Low Credit Score Loans - Fix Your Credit Rating & Get a Loan
Why quick loans for bad credit are not your best solution
A poor credit rating is not a dead end. Sure, it is undoubtedly a speed bump, but we’re here to help you understand how to get a loan successfully, get to the bottom of the problem and fix bad credit.
In this article, we share a basic understanding of poor credit and how it works, steps to clear any black marks, and why cleaning up your credit is better than turning a blind eye and trying to get poor credit loans.
What is a poor credit rating and why does it matter?
In Australia, a poor credit rating is typically 550 and below.
Credit reporting agencies use credit scoring models to determine the risk in lending you money. They reach this figure by assessing whether or not you have made past debt repayments on time, the levels of debt against your name, defaults, the number of hard credit enquiries, bankruptcy and other factors.
The lower the figure, the lower your chances of successfully applying for a loan. Your rating is important for future borrowing, like getting a mortgage, buying a car, or starting a business. Your application may be rejected, and you may have to turn to a bad credit loan.
How to get a loan with bad credit
If you do have a bad credit score, all hope is not lost. You can get assistance from professional credit repair specialists, such as Real Credit Repairers, to help you ‘credit wash’ and get back on track.
1. Fix poor credit first
Rather than consider how to get loans with a bad credit history, we recommend fixing the problem at the root. Why? Because wiping the slate clean will free you up in many ways and make your future financial siutation a lot easier. If you can fix this and you choose not to, it’s akin to hitting your head against a proverbial brick wall. This problem won’t go away - it will just keep returning to cause you angst, delays and make your path that much harder.
That’s where the Real Credit Repairers team comes in. Experts in our field, we specialise in helping clients clear their poor credit record. We know the people, processes and protocols involved in successfully negotiating on your behalf. We know what to say and how hard to push. And if we’re not successful, we don’t charge, so it’s a win-win service.
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2. Access your credit file history
You can freely access your credit score and make soft enquiries (which are very different from hard enquiries - more on that below).
By pulling your complete credit report, you see what a lender would see if they were to run the same check. This is strongly recommended, as it allows you to review your credit behaviour and potentially flag any errors or misnomers (which Real Credit Repairers can argue on your behalf).
3. Take time to compare credit lenders
If you don’t try to clean your credit score, you risk minimising your options and only being eligible for bad credit loans. What’s so bad about that? Someone’s willing to give you money despite you being rated a high risk. Isn’t that a good thing?
In theory, yes. However, in practice, loans for poor credit can have drawbacks. For instance, interest rates might be much higher than standard, and terms and conditions could be less reasonable.
Whether you try to fix your credit rating or hedge your bets and apply for poor credit loans, our advice is the same: Spend time shopping the market and keep a keen eye on the fine print.
It is imperative at this point to refrain from triggering any hard credit enquiries. If your general enquiry becomes a formal loan application during this phase, the lender will make an enquiry in your credit report. Too many enquiries such as these will suggest a poor credit score, and you could be back to square one. The last thing you want is to ‘play the field’ and reach out to several potential lenders, resulting in them each making a hard enquiry.
4. Crunch the numbers and calculate monthly repayments
Once you have all the rates and details, try to work out the calculations.
Australia-wide financial planners and lending institutions typically feature personal loan calculators on their sites. You can use these to manipulate loan amounts, terms and rates. Seeing how these factors influence your monthly repayments can be a huge eye-opener, providing a very objective awareness of how to repay your loan realistically.
It is important only to borrow what you can realistically and comfortably afford to pay back. Otherwise, you could well default on repayments and end up with a black mark on your credit rating (therefore returning you to this original problem).
Real Credit Repairers can help deal with loans for bad credit
Successfully applying for bad credit loans in Australia is possible.
However, it’s far more effective - and helpful to your long-term financial stability - to try and fix the problem at its root.
Our experts can help you improve your credit score and develop positive strategies to avoid bad credit in the future. We negotiate on your behalf, but we also empower you with useful ideas and knowledge to take control of your finances in the future.
Rather than simply fixing the problem, we want to help you avoid it happening again. Reach out to us today for a no-obligation, no-cost call and see how we can assist you to get a loan and clean up your credit score for any future borrowing.
