2Jan2020

How to Get a Loan with Bad Credit

January 2, 2020

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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.

2Oct2019

Is Your Mechanic Ripping You Off?

October 2, 2019

Henry Mabana

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It has become common that unexpected extras added to your vehicle repair or service bills that you’d wonder if your mechanic is ripping you off.

Mechanics, officially called automotive service technicians, are often the “defendant” of complaints from customers who believe they’ve been overcharged or received subpar service.

A few pointers can help when dealing with a mechanic.

Don’t be scared of your mechanic

When he seriously throw you a line like, “It’s dangerous to drive away with your car in this condition.” You ask your mechanic why.

Make sure that the repair is completely necessary. They could be pressuring you to agree to an expensive service on the spot.

Shop around

If in doubt on a diagnosis for a repair, do the same thing – shop around for a second opinion and for the prices of the repairs. A third or fourth opinion wouldn’t hurt, either.

You could save hundreds, even thousands of dollars off your final bill with a bit of phone calls and enquiries to other mechanics.

Search online for forums and recommendations. You’ll definitely come across a similar situation to yours that could be valuable information.

Help to identify the problem

Identify when the problem started for a specific matter. Say, you hear a grinding noise when you turn. Does it happen when turning left or right? Or at certain speeds, or when going uphill, downhill?

This can ensure the problem gets solved as mechanics have a limited time to test your car before repairs.

Don’t skimp on cheap parts

You may be given cheaper options, but these will doesn’t match the capability of the original items. Cheap parts can easily cause an accident.

Schedule your service items

Your owner’s manual provides a list of routine service items against each service interval. Read the list beforehand and check for any surprise extras on the invoice as soon as you get it. Your mechanic should be able to explain and answer any question on the invoice.

There’s fine print on capped servicing

Many brands are starting to offer fixed-price or capped servicing. Read the fine print as these plans vary coverage and duration. Some will cover a fixed number of services, while others will cover the duration of your new-car warranty. There’s also capped-price servicers ‘upselling’ extras like higher grades of oil, adding to the final bill.

Some workshops are qualified to service your car without affecting your warranty. Ask for written proof they’re qualified to do a warranty-safe service.

No credit loans in Australia

Short on cash this month or in need of a financial boost — but you have a bad credit history 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 loans — no credit via their quick application.

Cigno is a responsible lender and may ask you for other personal identification to ensure that you qualify. This may include:

Passport Number
Drivers Licence
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.

1Jul2019

New Rules About Your Payment Summary (Group Certificate) - Cigno Loans

New Rules On Your Payment Summary (Group Certificate)

July 1, 2019

Henry Mabana

bad credit loans, loans no credit, loans no credit online, no credit loans Australia No Credit Check Loans

Employers have to give employees a summary of their income for the past year at the end of each financial year (EOFY). This is ‘payment summary’, also known as ‘group certificate’ or ‘pay as you go (PAYG) payment summary’.

Payment summaries are required by the Australian Taxation Office (ATO) for record-keeping.

Currently, payment summaries are required to be issued to employees by 14 July — covering earnings in the previous year to 30 June.

The employer should lodge the information with the Tax Office, which allows the release of electronic information to myTax for taxpayers who lodge their own tax return online.

Those without a tax agent have to lodge their tax returns on or before the 31 October. Otherwise, most registered tax agents have a special lodgment program and can lodge returns for their clients after the usual October 31 deadline.

Part-year payment summaries

Employee leaving before the end of the financial year (30 June) may request a part-year payment summary be issued before the deadline (14 July).

The request must be in writing and made before 9 June, 21 days before the EOFY.

Employer has to provide the payment summary within 14 days, unless the employee has received a reportable fringe benefit — calculated at the end of the fringe benefits tax (FBT) year (31 March).

New rules on payment summaries

The way you get your payment summary is changing. Depending on how your employer reports your income, tax, and super information to ATO, you will be provided with either:

Income statement — if employers report their employees’ income, tax, and super information through Single Touch Payroll (STP), they are no longer required to give payment summaries to employees. This information will be made available through ATO online services via myGov and finalised by 31 July.
Payment summary — employers will continue to provide payment summaries by 14 July if they haven’t adopted the STP reporting system yet.

Chase up your employer if you haven’t received your payment summary by the due date, as advised by the Tax Office.

New Rules On Your Payment Summary (Group Certificate)

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Single Touch Payroll

Single Touch Payroll works by sending tax and super information from the accounting or payroll software to the ATO. STP reporting is currently available through accounting, payroll, and business management software. STP-enabled products are now offered by most software providers.

Most employers are now required to report your income, tax, and super information directly to ATO each payday via STP — which will phase out payment summaries.

STP applies to employers who have:

at least 20 employees (required to adopt from 1 July 2018)
19 or less employees (required to adopt from 1 July 2019).

All employers will eventually adopt the STP reporting system, so all your relevant information can be found in one place. Tax agents will also have online access to this information.

No credit loans in Australia

Short on cash this month or in need of a financial boost — but you have a bad credit history 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 loans — no credit or bad credit loans via their quick application.

Cigno is a responsible lender and may ask you for other personal identification to ensure that you qualify. This may include:

Passport Number
Drivers Licence
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

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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.