Are There Such Things as 'Bad Credit Loans Guaranteed Approval'?
Technically speaking, no loan is ever guaranteed, since all lenders will look at a borrower's overall financial and personal situation before giving out a loan. If someone is clearly unable to repay a loan, they will probably not be approved for one.
However, in most circumstances where the borrowers have a regular income and their finances seem to be under control, many lenders will guarantee approval regardless of how bad their credit is.
Residents in Australia can get a cash loan of $5000 even with bad credit, provided the lender is satisfied that they have the ability to repay as agreed and still cover their regular household expenses.
Is It Possible for Me to Get a $5000 Loan With Bad Credit?
It is possible to get a $5000 loan even with a bad credit rating since the most important point that the lender will consider is your ability to repay the loan within the agreed term.
Bad credit loans are similar to standard loans in terms of application, eligibility, and so forth. The main difference is that bad credit loans tend to come with higher interest and fees.
The fees and charges on bad credit loans greater than $2,000 are capped subject to government regulations which make sure that the cost of the loan each year is not higher than the original amount of the loan. Bad credit loans also usually have an establishment fee and a maximum annual interest of 48%, inclusive of all fees and charges.
Where Can I Take $5000 Loans for Bad Credit With Instant Approval?
There are several ways of getting a $5000 bad credit loan, here is a quick look at the two common options:
Contact a Direct Lender
The advantage of a direct lender is that you just deal with one loaning company, although this is also a disadvantage since you may need to contact several lenders to compare terms and conditions which can vary between lenders, and this involves lots of effort since you have to fill out various application forms and wait for their approval.
Work With a Loan Broker
A much quicker and easier method to find the right lender for a bad credit loan is through an online broker such as WeLoans. Just fill in one simple form online and you will be connected to multiple lenders specializing in bad credit loans in our network who can quickly send you various loan offers that you can compare in the convenience of your own home to find the best deal.
How to Boost My Credit Rating to Improve the Chances of Being Approved for a $5000 Bad Credit Loan?
- The first thing you should do is find out what your credit score is. You can use various online tools such as Tippla to find out from the various credit bureaus.
- Secondly, make sure you pay your debts on time – not just loan repayments, but also utility bills. If you think you will have to miss a payment for an unexpected reason, contact the lender and let them know, and you may be able to reschedule the payment.
- Avoid making multiple loan applications, because this brings down your credit score. This is where WeLoans comes in handy. Rather than applying to various lenders for a $5,000 loan, you just fill out one application form on our website to get in touch with a network of lenders.
- Pay off credit cards as soon as possible, and don't miss a payment. Paying on time actually improves your credit rating.
How Can I Spot Scams When Looking for a $5000 Loan for Bad Credit?
These days the internet is full of people who try to take money illegally through various scams, and the lending business is no different.
Here are some red flags you should watch for so you don't get fooled:
- All lenders and credit services in Australia have to be registered and hold an Australian Credit License (ACL). This should be shown clearly on their website.
- They should have a physical address listed. If they have no office address, just a website, that could be a warning.
- All secure websites start with HTTPS. If the lender's website starts with only HTTP, it may not be a safe and secure site.
- Reputable lenders will want to know a bit about your income and liabilities, a lender who is advertising 'no checks' may be a scam, and you should avoid them.