What you need to know in short that unsecured personal loans are not available to applicants with bad credit. They are not available at all, no matter who says that they can help you get one – there is simply nothing like this available in Australia.
You may be able to get a secured personal loan, or a short term cash loan.
Some lenders are able to assist applicants with a history of bad credit with a secured personal loan. In majority of cases the security used is the applicants motor vehicle. It is important to understand that with bad credit secured personal loans you will be:
- paying a very high interest rate (25%-50% p.a.);
- borrowing no more than 50% of the value of your car;
- some cars may not be acceptable security;
- paying high application / set up fees.
This is a very expensive way to borrow and is best to avoid.
Some lenders are able to offer ‘no credit check’ cash loans or bad credit cash loans. However it is important to under stand that what you are getting is a small loan repayable in a few weeks from date of funding. It is not a personal loan as such, rather a cash advance on your salary.