How to get a loan with bad credit

Not having a credit history or having a bad credit are not absolute contraindications for you to get a loan. Thanks to the cash surplus of the Australian financial institution and the strength of our economy, getting a loan with bad credit is easier than you could imagine. There are many ways how you can increase your odd to get it approved and get it with the competitive interest rate.

Apply for a secured loan

Offering collateral for your loan not only will exponentially increase your probabilities to get it approved but also will get you some of the lowest interest rates of the market. There are hundreds of financial products for you to choose. Consider offering a real estate equity or your car title to secure your loan.  Lender and the financial institution will give you a loan faster when they have a guarantee you will not default it, on the other hand, they have an asset for them to back your loan.

 

Find a guarantor or a cosigner

          If you do not want to offer a collateral or put a lien on your car title, you can ask your partner, a relative, or a friend to be your cosigner and be the guarantor of your loan application. When you have a cosigner, you can borrow his good credit history and get a loan faster and with better interest rate than by your own. Applying for a loan with a cosigner make stronger your application and decrease your risk to be in default.

 

Get a loan for a credit union

Being a credit union member will give you access to excellent financial products, with lower interest rate than the commercial banks, since most credit unions are a nonprofit organization and their primary social function is to give the financial option at a lower cost to its member and the community where it is located.

 

Get a peer to peer loan

          Getting and an online loan from a peer to peer platform is easy. This type of loans does not need paperwork or a cosigner. It is an unsecured loan for with the general prerequisite is to have a job, and if the amount of money that you are asking is not big, sometimes only with your driver licenses and your credit information is enough to apply for it and get it approved in just hours.  

 

Sources:

http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/11386775/Five-easy-ways-to-wreck-your-credit-history.html

http://www.telegraph.co.uk/personal-banking/mortgages/equity-release-much-can-borrow-will-cost/

 

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