Bad Credit Payday Loans Guaranteed Approval Direct Lenders
Sometimes, we’re put in positions where we have to deal with financial emergencies even though we don’t have the needed money within reach.
Such scenarios require urgent access to funds, and that’s where short-term payday loans come in handy. Basically, they’re loans that grant you the funds you need within 24 hours of approval under the condition that you repay the fund on your next payday.
There are, however, plenty of online lenders who are more than willing to work with borrowers that have a bad credit history. Such loan providers determine creditworthiness based on other factors than the borrower’s credit score.
Does that mean approval is guaranteed? No. There’s no such thing as bad credit cash loans guaranteed approval Australia. We urge you to stick around to learn more about bad credit payday loans.
Why Isn’t There Guaranteed Loan Approval?
According to the Australian National Consumer Credit Protection Act 2009, loan providers aren’t allowed to provide guaranteed approval for all of their borrowers.
The act serves as a means of establishing responsible lending so that borrowers are protected from having to repay loans they weren’t suitable for in the first place.
With that being said, if you come across any lender that’s advertising guaranteed approval on short-term personal loans, that lender is most likely running a scam that involves excessive interest and fees or involves having borrowers singing contracts based on unfair or illegal terms.
Legitimate lenders are obliged to assess their borrowers’ financial background before approving their loans. This is to ensure that they’re able to repay their loans within the expected repayment term. Lenders do so by assessing financial statements like bank statements and payslips.
Okay, so how can you determine whether or not a lender is legitimate? Simply, legitimate lenders must be listed with the Australian Securities and Investments Commission (ASIC).
If a lender is on the ASIC’s “do not deal with” list, you shouldn’t borrow money from that lender. Also, you ought to report the lender to the ASIC so that they don’t prey on those in need.
Why Opt for Direct Lenders for Bad Credit Loans?
Direct lenders differ from finance brokers in the sense that they work with borrowers directly without involving any other parties.
Brokers, on the other hand, are just third-party entities that help link borrowers with potential lenders who are willing to accommodate their loan requests.
A few years ago, hiring brokers was the thing to do when you’re facing a financial emergency. Nowadays, however, more and more people are resorting to direct lenders to ensure simpler and faster access to funds.
What Are the Different Types of Bad Credit Loans?
Before applying for a 5k loan, you need to learn about the two types of loans available, namely unsecured and secured loans. An example of a secured loan would be no credit check car loans Australia, where the car itself would be the security for the loan. The following paragraphs help shed light on each type.
Unsecured loans, also known as deferred deposits, cash advances, or credit success loans, are short-term loans that don’t require any sort of collateral such as home equity. This is in contrast to bad credit boat loans, where the boat you are buying would function as collateral.
Instead, unsecured loans use fees and interest to offset the risk of lending. Repayment typically takes place when the borrower receives their next paycheck, which is about 2-4 weeks after the loan.
The amount you can borrow via an unsecured loan varies from one lender to another and from one city to another.
Rather than using your credit history as a reference to whether or not you can repay your bad credit monthly payments loan, lenders base their analysis on your income and financial statements.
Before you apply for an unsecured payday loan, you must be aware of the penalties associated with not being able to repay the loan on time. You may be required to roll the loan you’ve borrowed into another lawn, which, in turn, adds to the overall cost (charges and interest rate).
It’s also important to know that a notable percentage of bad credit personal loans guaranteed approval direct lenders tend to roll their loans over. The more loans you roll over, the higher the cost goes, making the debt harder to repay.
Secured loans differ from unsecured ones in the sense that they’re backed up by some sort of collateral like a car title of home equity.
Secured loans are provided based on the value of the presented collateral. For instance, if your car is valued at around $5,000, hypothetically speaking, you won’t be able to borrow more than $5,000.
The lender holds to the collateral until the loan is repaid. Luckily, secured loans tend to come with fees and interest rates that are significantly lower than their unsecured counterparts. You may need to borrow a larger amount of money. If you’re saying to yourself, “I need a $30000 loan with bad credit“, you are likely going to need a secured loan.
Before applying for a secured loan, you need to understand that failure to repay the loan in time will result in you losing whatever it is you’ve offered as collateral. Secured loans for people with bad credit are available from Perfect Payday.
What Are the Eligibility Terms of Bad Credit Payday Loans?
Eligibility terms tend to vary from one lender to another, but generally speaking, to acquire a short-term personal loan in Australia, you must be over the age of 18, an Australian resident, employed with a regular income, and have a valid phone number and email address.
Information You’ll Need to Provide
A bad credit cash advance is quite easy to apply for and don’t require a whole of documents and paper forms. Best of all, most lenders offer the ability to apply online.
When applying for bad credit bike loans, you’ll likely need to provide proof of ID, myGOV credentials (Centrelink users), name and address of your workplace, internet banking credentials for financial assessment, the purpose you’re applying for a loan, and that’s about it.
Granted, bad credit can close a lot of doors when trying to acquire no check truck loans, but that doesn’t mean it’s impossible. There are plenty of online lenders who are more willing to provide payday loans without even checking your credit history.
There is, however, no such thing as guaranteed loan approval. It’s simply illegal. As we already mentioned, lenders who provide guaranteed approval on loans are most likely running a scam.