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Ways To Solve Your Bad Credit Problem

January 2, 2019
, , 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).

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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.

Cash Loans With No Credit Check – How Do They Work?

October 8, 2018
, Bad Credit Loans, Payday Loans 1

Cash loans can be very helpful in situations where you’re running low on money and need funds fast. In this article, we’re going to explain some of the factors that make cash loans with no credit check so well suited to those in desperate financial circumstances. Heard about payday loans before and want to learn more? Have a look through this overview to see if this might be an appropriate solution for you. We’ll start with:

 

What is a payday loan?

Payday loans are the core solution we focus on at Cigno Loans. These loans are designed to bring customers fast payouts so that they can use the money to address their situations as soon as possible. The funds are paid straight to your account and you are expected to pay back what you owe using your next payment from work.

 

When do people tend to use payday loans?

Payday loans are intended to help you with urgent circumstances. You might have spent too much this month and run out of cash for essentials or an urgent cost might have come up in the form of a housing or vehicle repair. There are loans of reasons someone might consider a payday loan to be their best route. If you need the funds right away and don’t have access to a credit card or people that can loan you the cash you require, a payday loan could be the most practical option for you.    

 

Why don’t these loans require credit checks?

Normal loans require credit checks because the loan term is usually spread over years. Payday loans are meant to be paid back within weeks or months. Because they are short-term, a credit check is not as useful as checking your current income levels. As long as we can see that you are earning a consistent income, we’ll be confident in your ability to pay what you owe.

We never want to see anyone run into debts or money trouble, so we do all we can to ensure the process is handled as responsibly as possible. Once we have assessed your most recent bank statements, we’ll get back to you with an offer that we think fits your situation perfectly.

When your credit score is low, you might struggle to access typical lines of credit like credit cards and overdrafts. Thes types of product usually always involve a credit check. Sometimes applying can even damage your score further if you are refused. You won’t be refused for a payday loan as long as you are in gainful employment and can prove that your next payment from work will be enough to make repayments comfortably.   

 

How much can you get with a payday loan?

At Cigno, we offer loans up to $500 for first time borrowers. This is a sensible amount that should help you get through most cash shortage situations. The worst thing you can do with a payday loan is take more than you need or more than you know you’ll be able to pay back without any problems.

This amount can go up if we can see you have a history of borrowing from us without issues. Make sure everything goes well with your first loan and we’ll be happy to continue helping you when you need a fast injection of urgent cash in future.

Managing your money effectively is hugely important if you want to avoid constantly reaching the limits of your monthly budget. We never advise people to use cash loans with no credit check to buy things they don’t need. Missing payments can seriously impact your credit history as well as land you the kind of penalties most people would expect from all forms of unsecured credit, be it credit cards, overdrafts or payday loans. When you take these financial solutions, you must be sure you have a solid plan to pay back what you owe exactly as agreed in your terms.

That’s it! That is our basic break down of cash loans with no credit check and how they work. Need more advice? Feel free to get in touch with our team if you have any other questions about payday loans and we’ll do our best to provide as much information as we can.  

Cash Loans With No Credit Check – How Do They Work?

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Read more about cash loans with no credit check, or check out our previous blog post: Why So Many People Prefer Loans With No Credit Check