Category Archives: Loans

The Top Things to Consider When Borrowing Money

At certain times, you may not be able to make ends meet, or unseen circumstances cause a situation in which quick money is needed. Or, you just simply may need money in order to make a large purchase which you have been planning. The truth is, there are times in everyone’s life when the need to borrow money might arise. Knowing how to properly borrow money and exactly what to take into consideration when doing so can often be the difference between upsetting the lender or being able to repay the loan with ease. Whether you’re looking for car loans Perth, are considering taking out a loan to pay off existing debts, need to borrow money in order to start your own business, or simply want a credit card to help with everyday expenses, there...

What is meant by “Bad Credit OK”?

We have all see the adds from non-conforming lenders promising to help you where others have failed. They are not put off by bad credit or lack of financials. Does this mean that a person who has been refused everywhere can qualfy? Probably not. Who are bad credit lenders? Bad Credit Lenders are lenders who specialise in offering loans to borrowers who fall outside the traditional lender criteria. Traditional lenders like the banks will not consider borrowers with a blemished credit history. The key word in this sentence is "history".  Borrowers are often confused into thinking that Bad Credit Ok means a borrower with current unpaid bad credit can be assisted by a bad credit lender. Generally this is not true. Bad credit history may not be an issue, but your bad credit must be in the...

Debt management for bad credit borrowers

Borrowers with a history of bad credit all too often think of a personal loan also known as a debt consolidation loan in order to refinance some of their high interest debt so as to make loan repayments more affordable. At face value this seems to be a reasonable strategy. Unfortunately where it falls down is in the belief that there are lenders out there who would be prepared to refinance existing debts of a bad credit borrower to a lower rate facility. Unless you are in a position to offer the lender some real estate security this outcome is highly unlikely. Not only is it next to imposssible to qualify for a sizable unsecured loan if you have some bad credit, but also you can forget about finding a cheap lender who is prepared to...

The myth of bad credit personal loans

Everyone seems to be offering bad credit personal loans over the internet. It is no wonder that when potential borrowers contact us and find out that they are unable to qualify for an unsecured pesonal loan they are both confused and disappointed. So why is it so difficult to find a lender prepared to offer a traditional unsecured personal loan to a bad credit borrower? Well these products being unsecured are a much higher risk loan to the lender. Why would they consider offering unsecured finance to an individual who has in the past not paid all their debts as they fell due? Lenders take little notice of the resons behind your defaults. It is a simple case of mathematical analysis. Borrowes who have defaulted before are more likely to do so again than their counterparts...

How much deposit is required for a home loan?

Recent media reports suggest that one of the greatest difficulties experienced by first home buyers in trying to break into property ownership is saving up a sufficient daving a home deposit has never been easy. Given the high property prices and high costs of living it can be even more challenging today. Low deposit home loans are available through many lenders. These are home loans that borrowers can gain access to with only 5% deposit. If your first purchase is priced at $350,000 - the minimum deposit with a low deposit mortgage would have to be at least $17,500. When I hear home buyers complaining of how difficult this is to achieve, I think back to 30 years ago when I bought my first property for just over $60,000. I needed to come up with a deposit...

Millions of Aussies drowning in debt

Veda Advantage, one of the largest credit reporting agencies in Australia, has come out with some frightening statistics. Since the introduction of comprehensive credit reporting earlier this year, the agency is attaching a credit score to every Austraian's credit behavor. It seems that the news is very bad for at least 2 million Autralians who have a 50% chance of defaulting on their current credit commitments. That means that as many as 13% of us are significantly over-extended when it comes to debt. A small financial hick-up could be sufficient to tip someone who is already carrying too much debt over the edge. How to read your credit score Credit report format and information collected on it have changed in March of this year. If you have not seen your credit report since then, it is a...

What is your credit score?

Credit score is a fairly new concept to Ausralians. Many of us are aware that as consumers we have a credit file which maintains details of our credit activity. This is where any evidence of a credit default, a judgement or a bankruptcy would be recorded and would affect your ability to qualify for finance. However we were never used to having a single number - a credit score, sum up our credit worthiness. It used to be that you had to be careful not only about makig loan  payments on time but also about excessive applications for credit as these were able to adversely affect your credit rating despite all payments being in order. Since we have moved to comprehensive credit reporting earlier this year, there appears to be more use and awareness of...

How does bad credit debt consolidation work?

Bad credit debt consolidation offers a number of alternatives to the individual ( you can see also Consolidation Deal ), not all of which necessarly involve applying for a new loan. Your ability to qualify for a consolidation loan will largely depend on the extent of your bad credit, available security/assets, your income and nature of your bad credit. For example individuals who are in bankruptcy of in a debt agreement have very limitted options when it comes to debt consolidation, that is because a debt agreement and or a bankruptcy is never your first debt consolidation choice. However having selected them, your ability to avail yourself of further debt consolidation assstance is significantly reduced. Before you consider a debt agreement or a bankruptcy it is worth trying one of these debt solutions: Informal debt negotiation A...

Dealing with bad credit fallout

Bad credit can have significant impact on the opportunities available to you both in the workforce as well as in finance and housing. That is not to say that all is lost if you have some credit history roblems. There are strategies that you could employ to address the impact of bad credit in your day to day life. Qualifying for finance Bad credit will put you outside of the lending criteria of all mainstream lenders. That does not mean that no one will lend you, but it does mean that your loan may be smaller than you expected, for a shorter period of time and most likely more expensive than the prevalent cost of bank finance. With finance applications you may try to gain loan approval by offering the lender the security of an income guarantor or...

Is lending to help a family member a good idea?

This question tends to come up regularly. Siblings or parents come to the rescue of their family member when they hit financial difficulties or unable to borrow. While at face value this is a very noble thing to do, after all who else would help if not you, financial assistance can backfire if not handled correctly. Treat all assistance as a 'gift' The best advise that we can offer is do not expect to recieve your money back - if you do then this is a bonus. Unfortunately all too often a helping hand in time of need sometimes turns to a long family feud when borrowed moneys are not repaid. Therefore you treat your assistance as a gift and only lend what you can affod to lose, there will be less chance of a long term...