5 Guaranteed Best Bad Credit Lenders In Australia
Do you know that you can get a loan with bad credit in Australia? Well, we will be showing you some instructions you will have to follow and also a list of bad credit lenders in Australia.
It’s really a problem when you have bad credit especially when you need financial assistance for emergencies. There are two sets of loans you can have if you have a bad credit and they are the secured and unsecured bad credit loans.
Some of the loans we will be discussing come with lower interest rates and fees.
Table of content
- What are secured bad credit loans?
- What are unsecured bad credit loans?
- How to get a bad credit loan in Australia
- How to compare bad credit loans in Australia
- Eligibility criteria for bad credit loans in Australia
- 5 Best Bad Credit Lenders in Australia
Without further ado, let’s start…
What Is Secured Bad Credit Loans?
These are loans that can be used for a large purchase such as vehicle and many others provided you have an asset that can be used as security. These loans include car loans, secured personal loans, home equity loans etc.
What Are Unsecured Bad Credit Loans?
These are loans you can take if you don’t have assets to secure the loan.
How To Get A Bad Credit Loan In Australia
This can be a tricky process but we are going to guide you through the right steps so just follow up. Let’s take you a few steps highlighted below:
- Do a research across bad credit loan providers and compare the rates, fees and features of the loans applicable
- Check to see if your credit history, employment and income history falls in line with the conditions for a successful application with a potential lender.
- Critically analyze the amount you will have to pay until you are done with repayments. Ensure that it does not exceed your nominal budget.
After you have met the conditions and requirements, you can then proceed to submitting your application and once your application has been approved, read and accept the terms and conditions of your intended lender.
The funds will be transferred directly to your bank account.
How To Compare Bad Credit Loans In Australia
It’s normal if you want to make some comparisons but you should consider the following when doing this:
- Loan term
This refers to the amount of time or duration that you will be required to pay the loan.
- Loan amount
This refers to the minimum and maximum amount of loan you can borrow.
- Interest rate
This is the fixed or variable rate for any loan you will be collecting and since it is a bad credit loan, these rates may be quite higher for you.
- Flexibility in repayments
You will also need to check the repayment schedule of the loan you want to collect and know if it suits you better. Some loans have a weekly repayment schedule while some others have a monthly repayment schedule.
Eligibility Criteria For Bad Credit Loans In Australia
When you are applying for a bad credit loan, you will have to meet some requirements before you can assess the loan and some of these requirements are:
- You must be 18 years and above
- You must be an Australian citizen or a permanent resident of Australia
- You must have some sort of employment
- You must have a collateral or asset for a secured bad credit loan
5 best Bad Credit Lenders in Australia
- Australian Lending Centre
- BIDeLoan
- Direct Finance Loans
- Ferratum Loans
- Cash Train Loans
- Australian Lending Centre
These lenders are known as one of the marketplaces where you can get a bad credit loan in Australia. This loan marketplace offers a wide range of loan options like home loans, personal loans, business loans and many others.
All of these are applicable whether you have a bad credit or not. The process of application is easy, straightforward and quick.
- BIDeLoan
This lender offers home loans as low as $150,000 and as high as $1.5 million which is paid monthly and incurs an interest rate of about 80%. BIDeLoan offer variable interest rates and will require you to pay an application fee in advance of about $1,499.
Also, loan terms vary from around 15 to 30 years.
- Direct Finance Loans
This lender offers bad credit loans in Australia with some conditions that you must fulfill. You must have collateral and a stipulated income level and also you must exhibit a certain level of stability.
- Ferratum Loans
This lender offers Payday loans from $300 to about $1,900 which can span for up to 6 months and it has an interest rate of about 20% of the principal amount plus a 4% monthly charge.
- Cash Train Loans
This lender offers bad credit payday loans in Australia up to about $2,000 which can be transferred to your account within 24 hours. The minimum amount of loan offered by Cash Train is about $200 and loan terms may range from as little as 10 weeks to as much as 3 weeks.
The interest rates are up to 20% of the principal amount plus a 4% monthly charge.
Final Note
We have shown you a list of the best bad credit lenders in Australia and these lenders can afford you loan even when you have a bad credit. We have also shown you the requirements for securing this type of loans so the ball is in your court now to choose the best lender that suits you better.