Let’s be real: having a bad credit history is not that uncommon. We all rely on some sort of credit, and there’s just a lot of factors that can influence credit scores. Considering these, it can be easy to end up with a less-than-perfect credit rating.
The bright side is that having a bad credit rating isn’t the end of it all for you. You can turn to bad credit loans in Australia for your financial emergencies. These loans are particularly designed for people with a poor credit record or those who have little or no credit history.
However, bad credit loans have received their fair share of misconceptions over the years because of the negative concepts related to it. These are what we will be talking about and debunking in the sections below:
1. “I Can Only Get a Home Loan With a Good Credit History”
During the Global Financial Crisis, banks were struggling to survive. It was also during this time when getting a bad credit loan was especially difficult.
Fortunately, things are much better today. When you need to get a home loan, you can easily get bad credit loans regardless of your credit history or collateral. This is mainly because there are many lenders who now provide these services and specialise in this type of loan.
Your credit history may be tainted, but there’s no reason for you to worry as this can be manageable now.
2. “I Should Avoid Bad Credit Loans Because They’re Dangerous”
This misconception has probably emerged from stories of people who took bad credit loans when they know they won’t be able to pay them back. This results in an even poorer credit rating and a tighter situation.
The truth is that they’re not, in any way, more dangerous than any other type of loan. Moreover, you will stay safe if you do your research about your lender and the whole process. Lastly, bad credit loans can be your last hope in turning the situation around when you’re facing an impending bankruptcy or default on your previous loan.
3. “Bad Credit Loans are Only for Defaulting or Declaring Bankruptcy”
It is true that bad credit loans help those who have defaulted on their loans or who have undergone bankruptcy. However, they can also be used as a means to sort out your credit record and rebuild yourself.
Consolidating your current loans with bad credit loans may actually help you get back on track. You may have to deal with interest rates that are a bit higher at first, but this will eventually aid you in your financial situation.
4. “Paying a Higher Loan Rate for 30 Years Will Make Me Suffer”
This is far from the truth as bad credit loans are meant to be a smart solution to consolidate debts. With this loan, you will be able to pay the loan faster. You will also get a regular loan with a lower interest rate once you’ve settled the defaults on your record.
5. “Lenders Won’t Understand My Story”
A lot of borrowers have the common misconception that lenders are only interested in the money and not their story. The truth is that licensed and professional private lenders may be able to come up with a solution for you when you share why you have ended up in your current situation.
Whether it is an illness requiring expensive treatment, a separation, or a job loss, sharing your story gives private lenders better ideas on how to help you.
Bad credit loans are often needed by people undergoing a particularly unpleasant financial situation. However, this does not necessarily mean that they are all doom and gloom. If you are in need at the moment, taking out a bad credit loan may help you turn your situation around and successfully sort out your financial problems.
It’s best to work with licensed credit brokers and experts when bad credit loans are involved. If you need cash in an emergency, we’re the ones to call! We are Australia’s most trusted lenders, and we can help you get exactly what you need to fix your money problems fast. Apply online today!