17Jan2020

Ways To Pay Down Your Holiday Debt

January 17, 2020

bad credit loans, bad credit loans Australia, online loans for bad credit Bad Credit Loans

Have you overindulged over the holiday period? It’s hard to start the year when you have post-holiday debt to deal with.

It’s time to get back into your normal spending routine after spending more on events and parties during the holidays. Take control of your finances now before it snowballs into a debt crisis all year long.

Here are some ways to help you pay down your holiday debt.

Budget

“Create a budget and stick to it” — is one of the fundamental steps that should be taken when cleaning up your finances.

Figure out how much is coming in (income), going out (spending), and surplus each month to put towards paying off your debts.

Write everything out and make a list of all of your payments and bills — from rent to loan. Segregate your fixed expenses (rent or insurance) from your variable expenses (utilities or entertainment). Obviously, there’s room to cut costs from your variable expenses.

To make budgeting easier and accessible, try one of the many budgeting apps available like Goodbudget or Wally.

Change your habits

Now, it’s time to put that budget into action. Making favourable changes in your money habits is the cure to your holiday debt hangover.

You can still enjoy your regular perks like coffee or dinner with friends, but it’s better to try and change some of your habits. Instead of going out for dinner 2x a week, set aside the money you would’ve spent on the second night to pay off your debt.

Some changes to your habits can build up into a large amount of savings.

Ways To Pay Down Your Holiday Debt

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Debt consolidation

When it comes to paying off your debt, especially multiple debts, you have the option to consolidate them all into one loan.

With debt consolidation loan, you only have one loan to worry about. This can speed up paying off the principal, which makes dealing with the balance faster.

Debt consolidation can improve your credit score and there’s a tax break too.

Automate your debt payoff

When you already know the amount you need to pay each month for your goal, you can set up automatic payments with your bank to transfer money whenever you get paid. It’s best to transfer these funds immediately so you won’t get tempted to spend it.

Furthermore, you won’t have to worry about missing payments, which can hurt your credit score. You can also let the automatically reduced balance motivate you to keep saving.

Bad credit loans in Australia

It’s not impossible to find lenders who will work with you if you have a bad credit.

Cigno is more understanding of your needs and circumstances.

Apply through Cigno today and they will act as your agent to help you with your bad credit loans application.

Take the step by simply completing the online application form.

Apply now!

2Jan2020

How to Get a Loan with Bad Credit

January 2, 2020

Dean Olave

bad credit loans, bad credit loans Australia, no credit check loans, payday loans Bad Credit Loans, Easy Loans, No Credit Check Loans

A blemish on your credit history can make it more difficult to get approved for a loan, but you do have options. If you need a financial solution that won’t rule you out based on past mistakes, the good news is there are lenders who will still consider your application.

In this article, we look at how to get a loan with bad credit, the steps you should take, and some advice for improving your credit history moving forward. We also discuss home and car loans specifically.

Step 1: Check Your Credit History

The first thing you need to do is find out just how problematic your credit history might be. This also gives you the opportunity to review your report for any potential errors – the last thing you need is a false incident negatively impacting your credit score.

There are several credit-reporting bodies that are obligated to provide your credit report for free once per year. These include:

You can also access a free report within 90 days of having a loan application rejected.

You can read more about accessing your credit report on the government’s Office of the Australian Information Commissioner website.

Step 2: Select a Viable Lender

Lenders to Choose From - Cigno Loans

Once you know if your credit rating is excellent, very good, good, average or below average, you’ll be better able to apply with the appropriate lenders. If your score is below average, you can skip the big banks and other institutions that won’t consider you and move directly to companies that specialise in bad-credit loans.

It’s also worth looking for a lender that uses real people to make decisions rather than relying on algorithms. A human is sometimes more likely to say yes – even when a computer says no.

Finding the right lender can feel overwhelming, so you may prefer to work with a finance specialist like Cigno to arrange the loan for you. We know which lenders will consider borrowers with low credit scores, so you’re less likely to have your application rejected.

Step 3: Apply

This step doesn’t vary too much from applying for a regular loan. However, it’s in your best interest to be honest and upfront about your credit score and provide as much evidence as possible showing that your current circumstances won’t lead to any repeats of previous defaults. For example, it may help if you bring recent bank statements that show you successfully paying bills and repaying other loans.

Step 4: Improve Your Credit Score

Paying Off Credit Card - Cigno Loans

You’ve experienced the restrictions a low credit score can place on your access to loans, and you’ve likely paid more interest than you would have with a healthy credit rating. There’s no better time to take a serious look at improving your credit history.

The obvious place to start is by repaying your bad-credit loan promptly and in full. Then you can consider some of these tactics for improving your score:

Lower the limits on your credit cards
Set a direct deposit schedule to ensure all your rent and bills get paid on time
Aim to pay off your credit card in full every month
Consolidate your existing loans/cards into a single loan
Make mortgage and other loan repayments on time.

Taking steps now to bump up your credit score will make it easier in the future to get approved for loans with lower interest rates.

How to Get a Home Loan with Bad Credit

The steps above are all relevant for getting a home loan. However, there’s an extra tip to consider when applying for a mortgage: lenders mortgage insurance (LMI). If you can save up enough of a deposit (usually around 20%), you may not need to worry about LMI. This means you skip the extra step of having a mortgage assessor review your application – and that’s one less person who might reject it.

Home Loan and Car Loan - Cigno Loans

How to Get a Car Loan with Bad Credit

Just like getting a personal loan, successfully applying for a car loan with bad credit involves:

Knowing your rating in advance
Being honest and transparent in your application
Taking steps now to improve your rating
Proving you’ll be able to repay the loan (e.g. with evidence of stable employment and other prompt repayments).

To discuss the short-term finance solutions available to you based on your credit score, feel free to contact our friendly team today.

11Nov2019

Ways To Use Credit Cards To Your Advantage

November 11, 2019

Henry Mabana

bad credit loans, bad credit loans Australia, online loans for bad credit Bad Credit Loans

A credit card can be a valuable tool to pay for things, although this can come at a cost. Dodge costly fees and interest by knowing ways to use your credit card to your advantage.

Stay in control

It’s important to stay in control as you might rack up more debt on your card than you can afford to repay before you know it.

The best way to do this is to keep track of your spending. Check your credit card statement regularly.

Check your credit card statement

Keeping your monthly credit card receipts is the best way to check your statement. This will help you check that you have been charged the right amount for the things you bought and also those you did not buy.

Look for these things when you check your credit card statement:

unusual or large charges
charges by companies you do not recognise
duplicate charges
changes in direct debit amounts

Contact your credit card provider immediately if there are any transactions you didn’t make. They may be able to reverse the transaction.

Pay your credit card on time

When checking your credit card statement, don’t forget the due date of payment. Make sure to pay on time to avoid late payment fees or extra interest charges.

You can set up a direct debit to pay a fixed amount off the balance owing each payday. Make sure these payments cover at least the minimum monthly payment due on the card.

Maximise your credit card repayments

You’ll pay a lot of interest if you only make the minimum repayments on your card each month. It could take years to pay off your credit card debt.

Switch to a card with a lower interest rate if you’re struggling to pay more than the minimum monthly repayment. Pay off more when you can. Make sure to close the old card to avoid more debt.

Set or reduce your credit limit

The credit limit you set should be an amount you can afford — one that won’t tempt you to spend more than you should.

You can also ask your credit provider to reduce your credit limit. You can call, visit a branch, or do it yourself online.

Don’t use credit when you run low on cash

If you’re running low on cash or an unexpected emergency happens, using credit won’t work in the long run. You might get through the immediate crisis but, over time, end up with even more debt.

Bad credit loans in Australia

It’s not impossible to find lenders who will work with you if you have a bad credit.

Cigno is more understanding of your needs and circumstances.

Apply through Cigno today and they will act as your agent to help you with your bad credit loans application.

Take the step by simply completing the online application form. Apply now!

14Aug2019

How To Improve Your Credit Score

August 14, 2019

Henry Mabana

bad credit loans, bad credit loans Australia, online loans for bad credit Bad Credit Loans

A bad credit score can be a hurdle for you to get approved for a loan, as it shows on your credit report. Now, improving your credit score makes a double whop — but it’s doable.

Aside from the usual approach, like on-time bill payments, avoiding multiple loan applications, and cancelling unused credit cards, there are other ways to improve your credit score.

Getting approval is not guaranteed, however, here are some tips to better your score and keep it looking good.

Monitoring

Credit bureaus such as Experian, Equifax, and illion (formerly Dun & Bradstreet) can help you monitor by providing your credit report for free.

Your credit report shows all the positive or negative factors that contribute to your score. It gives you all the information you need that allows you to make it better. You can also fix errors on your credit file, such as discrepancies in your personal details (different address on two accounts).

Under soft pull check, specialist lenders can also evaluate your loan application. This way, lenders can have an overall idea of your financial status and it won’t go on your credit file. Otherwise, this could have a negative effect on your score.

Note: Credit score differs depending on the credit bureau.

How To Improve Your Credit Score

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Keep a consistent home address

It’d be harder for the lender to track you down — which would affect your score negatively, if you change your residence too often.

If you’re planning to make a loan application, you should stay in the same place for a few months.

Consolidation loan

There are financial institutions specialising with consolidation loan. Consolidation could be a better option if you have multiple debts. This way, you only have one loan to worry about.

This helps to boost your credit score as the quicker the principal could be paid off, the quicker you have to deal with the balance. There’s a tax break too!

So, clear those debts and avoid them in the future.

Bad credit loans in Australia

Having bad credit doesn’t have to be a permanent thing. Foreclosures, late payments, and even bankruptcies will fall off your reports after a certain amount of time.

The bottom line is that it’s possible to find lenders who will work with you and your bad credit.

Cigno is more understanding of your needs and circumstances.

Apply through Cigno today and they will act as your agent to help you with your bad credit loans application.

Take the step by simply completing the online application form. Click here to apply!

14Aug2019

Credit Score Myths BUSTED!

August 14, 2019

Henry Mabana

bad credit loans, bad credit loans Australia, loans no credit Bad Credit Loans

Lenders look at your credit score to evaluate the potential risk of loaning you money — or simply put, your creditworthiness.

Rumour has it that the higher your score, the more financially trustworthy you are. Now, this has a probability to be true, but what about the other data we’re not so sure of.

You have to weed through different information if you want to improve your credit score. First, let’s weed out fiction from facts and bust these credit score myths!

Myth 1: If you’re not getting a loan, no need to know or check your credit score

Other than lenders, your utility companies, potential employers, and landlord also check your credit score — although, they have to ask for your consent beforehand.

It’s better to know your credit score for contingency in case you need to get a loan.

There could also be errors and defaults which can be listed unknowingly. Change in residence can be a reason for credit providers to lose track of you and not able to give notification of any outstanding bill.

Check your credit file regularly for discrepancies and fix them at once.

You can also have a better chance at the lowest interest rate by knowing your credit score early on.

Myth 2: There’s an effect if you check it all the time

Checking your own credit report, known as a soft enquiry (informal), doesn’t go on your record and doesn’t affect your score.

It is recommended that you review your credit file often to verify it’s content and fix any errors.

Myth 3: Good income equates good credit score

You have as good a chance at having a good credit score as anybody, whether you have a high salary or otherwise. Same as if you’re on a higher income and still not able to do repayments on time — which very much affects your score.

Credit Score Myths BUSTED!

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Myth 4: Good credit score stays good

Not paying your bills on time and not having credit at all can upset your good credit score.
Having a no credit report doesn’t always work for your loan application advantage. Lenders, based on your credit score, would want to know how you handle your repayments.

Although, after 5 years — 7 in case of a clearout, transactions vanish from your credit file. Bad and (even) good behaviour can disappear from your credit history, so you still have to be careful of getting bad credit.

Myth 5: You can’t get a loan if you have bad credit

The good news is there’s still a type of loan designed for those with bad credit.

With bad credit loans, the lender will assess your income and expenses to decide how much you can borrow — without credit checks.

Bad credit loans in Australia

In need of a financial boost this month — but you have a bad credit or no credit history at all?

You can find yourself without a substantial credit history for all sorts of reasons.

At Cigno, you can apply online for bad credit loans or loans — no credit via their quick application.

In observance of Responsible Preliminary Assessment, Cigno may ask you for your personal data, which may include:

bank statement
drivers licence
passport Number
proof of age card
birth certificate, etc.

Note: Bank accounts must be in your name and cannot be for online savings accounts or online only accounts.

20May2019

How To Manage Your Centrelink Income?

May 20, 2019

Henry Mabana

bad credit loans, centrelink loans, no credit loans Bad Credit Loans, Centrelink Loans, No Credit Check Loans

Income management

Income Management is a tool to help people in budgeting their welfare payments. It ensures they get the basic essentials like food, shelter, electricity, and education.

Improved control of finances helps people to stabilise their lives so they can better care for themselves and their family. It can also support them to return to or join the workforce.

Accessing your income managed money

You can access your income managed money in many ways:

BasicsCard — Use your BasicsCard at approved businesses to pay for essential household needs and expenses.

BasicsCard

Direct payment — Ask to set up regular or one off payments to stores, landlords, real estate agents, or other service providers.
Self service — There are self service options you can use to access your income managed money.
Call — Call the Income Management line to get help in accessing your income managed money.

Note: You can’t use your income managed money for: alcoholic products, tobacco products, pornography, gambling products and services, homebrew kits or concentrates.

Managing your Centrelink income

The way you use your money will change during your life. While you look for work, there might be changes with your income. Make a plan to have enough money to pay your bills while income is low. Don’t forget about your regular bills as well as other expenses you have.

To help you manage your money, you have to learn to budget, deal with debt, manage loans and credit, and build savings.

If you think you can’t pay your bills on time, talk to the hardship teams at companies, like your utility providers, your bank, or lender you have loan with. They may want to help you with debt repayments depending on your situation.

Settling a loan or cutting back on debt will enable you to manage your money effectively. Having knowledge about credit and borrowing avoids disappointment at the end.

There are things to consider before taking out a loan. Ask yourself:

Do you really need it right now?
Is it safe and affordable?
Can you make the repayments on time?

Check if you can get a no interest or low interest loans from a financial institution.

If you’re Working or on Centrelink, Cigno Loans will consider your loan application. Cigno believes in treating each person with trust and respect and only ask what they need to in order to assess suitability.

How To Manage Your Centrelink Income?

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Cigno offers Centrelink loans for persons who have a low income and on Centrelink payments. You can also apply for bad credit loans or no credit loans if you need cash while on Centrelink.

If you do apply for a loan or credit, always check the terms and conditions. Enquire about your concerns before signing a contract.

15Mar2019

The Possibility To Acquire Payday Loans With A Bad Credit

March 15, 2019

Henry Mabana

Bad Credit Loans, Payday Loans 2

There are times when you need payday loans to get through a financial situation. Taking out a payday loan when you have a bad credit score is possible. We know that trying to acquire a loan with a bad credit can be a challenge, especially when it shows on your credit file. Some lenders can have your loan application under soft search (informal enquiry) which is a better evaluation option because it won’t go on your credit file. Otherwise, this will make your score worst.

Getting approval is not guaranteed. However, there are a few tips you can use for a better chance at bad credit payday loans.

Improve your credit score

Improving your credit score is hard work. A bad credit score can stop you from getting a loan, among others. One of the benefits of having a good credit score is to help you out during emergencies. Here are some tips to better your score and keep it looking good.

Monitoring — Credit bureaus like Experian can help you monitor by providing your credit report for free. Your credit report can show all your direct debits and the positive or negative factors that contribute to your score. It gives you all the information you need, hence, allows you to make it better. *Note: your credit score differs depending on the credit bureau.

Consolidation loan — Sometimes, consolidation is good if you have multiple debts. This way, you just have one loan to worry about. The faster the principal could be paid off, the quicker you have to deal with the balance — his helps to boost your credit score. Aside from improving your score, there’s a tax break too. There are companies willing to give you a consolidation loan. They can really help you out with your debts, but keep in mind to only take one out if really necessary.

Don’t change residence — Changing your residence too much would affect your score negatively because it’d be harder for the lender to track you down. You should stay in the same place for a few months if you plan to make a loan application.

Requirements for Payday Loans

Your latest 3-month bank account statement is a usual requirement. This account is where your salary is directly credited to. If your salary is paid into more than 1 account, you will need to prepare and supply the bank statements separately.

Printouts from online banking may be accepted as long as you can give other supporting details to prove that you are the account holder. The data will help the lender in assessing your payday loan application.

Lenders may also ask for original documents or copies of:

Payslips
Utility bills
Centrelink statements
Other statement of accounts
Other loan contracts
Lease statement showing if your paying your rent on time

Data in your bank account statements, your credit file, and whether you are a first time borrower may indicate the type of documents you will need to submit.

If you already have possible lenders in mind to choose from, make sure to call them up and make enquiries to assess the right one for you.

Find the right lender for your bad credit payday loan

Nowadays, there are many specialist lenders to choose from. You may not know where to look first, but it’s very important to do your research and find the right one that suits your financial situation. Here are the following things to consider:

Do some research — Make sure your specialist lender have a good reputation and dependable because they can access your bank account details and other personal information. Go to the lender’s website to learn about the terms and policies. Do not hesitate to make enquiries on important details.

Consider rates and fees — Expect to have higher interest rates and fees included in the loan with faster access to funds and special features from non-traditional lenders. They can charge up to 24% (monthly fee) of the principal loan amount for a loan less than $2,000, as monitored by The Australian Securities and Investments Commission (ASIC).

Loan extensions — Some specialist lenders can extend your loan term up to 90 days, which may include extra fees. Make sure to enquire about details in the event of a default. Ask about hidden and other extra fees you may need to pay in your loan terms. Try to avoid any extensions if you want to pay off your loan quickly.

Turnaround time — It is wise to look for a lender that can make fast decision and credit the funds directly to your account within a day. Cigno Loans offers products that won’t make you wait for days or weeks. Apply here.

The money from payday loans can be directly credited into your account on the same day. If you’ve made your decision and you want to acquire a bad credit payday loan, make sure to check first before signing the agreement. Learn about the loan terms and what happens when you default.

The Possibility To Acquire Payday Loans With A Bad Credit

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Although lenders can tailor-made it’s services for you, it is better to only get a loan if you are confident that you will make the repayments on time. Use a loan calculator to ensure that you don’t get a loan you cannot afford. Set the loan amount and term to have an idea of how much you are going to repay. Most lenders have their own calculator on their websites.

25Jan2019

Obtain an installment loan with bad credit

Obtain An Instalment Loan With Poor Credit

January 25, 2019

CignoBlog

Bad Credit Loans

Getting a bad credit score marks you as a risk and can be a significant issue, particularly when you are hoping to take out a loan later on. Being a risk will goad the lenders to lessen it by charging you higher interest rates or rejecting your application.

Bad credit loans are intended for individuals with poor credit files and credit histories. They are also offered to first-time buyers and self-employed, who loan specialists view as higher-risk borrowers.

Lenders specialising with bad credit loans usually have a reputation because of high-interest rates associated with it. You can apply for a loan at a bank, however, they have stricter criteria which may result in the application to be rejected. Rejected loan applications can do more harm to your credit rating, which can influence your future loan applications. Missing or defaulting on your loan reimbursements can also harm your credit score.

Here are 5 pointers to remember when taking out a bad credit loan to refrain from hurting your credit score:

Estimate a loan amount you can acquire by using a loan calculator.
Make sure you can afford the repayments by factoring in the loan amount to your weekly budget.
If you have doubts about your repayment capabilities, think twice if a bad credit loan is the best option.
The lender of your choice should be chosen wisely.
Set aside and save some funds to tide you through a crisis, so you can get around defaulting on your loan.

Other loans for borrowers with bad credit:

Secured loans — Using your home or car to secure your loan can enable you to meet all requirements.

Guarantor — Some lenders approve borrowers with bad credit or access to funds that are guaranteed by family or friends. Whether you can’t pay back the loan, it’s the guarantor’s responsibility to take care of the cost.

Payday loans — For smaller loan amounts, some lenders are less worried about your credit history and your finances. Keep in mind that payday loans frequently have substantial fees if your payments are late.

Bad credit rating

Your credit score is assessed through various factors. Outstanding debts or late repayments, previous loan applications, and lenders the type of loans you have applied for are factors to be considered when applying for bad credit loans.

Practices that harm a credit rating are:

Making multiple credit applications at once
Missing payments
Being careless about your bills
Making late payments
Exceeding card limits
Skipping payments

To avoid being black-marked, it is advisable to be responsible for your payments. If you have no credit history (have not applied for a loan previously), it can be considered a bad credit and can cause for a denied application.

Credit Bureau

There are Australians agencies that keep track of borrowers’ history and give credit scores that lenders use to evaluate loan applications. These credit bureaus are:

Get in touch with at least one of the agencies for a copy of your credit history (free copy per year + incurring fees). A free copy can also be requested after denied application in the past 90 days.

Enhancing a bad credit rating:

Pay bills on time
Keep a consistent job and home address
Grow your savings
Clear and avoid debts
Fix errors on your credit file (contact the credit bureau)
Minimise credit applications

Direct debit for bills payment

It’s useful for your credit score when you pay your lease, telephone, web, water, power, and other bills on time. Direct debit can make the procedure less demanding. By setting up an auto-payment system, you don’t need to make payments manually or via phone call.

*Caution: Ensure there are funds in your account to cover the direct debit, in light of the fact that a missed payment will harm your credit score.

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Comprehensive Credit Reporting

The Australian credit system started to report credit history more comprehensively since March 2014. Before, a positive repayment history won’t wash out any extraneous bad credit history. These were all recorded in your credit file.

Nowadays, comprehensive credit reporting casts a more positive perspective of your past record. This has a good effect on individuals with not so perfect score who may have defaulted on a loan, yet made repayments periodically. It is the same with new borrowers without a credit history.

23Jan2019

Tips on what to do when paying off bad credit loans

What To Do After Paying Off Bad Credit Loans?

January 23, 2019

CignoBlog

Bad Credit Loans 1

Does your basic credit instinct tell you to get a loan? How good or bad is your credit score? There are bad credit loans available in the market in case your score turned out low.

Your credit score is an important factor when applying for a loan. It reflects the borrower’s credentials in paying back the funds and the potential risk of default. A good credit score ranges between 800 and 1,200. The credit score system varies depending on the credit bureau (i.e. Equifax, Experian, etc.).

A credit bureau is an agency that collects and researches individual credit information which lenders use to make a decision on granting loans. The borrower may request a free copy of the credit file from credit reporting bodies in Australia.

If there are incorrect information in your credit report, you must inform the corresponding credit bureau at once as this could affect your chances of loan approval.

The information listed below takes into account in your credit score calculation:

Previous credit applications
Previous unpaid loans
Previous loan defaults
Bankruptcy history

You would like your credit score to be at least above average to influence the credit institution’s decision in lending you the funds. Your credit score also affects the loan amount (and interest rates) they will allow you to borrow.

Banks and traditional lenders set criteria and generally won’t give access to funds to people with bad credit scores. Higher interest rates should also be expected with this type of loan since it could be unsecured, where no collateral is involved.

How to be approved for bad credit loans?

No need to be apprehensive if you find out that you have bad credit. What’s more important is the reason why you are getting a bad credit loan. Is it really imperative? Can you afford and pay it back on time and in full?

There are specialist lenders who are considerate and willing to help regardless of low credit scores. Although approval is not guaranteed, there are ways to better your chances for bad credit loans.

Check the eligibility — Lenders set the criteria for eligibility so they are open for calls from borrowers to discuss their financial situation and carve out want they can offer.

Order credit report — You can request your credit report directly from the credit bureaus such as Equifax and Experian. Within 10 days, the agencies are required to give a copy of your credit report. There must be assurance that the credit information is correct, updated, and relevant as these are vital to assess your creditworthiness. The information that can be gathered is personal details, consumer credit information, defaults, public record, and commercial credit information.

Bad credit loan options comparison — Since your applications will show up on the credit file, comparison of your loan options beforehand is advisable. Examine the convenience of application; the ways they credit check; interest rates and fees; and repayment terms.

Improving your credit score

Here are ultra practical ways to improve your credit score for future loan needs:

Debt consolidation — You can take out a new loan to pay off debts and liabilities in debt consolidation. The multiple debts are combined into a single piece of debt for more consumer-friendly payoff terms: lower monthly payment, lower interest rate, or both.

On-time payments — Listed on your credit report is the last 2 years of your repayment history. It’s important to show that you are responsible for your repayments and if you have lates, make sure to pay the succeeding ones on time. This also demonstrates your repayment behaviors with your utility bills such as electricity, internet, and mobile plans.

Stable job — A stable job, hence a steady source of income, proves you can pay back what you owe.

Homeownership and rental — Your capabilities to pay rental and the own a home establish to lenders that you will be accountable and responsible in handling your loans.

Avoid multiple loan applications at once — Whether it’s approved or not, each loan application will be listed on your credit report. Multiple applications are frowned upon and have a negative effect on your credit score. Until your score improves, wait before applying for the next one.

Always see to it that you are in a better financial situation possible to acquire and make the loan repayments. Do not make any commission if you’ve just changed job, changed address, or simply do not have the means to pay off the loan. If you think you can manage a bad credit loan, take the step and apply here.

9Jan2019

Determine What Your Chances Are To Get A Loan

January 9, 2019

CignoBlog

bad bredit, bad credit loans Bad Credit Loans 9

Say you need cash at hand because you are going through a financial emergency. Say you are planning to get a loan but have a bad credit. We know that trying to acquire a loan with bad credit can be a challenge, especially when it shows on your credit file. There are different loan options you can still consider. This is where bad credit loans can be applied.

Can I be approved of bad credit loans?

There is no sure way to get approved. Although there are a few pointers you can use for a better chance at bad credit loans.

You can check where you stand by examining your credit score. The higher the score is, the lesser the risk of defaulting. Your credit score can be checked in your credit report for free by using the national credit reporting bodies (CRBs) / credit bureaus listed on the Australian government website. Information such as loans acquired and applied for, as well as personal information (name, address, etc.) are also detailed in the credit report. *Note: your credit score differs depending on the credit bureau.

Bankruptcy, Part IX debt agreements, and defaults are indicators that will place you in the bad credit category. Lenders can also look at late loan repayments, late bill payments, exceeding credit card limits, and multiple loan applications as warning signs that you have bad credit. How bad your credit depends on the lender so make sure to make some enquiries or call their hotline to find out.

If you have applied for a loan before, you are well aware that multiple applications at once is frowned upon. Lenders view it as a red flag and might cause refusal to accredit future access to funds. If this is the case, wait for a while before making another application.

Use a loan calculator to ensure that you’re not applying for a loan that you can’t afford. Most lenders have their own calculator on their websites, set the loan amount and term to have an idea of how much you are going to repay.

Find the right lender for your bad credit loan

Do your research — Make sure your specialist lender is dependable and have a good reputation because they will access your bank account details, among other personal information. Visit the lender’s website to learn about the terms and policies. Do not hesitate to make enquiries and ask about details you deem important.

Rates and fees — For faster access to funds and special features from non-traditional lenders, expect to have higher interest rates and fees that come with bad credit loans. Lenders can charge up to 24% of the principal loan amount as monthly fee for a loan less than $2,000, as monitored by The Australian Securities and Investments Commission (ASIC).

Turnaround time — Assuming you need the cash urgently, it is better to look for a lender that can make fast decision and credit the the funds directly to your account within 1 to 24 hours. Cigno Loans offers products that won’t make you wait for days or weeks. Check it’s website to learn about your options.

Loan extensions — This may include extra fees, but some specialist lenders can extend your loan term up to 90 days. Make sure to enquire on details in the event of a default. Ask about hidden and extra fees you may need to pay in your loan terms. Try to avoid any extensions if you want to pay off your loan quickly.

Determine what your chances are to get a loan

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Although lenders can tailor-made it’s services to help you, it is wise to only get a loan when you really need them. If you already made a list of possible lenders to choose from, make sure to call them up and make enquiries to assess the right one for you. Remember to apply for a bad credit loan only when you are positive that you will be approved as every application will show up in your credit file.

Read the terms and conditions thoroughly to know the commitment you will lock yourself into. It is also advisable to work towards making your credit score better for future loans.

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