A Borrowers Guide to Bad Credit Loans Australia
If you find yourself in a situation where you need bad credit loans, you might not know where to turn.
You may have tried applying for loans in the past with no success, or may even have thought that there were no options available for people with less than perfect credit.
Options do exist, however, bad credit loans are available and easy to find if you know where to look.
Below are just a few of the ways that you can get the bad credit loans that you need.
Auto Title Loans
One of the more basic types of bad credit loans is the auto title loan.
These loans allow you to use the title for a car, truck, or other vehicle as collateral to ensure the repayment of the loan.
These bad credit loans usually allow you to keep the vehicle, simply placing a lien or legal claim by the lender on the title so that they can take possession of the vehicle and sell it should you not repay the loan.
Most lenders will do this only as a last resort, though, as the trouble and cost of repossession is something that they would rather avoid.
Another alternative for bad credit loans is the pawnbroker, or pawn shop.
Much like the auto title loan lenders, pawnbrokers lend money using personal property as collateral.
Unlike auto title loan lenders, however, pawnbrokers require you to bring the property to them so that they can retain it until these bad credit loans are repaid.
Should you fail to make payments on the loan, a pawnbroker can sell the item in their shop after 90 days have passed.
Many pawn loans are for relatively low amounts, though, so repayment is often not difficult; for those people who need larger bad credit loans many pawnbrokers also offer auto title loans.
Finance Company and Bank Loans
Many banks and finance companies offer bad credit loans, which are very much like traditional loans except that the interest rate is usually higher and they require either collateral, a cosigner, or both.
If the loan requires collateral then it must be something of value that could easily be sold, such as real estate, a vehicle, or certain collectables.
If the loan requires a cosigner, then another individual has to sign for the loan as well and share the obligation to repay the loan.
Regardless of the method that the bank or finance company chooses to use to provide security for the loan, the end result is that you are able to get the loan that you need and work towards repairing your credit rating in the process.
the author, John Mussi, is the founder of Direct Online Loans