

Bad credit personal loans is a term or phrase given to personal loans for people who have, or have had, credit problems. There are personal loan lenders Australia wide that look at a persons capacity to pay for the loan rather than any credit issues they may have had in the past.

Personal loans for people with bad credit history can be secured personal loans, or unsecured personal loans, and will depend on the lending criteria of the lender, as well as the amount of money wanting to be borrowed, amongst other factors described in the 6 ‘C’ of credit assessment.

Typically bad credit loans are for small amounts, especially if your income is small, or you are on a pension, therefore these type of loans are most often offered by:

  1. Payday loan lenders
  2. Cash advance loan lenders, and
  3. Pawn brokers

It is very important to read the lending criteria for loans the different lenders have advertising bad credit loans, and know exactly what you have to pay back including any fees and charges. There will generally be application fees, and if there is an interest component it will be higher than main stream loans for people with good credit; say with a bank for example. However this may be the second chance that you are looking for, and many people do become repeat customers of bad credit loan lenders.

There are many reasons for the purpose of a bad credit personal loan with some of the more common reasons listed below:

  1. Paying bills; an unexpected bill has come in and you are short of cash
  2. Emergency repairs; something has broken, and not covered by insurance
  3. White goods; such as fridges and washing machines
  4. Furniture; lounges to Televisions
  5. Cars; and security is often taken, making the loan type a secured personal loan, bad credit car loans are the most common secured loan
  6. Moving or setting up costs

It would also be advisable to discuss any application for finance with a financial professional before signing any loan contract.

Have you had a bad credit personal loan recently? Let us know about your experience with the lender, who it was with and your thoughts on their service.