17Jan2020

Ways To Pay Down Your Holiday Debt

January 17, 2020

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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.