What is bad credit?
If you have missed a credit card, bill, mortgage repayment or have any other debt, there is a good chance that this is on your credit file. If you have too many debts for your income or your total assets are less than your total liabilities, then the major banks may assess you as being unsuitable for help.
When you have bad credit, it can be challenging to access finance when you require it, but when you find yourself in this situation, you still have some options.
An untoward life event such as a divorce, loss of job, injury or business failure that has produced a tarnished credit file can happen to many Australians. Falling into bad credit doesn’t mean that you are irresponsible or a deficient person.
Financial stress can occur to someone in any suburb.
Economists know that financial stress can occur when interest rates increase, and affluent people may be the most susceptible due to larger loan to value ratios.
Definition of a secured loan
A secured loan is one that is linked to a piece of collateral such as a car or home.
Lower interest rates and fees can usually be found if you can offer security. Lenders may also be more likely to approve you as the loan is safer for them.
A secured loan is treated in the same manner as a personal loan and can rescue you from a financial emergency. If you need money immediately to buy or repair a car; make payments or consolidate credit card debt, but don’t have a strong enough credit score to get a loan from one of the big banks, please don’t give up.
Help is available from Prime Finance, even though you have a poor credit history.
How to obtain a secured loan
A process of borrowing money that requires collateral is defined as a secured loan. To gain a loan of this type, you must have proprietary rights to the title of a vehicle. First, you need to apply online for a secured personal loan and submit your resource details. Then, follow up with any additional document requests.
Forms of Secured Loans
The type of secured bad credit loan you can obtain will depend on the kind of collateral you provide, but usually, you will have the choice of:
- Car loans. If you wish to purchase a new or used car, you can use a vehicle that you own to secure a loan.
- Home equity loans. When you have equity in your home, you can consider getting a home equity loan where the asset you hold works as collateral.
- Secured personal loans. A secured personal loan is related to the above in that you can purchase an asset such as a car and use it as security, but you also have the option to use an existing asset as collateral. A vehicle, boat or caravan, and sometimes jewellery can also be utilised.
Some considerations before applying for a Secured Loan
- Borrowing within your budget will ensure you can repay the loan
- Check the loan’s terms, conditions and fees.
- Short term loans will have higher repayments but cost you less in interest payments, saving you money in the long-term.
Why is a secured loan a good idea?
- Consolidate your credit card debt. Monthly payments with your secured loan are likely to be lower than the annual percentage rate on your credit card(s).
- Finance a purchase. Gaining a personal loan may be less expensive than the finance provided by the vendor.
- Finance a significant event such as a wedding. Instead of placing large expenses on your credit card, a cost-efficient solution may be a personal loan.
- Improve your credit rating. Your credit score may be a large amount of credit card debt. A lower amount of your total credit you use will result in an improvement to your rating. Having a personal loan increases the total amount of funds available to use.
- Refinance a loan. You may be able to pay the loan off faster with a lower interest rate from your loan.
Consulting with a trustworthy Private Lender
Because bank lending requirements have become more stringent, finding a secured loan with poor credit can be difficult, particularly within a short time frame.
Prime Finance is a private lending company incorporated in 2004 to promptly resolve temporary funding requirements, including secured loans for bad debt. For example, by using your property to obtain the loan, you could be quickly approved for our loan options.
Tailoring a loan to suit your situation and requirements will also help to allow you to repair your credit history. Prime finance will provide you with the information you need to see if one of our loans is right for you, even if you have bad credit.
With the right savings strategy and an affordable budget, even a first home buyer can acquire a home loan with a bad credit background.
Prime Finance is a professional company that specialises in a broad variety of short-term loans with the best available rates and no hidden fees. Short-term loans can be settled within 3 to 5 days from application.
Why you should choose Prime Finance
Prime Finance can provide conditional approval within 1 hour.
You can be approved for a secured loan, even with bad debt, when all the pre-requisites have been fulfilled, and the purpose of your loan requirements have been satisfied. Acceptable loan purposes range from commercial, residential, bridging finance, caveat loans, payments of business debt and personal use.
Prime Finance offer loans Australia wide with new loan products and funding to give progressive finance solutions for individuals and businesses.
Prime finance is the experienced professional team to contact when you have bad credit and require a loan. With more than 25 years of experience, Prime Finance has proven resilience by remaining one of the limited numbers of private lending companies in Australia.
We will find finance that best suits your requirements with our unprecedented range of loan products. Prime Finance are specialists for short-term business and investment loans.
Please contact us today.