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?
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.).
Bad credit loans
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 $400, 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 the borrower 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.
How do you know if you have a bad credit rating?
Before you consider applying for bad credit personal loans, it’s worth checking that credit score is, in fact, bad.
If you’ve noticed an increase in calls from debt agencies, or know that you have unpaid or overdue bills or credit card defaults, and have received official notices of them, you could have a bad credit rating.
If you’re not sure if you have a bad credit rating, it is best to find out through an official service like:
Equifax, Canstar, Creditsavvy, Get credit score
What is a bad credit loan?
When you’re faced with an unexpected bill, emergency expense or unforeseen cash flow problem, bad credit is the last thing you need to deal with. A bad credit loan is a personal loan of $400 or less that requires no credit checks.
What are the causes of bad credit?
There are a few things that can contribute to a bad credit rating. If you suspect that you may have a bad credit score, see if you can find the source of the default listed on your rating so you can work towards paying it off and improving your score.
Making payments late or not at all will be recorded. Things like credit cards, utility bills, store accounts and other loans count here.
Showing that you have no intention of paying your balances is a serious offence. It’s always a good idea to try to be honest with your creditors and see if there is a change you could come up with a payment plan or arrangement. While an unpaid judgement is worse than a paid one, a paid judgement is still bad as you would have been forced to pay your debt by a court.
Filing for bankruptcy or foreclosure are perhaps the most damaging to any credit score. Although they’re often the last resort for people in financial turmoil, they do stay on your record for a long time.
It’s good to know that you can still get small loans with bad credit. Just make sure you meet the minimum requirements and, even if it’s personal loans for people on Centrelink with bad credit that you’re after, you could get your cash loan quickly.
You are at least 18 years of age.
You are an Australian Citizen or Permanent Resident.
You must have a personal contact number.
How can I borrow money with bad credit?
An unexpected answer to some, but a simple one, nonetheless. Cash loans for bad credit.
Small loans with bad credit are quick and painless to apply for. Fill in this form and you’ll find out in just one hour if you qualify for a bad credit personal loan. How? We don’t do a credit check on amounts less than $400 and, as a responsible lender, always do a proper assessment of your situation to make sure that you can comfortably afford to make your loan repayments. Find out if you qualify for a bad credit loan here.
How long does information stay on my credit report?
If you’re trying to find out how long defaults stay on your record, you’ll want to work on around 6-7 years from the date of the first missed payment. In Australia, minor infringements stay on your record for around 5 years and bankruptcies can stay on your record for around 10 years, with the accounts that were a part of the bankruptcy remaining on your record for about 7 years.
If you can provide evidence of having the defaults listed on your account as a mistake, or show that insufficient effort went into contacting you or sending your notices to you, you may be able to have defaults removed from our record.
It would be a good idea to work with a debt consolidation or credit repair firm to rectify your credit score.
How can I improve my credit score (fast)?
While you’ll likely be able to get small loans with bad credit, it’s a good idea to work on improving your credit score as soon as possible so that, down the line, you can look at loaning more if you need it. Bad times shouldn’t last forever, and neither should bad credit.
The first step is to know your credit score. There are several companies that can help you find out exactly what your score is and where you’ve defaulted.
Once you know where you’ve defaulted, see if you can find a way to catch up on your payments. You could come up with a payment plan with the creditor, or offer to pay it off slowly in a few payments. While defaults will stay on your credit history for a long time, it’s still better to have the word ‘paid’ next to them.
Make sure that, from here on out, you pay your bills on time. If you’re serious about fixing your credit rating, you’ll have to make sacrifices. Take a hard look at your current expenses and see what you can cut out. It’ll be hard, but so worth it in the long run.
Although it may sound contradictory, see if you can avoid closing credit card accounts. It’s important to have a long credit history so pay it up, and use it sparingly. Funny that something that could be the root of the problem could be the answer to improving your score, isn’t it?
Unsecured personal loans bad credit instant decision
It’ll take just 60 minutes for us to review your application and you an answer. While there are no guaranteed approval loans for bad credit applications, we’re all about giving you the fair shot you need. For bad credit cash loans under $400, we won’t do a credit check. Meet the requirements? Apply now and you could get your loans with bad credit loaded up fast enough to have your money in your account in the same day. Don’t believe us? Apply now to find out for yourself. There’s no cost for applying, and no obligation to accept the loan.
HERE'S HOW OUR SMALL PERSONAL LOANS WORK
HERE'S HOW OUR MEDIUM PERSONAL LOANS WORK (Product launch in late 2017)
How customers rate Nifty’s Bad Credit Loans