BAD CREDIT LOANS
People with bad credit ratings often come up with the question of whether they can get a bad credit loan. The answer is that it is possible with some lenders. While traditional lenders are less likely to consider your application, there are certain lenders that may be able to assist you in getting a bad credit loan however, you must be aware that typically it will be at a higher interest rate.
So, how does the process work and what should you know about my bad credit ratings? Find out in this guide.
What Is A Credit Rating?
Credit rating refers to a category that you are assigned based on your credit score. Your rating will determine how your loan application is assessed. A typical lender will follow the following process with accessing your loan application:
- A credit rating of 1-2 is assessed as a good quality customer
- A rating of 3 involves the normal assessment of the loan
- A rating of 4 means there is a good chance of the application being declined unless there is a supportive reason
- A rating is 5 means that the application has a very small chance of being approved
All lenders will have their unique loan assessment systems. This means that you may have a chance to get a quick cash loan from some lenders, finding these lenders is hard and time-consuming not to mention applying with so many lenders can have a negative effect on your crediting rating. This is where CashPal can assist, CashPal is a lender finding service that has helped thousands of Aussies matched to the most suitable lender!
Getting a Loan with a Bad Credit Rating
When you apply for a loan with CashPal while having a bad credit rating, your profile will be assessed to match with the most suitable lender. The process has the following aspects:
- A search will be conducted to find a lender that rates your profile favourably.
- A search for non-conforming lenders will be done that consider such applications.
- The loans are compared before the most competitive offers are presented to you.
Lack of Credit Rating
It is rare, but there are often people who don’t have a credit rating. If you haven’t had any type of loan, credit card, or phone contract, you will fall into this category. If this is the case, you can prove your financial commitment by getting a credit card. You may have to create a credit history for a period of 6 months before becoming eligible for a loan.
Having a Bank Account with the Lender
When you have an open bank account with a lender, it increases your chances of getting no credit cash loans. It is recommended that your account have the following features:
- Should have been open for 6 months or more.
- There should be no instance of overdrawing.
- There should be a few ATM withdrawals from clubs and pubs.
- Maintain a healthy balance.
- Preferably having an increasing balance.
The way you use such a bank account and the information on your credit file is used to create a credit rating. This rating is then used to process your application for a loan.
So, having a bad credit rating doesn’t always mean that you cannot apply for an Instant Cash Loan. There are ways that you can increase your chances of getting a loan from a lender. You just have to seek help in the right places and follow the right steps.
If you are interested to see if CashPal can help match you to a lender, apply online now.