So-called Bad Credit Loans have been sitting under a grey cloud for some time now. Why should it be this way ? What’s all the fuss about?
Need some fast finance? We're here to help.
WARNING: Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, call 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
- If you are on government benefits, ask if you can receive an advance from Centrelink: www.humanservices.gov.au/advancepayments
The Australian Government’s MoneySmart website shows you how small amount loans work and suggests other options that may help you.
*This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009
To be eligible for a Nifty loan you must:
- receive a regular income which is paid into your bank account for at least 3 months;
- receive at least $400 per week or $800 per fortnight from an employer or Centrelink;
- you must not have received a Centrelink Emergency payment within the last 3 months;
- not be in financial hardship, dealing with a financial councillor or be considering entering any form of bankruptcy;
- you must show evidence of being able to handle financial commitments on your bank statements (regular payments, direct debits, etc.).
Clearly ‘Bad Credit’ loans are considered bad because the big banks, certain Government bodies and public opinion-makers say they’re bad. So, that must be right (LOL)! As per normal though, these few thousand people who are anti Bad Credit Loans aren’t paying any attention to the 988,000 people who relied on these cash loans in Australia over 2014-2015. At the end of the day, who would you believe? The stigma-makers or the genuine Aussie battlers? Who knows best?
Some people are not given access to mainstream lenders. Something has happened in their lives which has led to a slur on their credit file when a lender does a credit check. A Telco bill could not be paid because they lost their job and needed a few months breathing space – usually something small like that – will result in a default listing on their credit history. Then the banks don’t want to know you. Mind you, if you only want to borrow a small amount like say $500, they don’t want your business anyway – it’s too small and trivial.
Did the big banks knock you back?
The bank makes it impossible for you to deal with them if you have what they perceive to have a ‘bad’ credit file. So, you’d think they would love small bad credit loans lenders who will deal with you. But, they don’t! They want nobody to give you bad credit loans because in their estimation, you’re not worth the risk! Nifty Personal Loans disagrees wholeheartedly!
The stigma around small amount lenders is all about their charges. The perception instigated by those banks and Govt bodies and other opinion-makers is that small amount lenders charge horrendous fees and interest – they prey on vulnerable groups like Centrelink Pensioners and other ‘lower’ social groups. How condescending is that?! The truth of the matter is that small amount lenders have more legislation and red-tape to comply with than the banks.
What will a short term bad credit loans cost you?
That the small amount personal credit industry is still alive despite all that is what is irritating to the said anti-lobby. The National Consumer Credit Protection Act limits the fees that can be charged on a cash advance loan (20% establishment fee and 4% monthly fee thereafter). If you borrow $100 from a small amount lender and pay it back within a month, the maximum you can be charged is $24 in fees. The detractors work that out in percentage terms and compare it with a 30-year mortgage and then say the $24 is a rip-off.
Applications for any small amount loan is treated on its merit and processed in exactly the same way at Nifty Personal Loans. That process includes automated computer analysis coupled with the human element and that’s what gives us the edge. We won’t simply decline an application from someone with a default listing on their credit history – we’ll look a bit deeper. We’ll understand that a small telco or utility default does not automatically mean you are a poor credit risk. To us, it’s not a Bad Credit Loans at all. Of course, that does not mean we will approve all and any loan application we receive! It just means we are not judging you adversely purely because of your credit history.
The whole point of small amount loans is that they are there as a safety net for you if a sudden expense catches you short.
Can I get a bad credit personal loan on Centrelink?
There’s a whole phobia around Centrelinkers who are really living on the breadline and are not able to save for those rainy-day occurrences – those unexpected bills. The banks and Govt bodies and opinion-makers say that if you cannot save up for the unanticipated, then there is something wrong with you. That you shouldn’t be given credit by anyone. You are not deserving. How patronising is that ?! Nifty says you deserve to be treated with respect and dignity like everyone else in society.
The fact is that 16.9% of Australia’s population are partially or fully excluded from obtaining credit through a ‘traditional’ (read as ‘mainstream’) lender. It’s fair to say that if the consumer watchdogs spent more time focusing on the bigger lenders they too would cop more negativity in the public eye through the media.
It’s time the black-mark hanged from the necks of small amount lenders be removed and brownie points given where they’re due.
Nifty values your custom.
If you need a loan of small amount, we finance Bad Credit Personal Loans with affordable repayments structured over a tailor-made term, we are here for you.
Here’s how our fast personal loans work
Loan Amounts: Minimum $50 to Maximum $1,000.
Costs: Up to 20% Establishment Fee charged upfront plus a monthly fee up to 3%. Under the current legislation Nifty Personal Loans does not charge an annual interest rate. You may know this as Annual Percentage Rate or APR(%).
Terms: Minimum 9 weeks to Maximum 24 weeks.
Example: Loan Amount of $500 over 10 weeks repayable weekly $500 (Principle Amount)+ $100 (20% Establishment Fee) + $45 (fees based on 3% per month over 10 weeks) = $645 total repayable in 10 weekly installments of $64.50.
How customers rate Nifty’s Bad Credit Loans