How to Apply for a Personal Loan for Bad Credit
Applying, let alone getting approved, for a personal loan if you have a bad credit history need not be a long shot. You can take advantage of personal or short-term loans offered by reputable direct lender loans for individuals with poor credit ratings or bad credit records.
Bad credit loans are specifically designed for people who may have been rejected before for a personal loan due to their unimpressive credit score. It’s your last resort should you need immediate financial assistance but are lacking on the necessary funds.
Most people applying for personal loans need quick financial remedy to cover emergency or unexpected expenses. For instance, you may have opted to apply for a personal loan to cover medical bills or repairs and maintenance for your car, or to finance non-immediate expenses like family vacations.
With your bad credit score, however, personal loan approval was next to impossible. This is why personal loans designed for people with bad credit could be the best solution to end your bad luck whenever you try applying for a quick loan on a bad credit.
Speaking of bad credit, are you afraid you won’t qualify for a loan if you have poor credit? Learn more about no credit check loans if you wish to borrow money without a credit check.
If this sounds ideal to you, Perfect Payday offers the following information to help you arrive at an informed decision before availing yourself of bad credit loans.
Is it really possible to get a personal loan even with a bad credit history?
Yes. Reputable lending institutions like Perfect Payday believe that having a bad credit score shouldn’t get in the way of availing a personal loan. Poor credit ratings do not tell the whole story of why you ended up with bad credit, which is why they shouldn’t be used solely to judge if someone is worth the risk of being granted a high acceptance rate loan.
Bad credit ratings may simply be a result of different factors that prevented you from effectively managing your finances. Whilst it doesn’t discount credit history as part of its assessment process, Perfect Payday would rather look at other aspects which may also determine your eligibility for a personal loan.
Do you need an instant cash loan? This type of loan, also called a payday loan, can help you get money quickly if you need emergency funds.
For example, you may already be working on repairing your credit rating and getting some impressive progress in managing your finances overall. Perfect Payday takes all these efforts into consideration to assess your qualification for a personal loan, putting more premium on how you’re handling your money today than what you have done in the past.
Giving you a chance to avail of a personal loan despite your bad credit history is also a great way to prove to other loan providers that you are now responsible in handling your finances and are able to meet your repayment obligations in a timely manner. This can be referred to in the future as basis for your credibility, should you find yourself availing of a loan again from other credit providers.
Who are qualified to apply for bad credit loans?
Should you be interested in applying for personal loans offered for individuals with bad credit ratings, make sure you meet the following the requirements:
- That you are an Australian citizen or a permanent resident
- That you are at least 18 years old
- That you receive a regular income for the past 90 days
- That you have a valid email address and mobile number
Once you meet these basic requirements, it will be a step closer to getting approved for a bad credit loan.
How exactly does availing for a bad credit loan work?
Perfect Payday has made it easier for individuals with bad credit history to avail themselves of a personal loan. You can just access our website via your computer, tablet, or smartphone to file your application online.
When you access our website, our loan calculator will ask you to enter the amount you would like to borrow and how long you can pay for that loan. After that, you will be asked to enter your personal details, including your online banking credentials. You will also be required to state the reason why you are availing yourself of a bad credit loan.
Note that providing your online banking credentials is required to give us an idea of your current financial status. Using the latest in internet banking security, your bank statements are accessed by read-only, after which we make sure to delete your information immediately. We do not access any other details on your online banking account, not even your current funds.
Once you show proof that you have been making considerable progress in repairing your credit rating, we will most likely take this consideration to approve you for a bad credit loan.
Should I get approved for a bad credit loan, how much will this cost me?
Perfect Payday believes in transparency, which is why we make it a point to be upfront when dealing with bad credit loan applicants. We have provided a loan calculator specifically designed for bad credit loan applicants, so they can have easy access to the interest rates they have to pay and the repayment terms they have to meet.
Through our loan calculator, you will know if you can meet the repayment terms and if you can meet the interest rates based on your current sources of funds.
Should I be concerned about your credit checks?
Definitely not. Credit checks are part of our standard assessment process, which we always conduct on all loan applications, especially for new ones.
However, we reiterate that credit checks do not have the final say when we approve a bad credit loan. We base our assessment on other factors as well, particularly on how you are doing now financially and the way you currently juggle all your financial obligations.
So, there is no need to worry when we conduct a credit check on you. If you can prove that you are responsible in handling your finances today, you will most likely get approved for a personal loan even on a bad credit.
Can you give me an idea of the personal loans you offer for individuals with bad credit?
Perfect Payday offers a myriad of personal loan options for applicants with bad credit history:
- Personal loan (small, unsecured): This loan doesn’t require any asset to be included as security during loan application. You may borrow from $300 to $2,000, which you may repay for one year.
- Personal loan (medium, secured): With this loan, you may borrow between $2,001 to $4,600, which you may repay for a period of 13 to 24 months. This loan requires security.
- Personal loan (large, secured): This loan requires security, and you may be allowed to borrow between $5,000 to $10,000, which you may repay for a period of 13 to 24 months.
For individuals with bad credit, it is usually recommended to avail the secured personal loan or the unsecured personal loan. Whichever you decide to apply for, rest assured that Perfect Payday will give you just and proper assessment with repayment periods that you will be able to meet.
Note that you can use items like your car or motorbike as assets to be used as security when applying for loans with security requirements. Security is required to lessen the risk when applying for bad credit loans with medium or large amounts. When you fail on repaying your loans, assets used as security will be claimed by Perfect Payday to cover the balance you owe on your repayments.
How long should I wait to be approved for a bad credit loan?
Since we offer bad credit loans completely online, this means you instantly get an answer when you have completely accomplished all the requirements needed. We typically provide an answer in an hour; longer when we need more details or information from you. Make sure to check your email or mobile phone for any message from us.
Should you get approved for a bad credit loan, expect the loan contract to be delivered to you the soonest possible time. We encourage that you read this document carefully before you sign. Once you accept the terms and conditions of your contract, the amount you applied for will be transferred to your bank account on the same day or within 24 hours, depending on your bank’s transfer policies.
Do you offer any other loans aside from personal loans?
Yes. We also offer car loans and personal loans for Centrelink beneficiaries.
For car loans, we offer secured loans for eligible applicants with bad credit history. Under this loan, you may borrow from $8,000 to $100,000.
If you’re a Centrelink beneficiary, you may also get approved for a personal loan, as long as you meet all our requirements. We do not disregard applicants no matter where their income comes from. What is important to us is that your capability to pay your repayment obligations.
Why should I trust Perfect Payday?
Perfect Payday takes pride in being one of Australia’s most trusted and reputable lending institutions. This means you can rely on us to give you a fair and just assessment process when you apply a bad credit loan with us.
As long as you are eligible, have a valid reason for availing yourself of a bad credit loan, and have a regular source of funds to meet your repayment obligations, there is no reason why we can’t do business with you.
We recommend, though, that you make a thorough research about us or any other lending institutions you want to apply a loan from for your own protection and to enable you to make an informed decision before you apply for a loan.
With this information, you can now confidently decide if a bad credit loan is right for you. Just know that whatever you decide, it is important that you are able to meet all your financial responsibilities and are keen on taking that road towards financial freedom soon.