Short Term Loans for Bad Credit, Same Day
Did you know that you can apply for short term loans and get the funds transferred to your account on the same day, even if you have bad credit? That’s right.
While such a scenario sounds hard to believe, it’s not impossible, provided that you pick a suitable lender and play your cards right. Let’s find out how you can acquire short term loans for bad credit, same day approval right now!
How Do Short Term Loans for Bad Credit (Same Day) Work?
As the name implies, a short term loan for bad credit is a type of unsecured personal loan that’s tailored for those with a bad credit history and need access to some quick cash.
If your not-so-impressive credit score is holding you back from getting the loan you need, don’t lose hope just yet. You can still get a short-term loan and get access to the money almost immediately once it’s approved.
Many online lenders will overlook your bad credit score when applying for short term loans, but you’ll need to submit proof that you have adequate income sources to make your payments on time.
Short Term Loans for Bad Credit Requirements
There are several requirements needed to apply for instant approval bad credit loan in Australia, which are:
- Being an Australian citizen or a permanent resident of Australia
- Having a job with a regular income for the past 90 days
- Being at least 18 years old
- Having an active phone number and email address
On a side note, you need to keep in mind that the requirements may vary slightly depending on the lender. Some lenders may ask for a bank statement, especially if your credit score is too low.
Also, you may need to have a guarantor with a better credit score to cosign a loan with you. Such loans provide more security for the lender because if you default on the payments, the guarantor would be responsible for covering them.
How Much Can You Borrow?
Typically, short term loans that are approved on the same day are relatively small compared to other loan types. Short term loans usually have terms of 12 months or less, which explains why large loans aren’t an option here. In most cases, the maximum amount of money you can borrow won’t exceed $10,000.
However, it’s worth noting that some lenders may allow you to borrow larger loans, but since we’re talking about bad credit loans here, don’t get your expectations too high.
What Can Go Wrong?
Taking out a loan is a huge responsibility, so you must be aware of the risks before committing to monthly repayments that will affect your income.
For example, you should weigh in the risk of getting a salary cut or even losing your job altogether. You should also consider other necessities that must be paid within the loan’s terms and calculate whether they’d compromise your ability to make the payments on time.
Moreover, you need to ensure that the lender can be trusted, especially if you’re seeking an online lender. Many lenders promise to approve all loan requests no matter how bad the credit score is, but there’s no such thing as a 100% guaranteed loan.
It would be best if you were careful with these lenders because you could fall prey to loan sharks in many cases. Ensure that the lender is registered with the Australian Securities and Investments Commission (ASIC) before applying for a loan.
Are There Any Other Options Than Applying for a Loan?
A same-day short-term loan can be your lifesaver in tight financial situations. However, a loan isn’t the only way you can get money on the same day. If you’re an established member of a credit union, consider borrowing some money from it. You’ll have a better chance of getting your loan approved from a credit union than from a lender.
You can also use your credit card. Credit cards have the advantage of offering grace periods within which you can pay the loan amount in full without having to pay any interest fees. Just make sure that you keep track of your spendings to avoid debt accumulation. Another option is to borrow from a friend or a family member.
Applying for quick cash loans with bad credit and receiving the money on the same day isn’t unachievable. Just make sure that you can commit to making your payments on time.
After all, you don’t want this loan to make your already-low credit score even lower. In fact, you can take this loan as an opportunity to improve your credit score and get better loan deals in the future.