Loans for Gamblers
Gambling is one of those things that could destabilise someone’s life in a matter of moments. It starts with having a little bit of fun with your friends at a casino. You tell yourself that you won’t bet on too much money and that you have it under control.
The next thing you know, you can’t stay away from the rush that gambling gives you. The adrenaline of winning money makes you feel more excited than you’ve ever felt.
Suddenly, you’re losing money, and we’re not talking about a manageable amount. You’re now in debt, putting a lot of stress on you and your family. There is the money that you owe, and there are the close relationships that are falling apart, but you’re not the only one.
Gambling is a big issue all over the world, but especially in Australia. A shocking one-third of Australians are in debt because of gambling, and that’s a lot.
So, most gamblers, if not all, find themselves resorting to borrowing very often, but what kind of options are right for gamblers? Continue reading to find out.
What to Know About Loans for Gamblers?
Gambling Doesn’t Affect Your
Many gamblers find themselves panicking and asking, “does gambling lower credit score?” The truth is, it doesn’t unless you have borrowed unsecured loans to use it for gambling or missed repayments on gambling debts. However, gambling in itself doesn’t reflect on the score.
That being said, if your credit score is bad, aside from gambling, you need to fix it before applying for second chance personal loans with bad credit to increase your chances of approval.
Gambling Still Affects Your Chances of Approval
Every lender wants to secure themselves, and you would too if you were in their place. When they assess their borrowers, they want to make sure that they can repay what they borrow in addition to interests and fees.
So, you are more likely to be rejected than accepted because many lenders may not trust that you’ll be able to pay back.
Ongoing Expenses Matter
Lenders also look at your ongoing expenses, and if gambling makes up a lot of them, you could be rejected. The reason why it doesn’t look good is that you have a higher chance of getting in trouble again and being unable to repay the loans.
Give Yourself a Break
If you gambled yesterday and lost and want to apply for a best cash loan today, you’re being a little bit unreasonable. Stop gambling for enough time that your credit history will look “clean” and that your habit won’t affect the applications. Typically, you need three to six months.
Types of Loans for Gamblers
Here are the best options for borrowers that want a way out of a gambling debt.
1. Guarantor Loans
A guarantor urgent loan is the type in which you involve a person, typically a friend or family member, to pay off the entire loan in case you fail to do so. This type of loan is ideal for borrowers with bad credit, low incomes, or gambling problems.
Pros of Guarantor Loans:
Low Interest Rates
If you’re a gambler, few lenders could trust that you’d be able to handle the loan no credit check on your own. By including a financially capable person, you’re giving lenders a reason to have more confidence in you to repay Australia loans.
More security for the lender means the ability to borrow more money for you. So, since the lender feels that they’ll get their money back, they can give you more room in terms of how much you can borrow, which will help you pay your gambling debt faster.
Fresh New Start
A lot of gamblers have bad credit, which will affect their financial future more than they even know. The way to improve your credit score is to pay what you owe. So, if the guarantor loan is paid on time, your credit score will become higher, and you’ll get a fresh new start financially.
Cons of Guarantor Loans:
Could Damage a Relationship
Involving a friend or family member in your loan makes you feel safe. That being said, if things go wrong, these relationships could sour very quickly. So, make sure that you’ll be able to repay your guarantor at the terms and conditions that you agree upon.
2. Secured Loans
Secured loans are those where you sign over personal property, vehicle, or other kinds of assets as collateral to the lender. This kind of loan is common among borrowers with bad credit or low income and gamblers.
Pros of Secured Loans:
Low Interest Rates
Since the lenders have secured themselves with the asset that you’ve put up, they no longer feel that they have to charge you a lot. That’s why the interest rates of secured loans are lower. Low interest is a good thing for a gambler because there’s less money to worry about.
Again, signing an asset to the lender makes them be more trusting that they’ll get their money back, so they’re more likely not to restrict you too much in terms of how much you borrow.
Cons of Secured Loans:
Could Lose the Collateral
As with any centerlink bond loan, if you don’t repay on time, you’ll pay extra costs. However, in the case of secured hardship loans for unemployed, gamblers will find themselves losing their home, car, or whatever they used as collateral for the loan to happen.
Gambling is a serious problem that has the ability to turn your life upside down and drown you in debt. Therefore, it’s perfectly okay to seek help. In fact, it’s better than ignoring the situation because the same day cash loans for unemployed will not go away on its own.
While working on solving the gambling problem emotionally, it’s important to pick the right personal loan guaranteed approval no bank account to be more at peace financially. So, stay informed of everything you or your guarantor will have to pay before you make any commitments. Apply with Perfect Payday today for small payday loans.