No Deposit Loans
|Bad Credit Loans with Collateral or No Deposit
Ironically, many loan programs in Australia are designed for those who don’t need them: wealthy individuals with high credit scores.
Meanwhile, they leave hard-working people with poor credit scores to scramble for cash or go without.
Fortunately, secured and unsecured personal loan
programs are now available even to those with bad credit and recent bankruptcies.
Such loans have higher-than-average interest fees, but they can nonetheless provide peace of mind.
A personal loan can provide a quick influx of money for paying creditors and establishing a better credit history.
Secured and unsecured personal loans for people with bad credit are described below.
Bad Credit Loans with Collateral
The first type of loan, a secured loan, involves collateral. These loans are pursued by people with all types of credit ratings. With a secured loan, a customer with who owns a car, a home, or another valuable asset uses that item to back up their loan. Since the bank is more comfortable lending to a person who can draw money from a home or car if needed, it will give better interest rates when collateral is offered. The rate given to a borrower with bad credit may still be higher than what’s given to a person with good credit, but a reasonable loan can be negotiated nonetheless.
Of course, a person should not use a home or a needed vehicle as collateral if there is a risk of defaulting on the loan. In such cases, getting a bad credit loan with no deposit might be a smarter option.
Bad Credit Loans, No Deposit
The second type of loan – an unsecured loan – involves no collateral or deposit. Unsecured loans are usually based on credit scores. These were once unavailable to people with bad credit, but the advent of Internet lending in Australia has brought more competition and diversity to the loan industry. Many online companies actually specialize in issuing bad credit loans with no deposit or collateral.
People who receive no-deposit loans pay higher interest rates than do people with deposits or good credit. However, they have the benefit of accessing cash quickly without risking the loss of a valuable asset.
Unsecured Payday Loans
Payday loans are a type of unsecured loan – although strictly speaking, they are “secured” by the bank’s knowledge that the borrower has been and continues to be gainfully employed. Payday loans may be given for a fraction of a borrower’s paycheck. These short-term loans are to be repaid within a few weeks. They have higher interest rates than do long-term loans, but they come in handily when relatively small amounts of cash are needed immediately.
A loan can be used as a stepping stone on the path to better credit. However, just as a loan can be used to establish good credit, it can also contribute to bad credit if it triggers yet another set of late payments. Shop around for the best deal, make payments on time, and enjoy building a better credit score.
We are here to help, no harm in asking for a loan when times are tough, banks may say no, but that's where we come in.
All enquiries are treated with utmost respect for your situation and we will get back to you promptly.
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