A Guide to Cash Loans with Low-Interest Loans for Bad Credit

Are you looking for a cash loan and need help with the approval process? Do you want to take out a loan despite a poor credit? Read through our guide about personal loan offers.

Are you facing a huge unexpected medical bill? Or are you planning to make a down payment for your dream home? Don’t use your credit card to cover that expense. You are bound to get bogged down by the huge interest that you would need to pay. Instead, consider applying for a personal loan. But, before going to a bank or a lending company, there are some things that you will need to know.

What is a personal loan?

Lenders let you borrow a certain amount of money that you can use for whatever reason you have. It could be used to finance a holiday or pay for home renovations. You have to repay this loan plus the interest in equal payments. These payments will be spread out over an agreed period. On average, personal loans have smaller interest rates than credit cards.

If you are thinking of borrowing money, it pays to get to know what you are getting into. Don’t settle for the first institution that offers to give you the loan. Know what to look for and how to compare rates from different lending facilities so that you can get the best deal.

In Australia, the common eligibility qualification for personal loans are:

• You must be 18 years old or older
• Must be a permanent resident or hold an Australian citizenship
• You must have regular income and meet specific income requirements (varies depending on the lending company)
• Must have a good credit score

What are the different kinds of personal loans?

This type of loan comes in different kinds. There are fixed interest rates. From the name, it means the interest rate for the amount you need to repay stays the same throughout the loan period. Some institutions also offer variable interest rates.

You can also apply for an unsecured or secured loan. Unsecured loans are loans that you make where the lending company doesn’t require an asset for security. This means the facility believes that you are capable of repaying the debt just by the strength of your income. If you are unable to pay, the moneylender may opt to take you to court s that they can recover the amount they loaned you. Since there is a higher risk of the lender not getting paid, an unsecured loan typically has a higher interest rate.

Secured loans, on the other hand, require the borrower to provide a guarantee that he or she will be repaying the loan through the provision of an asset. A lending company may accept a car or a property that you already own as your security. If you fail to repay your loan, the company will then claim ownership of the asset and sell it. Because of the added security, loans of this kind tend to have lower interest rates.

How is the interest rate for the personal loan computed?

The rate that you will be given by the lending facility will depend on your income, investments, expenses, and credit history. That is why you must check your credit score and possibly improve it before applying for a loan. Some lending institutions also offer lower rates to individuals that have a loan guarantor. This is a friend, an associate, or a family member that is willing to take the responsibility of shouldering the loan if you miss any repayments.

What is debt consolidation and what facilities offer it?

A debt consolidation loan essentially combines all of your smaller debt into one loan. It is offered by lending companies to people who are struggling with juggling payments for credit card debts, store credits, or even personal loans. By consolidating one’s debt, you can get a lower interest rate, and you only need to keep track of one loan. This makes it easier for you to get out of debt.

Lenders consider these four things before issuing any borrower a debt consolidation loan:

Income – This is considered the most important factor that lenders look at to see if you qualify for a loan. Do you have the means to meet their terms of the loan? Credit history – The lender will factor in your history of repaying, or failure to repay previous loans.

Financial stability – The lender will want to assess if your current financial situation will allow you to repay the loan.

Equity – Since you already have a history of struggling with debt, the lender will look at the collateral that you can offer. This can be your home equity. Every lender has its qualifications to see if you will be granted a debt consolidation or not. You need to talk to their financial adviser to see if you can qualify and if debt consolidation is indeed the right solution for you. Different companies offer this type of service.

Our Money Market

OMM offers simple unsecured loans with interest rates that start at 6.29%. You can borrow up to $75,000 online. The good thing about this lending fai=cility is that they have no account keeping fees, early repayment fees, or exit fees. Plus, you get to choose whether you will make the repayments every week, every fortnight, or every month for a period of 1 to 7 years.

According to their calculator, if you were to borrow $5,000 to be repaid over 3 years, the interest rate will be 6.29%. This means your monthly payments shall be $153. The total amount to be repaid is $5,508.00.

Now Finance

Now Finance also offers debt consolidation loans. Loan terms can be anywhere between 18 to 84 months. The lowest interest rate they offer is 5.95% and you can also pay your loan weekly or fortnightly. The good thing about a loan from Now Finance is that there are also no hidden fees to worry about. To qualify for a loan with Now Finance, you have to:

• Have no paid or unpaid defaults.
• Have no active payday loans
• Be permanently employed for 2 years or six months (for casual employees)
• Have no prior or current bankruptcy
• Hold an Australian passport, current Australian drivers license, or current Medicare Card

According to their calculator, if you were to borrow $5,000 to be repaid over 3 years, the interest rate will be 5.95%. This means your monthly payments shall be $152. The total amount to be repaid is $5,472.00.

Money Me

Application for a personal loan with Money Me is only going to take 3 minutes if you have your necessary documents ready. You also need to have your bank details, a valid email address, and a mobile phone number. Once your loan has been approved, they can transfer the money to your bank account in as little as one hour.

According to their calculator, if you were to borrow $5,000 to be repaid over 3 years, the interest rate will be 6.25%. This means your monthly payments shall be $153. The total amount to be repaid is $5,508.00. Adding their total charges of $1,181.91, the total repayments will reach $6,181.91.

Simple Loans

Simple offers a very low rate for personal loans. You can apply and get the result in 7 minutes. The facility claims that you will receive the funds within the next business day. Just like the other lending companies above, you can borrow a maximum of $50,000 for 1 up to 7 years. They don’t charge early repayment fees nor exit fees. On top of the eligibility mentioned above, Symple Loans requires borrowers to be earning more than $25,000 annually. According to their calculator, if you were to borrow $5,000 to be repaid over 3 years, the interest rate will be 5.75%. This means your monthly payments shall be $152. The total amount to be repaid is $5,472.00.

Society One

This is one of Australia’s leading lending companies. You can get your rate and apply for a loan at their website in as little as 7 minutes. Once the loan has been approved, you will get the funds in 1 business day. They also offer loans for debt consolidation. To apply here, you must be: 21 years old or older Employed and earn more than $30,000 annually

According to their calculator, if you were to borrow $5,000 to be repaid over 3 years, the interest rate will be 6.25%. This means your monthly payments shall be $152. The total amount to be repaid is $5,472.00. This rate is for people who have exceptionally good credit scores. If you have an average credit history, the monthly payment goes up to $190.

Can I apply for a loan if I have a bad credit history?

On average, the credit score in Australia is 550. If your score is below that, then you are considered to have a bad credit score. Having a bad credit history means you have a history of paid or unpaid defaults in previous debts. It can also mean that you previously filed for bankruptcy. This can make applying for a loan challenging because your credit score indicates that you may not be financially stable.

However, this doesn’t mean that you cannot apply for a loan. Some lenders specifically offer loans to those who have a poor credit score. These are mostly non-bank lenders. Of course, applications to these are still subject to the facility’s approval. In this case, the lender looks at your current financial capacity and your circumstances.

Note that bad credit loans have a substantially higher interest rate. Naturally, the riskier you seem to a lender, the higher the rate they will charge you. Aside from the secured bad credit loans and a guarantor personal loan, a person with a poor credit score can also apply for a no-interest loan under the NILS (No Interest Loans Scheme). This offers loans that do not come with credit checks, interest fees, or additional charges. However, the maximum amount you can borrow is $1,500 and this has to be used to buy essential goods or pay for essential services. To be able to get this loan, you must have a Pension Card or a Health Care Card. You will also qualify if your annual salary is lower than $45,500 after tax. Another requirement for this loan is that you must have been a resident at your address for over three months and can prove that you are capable of repaying the loan.

Final Thoughts

If you have a great credit score and are gainfully employed in Australia, you can get the best deals from Symple Loans. They offer the lowest interest rate and you can receive the money the next day. If you have a bad credit history or are not eligible, there are still money lending companies that will give you a loan. You just need to shop for the best rates and be careful of hidden fees.