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

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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.

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.

1Jul2019

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

New Rules On Your Payment Summary (Group Certificate)

July 1, 2019

Henry Mabana

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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.

17Jun2019

Emergency Savings! How Much Is Enough - Cigno Loans

Emergency Savings Fund! How Much Is Enough?

June 17, 2019

Henry Mabana

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“Those who prepared for all the emergencies of life beforehand may equip themselves at the expense of joy.” — E. M. Forster

No matter how good things are, it can always go bad. It could be a family emergency, a medical exigency, or a car breakdown. You could weather these storms with an emergency savings fund.

Emergency savings fund

An emergency savings fund is money you’ve set aside to help cover the cost of any unexpected expenses. Accumulating an emergency savings fund can offset some of these expenses so you don’t have to be distressed.

Still, there are a lot of people in Australia who have no savings to fall back on.

People may have saved for at least a month’s expenses. But is this enough?

How much should you have?

Depending on certain situations, you’d obviously want to save up between 3 and 6 months’ worth of expenses, at the very least. By estimation, this is how long it takes for people to find a new job. It’s just wise to have some cash set aside during this time to pay for food, utility bills, and rent, among others.

At this point, you may have ballparked how much you spend within a 3-6 month period. This is how much you should have in your emergency savings fund and then some.

Budgeting and savings apps such as Goodbudget can help to track your spending effectively.

Goodbudget is based on the envelope budgeting method. It’s an expense tracker and money manager that’s great for home budget planning.

Goodbudget app

Starting an emergency savings fund

You can now start an emergency savings fund. Follow these tips in setting up this goal:

look for a high-interest savings account
set up automatic transfers
create a cash buffer (optional)

Look for a high-interest savings account

A high-interest savings account is one of the best places to put your emergency savings fund.

A high interest savings account is an account that offers a competitive interest rate. Although it is similar to a bank account, it’s designed to help you save money rather than spend it. The compound interest is calculated daily and paid monthly.

Note: ‘High’ is around 3.00% p.a. in interest.

Emergency Savings Fund! How Much Is Enough?

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Set up automatic transfers

Once you’ve set up your high-interest savings account, you can either deposit a lump sum (months’ worth of living expenses) or slowly build up to this amount through automatic transfers. You can also deposit a smaller lump sum, $1,000 or so, to your emergency savings fund to give it a headstart.

Create a cash buffer

This is optional, but can be used for smaller emergencies like replacing a laptop. Small amounts of cash ($5 a week) could be a lifesaver in a situation where you can’t access the money in your bank account.

Emergency loans from Cigno

Do you require a fast and small money credit during an emergency as you’re fund wouldn’t suffice?

In this case, Cigno Loans act as a helper, with an easy application process — as well as management of emergency loans or bad credit loans, if you have a less than stellar credit history.

Once endorsed, cash is moved into your bank account with repayments easily arranged.

Note: You’ll thank yourself in the future for starting an emergency savings fund. Just be mindful where to use it — for emergencies.

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.

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

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 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.

2Jan2019

Ways To Solve Your Bad Credit Problem

January 2, 2019

CignoBlog

bad credit, bad credit loans, no credit check Bad Credit Loans 1

When you have a bad credit history generally you are not qualified for a loan from banks or traditional lenders. Not many know, but there are bad credit loan alternatives available and they are very accessible. You’ll simply need to demonstrate that you can repay the loan by giving proof of a regular income, whether it comes from your employment or Centrelink.

What bad credit loans are like?

Bad credit loans are similar to standard personal loans, except for their fee and interest rate structure. Bad credit loans are more expensive because the companies run a higher risk of lending to those with bad credit histories. The good news is that these companies give everyone a fair chance to be considered for a loan.

Want to see if you qualify for bad credit loans? Get more information here.

Do I have bad credit?

If you have things such as bankruptcies on your credit file, you can assume that you have bad credit — The degrees of bad credit vary. Another way to see if you have bad credit is to have a look at your credit report and credit score.

Also be mindful of what can cause bad credit and try to avoid it, click here for more tips. Your credit score is also a good indication of your chance of approval. Consider a credit score that ranges between 0 and 1,000. If your credit score is 800-1000, it is excellent. If it’s 0-549, it is weak and below average. The lower your credit score, the more likely it is that you have bad credit.

Be careful with excessive credit applications in a short period of time, as this can cause you to fall into the bad credit category — be informed when it comes to credit card use.

Bad credit loans and the chances of approval

There is no absolute way to guarantee you will get approved for a quick cash loan. Keep these pointers in mind, when your credit history isn’t perfect and you’re considering to get a loan:

Check your eligibility — Lenders have set eligibility criteria which the borrower needs to meet. Make sure to visit the lender’s website or call them to learn if you meet their criteria and to discuss your situation. The following criteria are the most common eligibility requirements: an Australian citizen or permanent resident; at least 18 years old; has a regular income through employment or Centrelink benefits.

Get a free copy of your credit file — Your credit file is your financial history record, this is what the lender will evaluate to estimate your creditworthiness. Credit reporting agencies in Australia can provide you a copy of your credit file.

Compare bad credit loan options — Make sure you compare your options before you apply for a loan to minimise the number of applications you make. This is helpful and a good practice because every application you make shows up on your credit file.

Factors to consider when comparing bad credit loans

Before you resort to this form of borrowing, let’s look at some things to keep in mind when applying for a loan with bad credit.

Online application — You can save time with the convenience of applying online. It is also much easier to compare a range of credit providers online which will help you make the best choice. If you are interested in getting a loan go to Cigno Loans and simply fill in their easy application form.

Minimal to no credit checks — It is common practice for lenders to do a credit check. It’s a challenge to be approved for a personal loan from most credit providers when you have a bad credit history. You might want to consider a no credit check loan if you have credit problems.

Repayment terms — Most lenders will give borrowers different options on how to make their loan repayments. The most common way is through direct debit, which can be set up and broken down to eliminate the time spent making monthly payments. There is also robust security technology in place to increase the borrower’s confidence in the automated process.

Fees and interest rates — Although you can expect higher fees and interest rates due to the risk of these type of loan, rest assured that the fees are capped by The Australian Securities and Investments Commission (ASIC).

Don’t fret, you are not stuck with a bad credit

You should know that having bad credit doesn’t have to be a permanent thing. Late payments, foreclosures, and even bankruptcies will fall off your reports after a certain amount of time. This means that even if you file for bankruptcy, it’s still possible for you to work toward better credit.

The bottom line is it’s still possible to find lenders who will work with you and your bad credit. Just work towards improving your credit score and learn to handle your finances responsibly.

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