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Unsecured Bad Credit Loans – Evading The Lack Of Credit Karma

Having bad credit can really be a karma for borrowers because it is extremely difficult to escape the bad credit cycle that high cost debt generates damaging your credit even further and making it increasingly difficult to obtain financing at a fair price. Fortunately, it is possible to obtain funds and fix your credit through unsecured bad credit loans but only if you know where to get them and use them wisely.

Because as any other financial product, unsecured bad credit loans can be a double edge blade that can easily help you cut your debt and protect you from damaging your credit or make your score drop and accumulate more debt if you ignore how to use it correctly. Thus, it is important to understand how these loans work and what you can expect from them in order to seize the benefits of bad credit financing.

I Have Bad Credit and I Do Not Own a Property

Non homeowner with bad credit can find it very difficult to obtain finance. The problem is that they represent a very high risk for the lenders and they have no collateral to offer to reduce that risk to reasonable levels. More than often, the only option that slow credit applicants who are not homeowners count on is applying for a regular loan with the aid of a co-signer with a good credit history. But even then, they might be declined too because the other applicant may not have a good enough credit report to cover the risk either.

Fortunately there are low credit score lenders specialized on helping people with credit problems. Though they obviously will not do it out of the goodness of their hearts and they will charge higher interest rates and fees, they will still provide those with slow credit the funding that they need in the form of unsecured bad credit loans which are personal loans customized for this kind of applicant.

The Requirements For Approval

Though there are no fixed requirements for approval, given that the risks of default are high, the greatest concern of the lenders is the borrower’s ability to repay the loan. Therefore, the most important requirements for approval is to show proof of income. Your income needs to be high enough to afford the monthly payments of your loan without difficulties or else you will be declined.

Moreover, to define the loan amount that you will be able to borrow from the lender, your income will be assessed along with bank statements and any other information regarding income or revenues regardless of whether you are employed, unemployed or self employed. Since proof of income is required regardless of your working condition, you will need to show copies of tax presentations if you are not employed so the lender can review whether you can afford the payments or not.

Income is the most important requirement for approval. So, as long as you can show proof of income, chances are that you will get approved for an unsecured bad credit loan. The rest of the variables will define other loan conditions including loan amount and interest rate.

Bad Credit Loans – “Personal Debt Reality for Australians”

Ever thought to yourself, “I’m in the worst possible financial situation, and I’m certain every single person around me is in a far better position”? It’s something a lot of people think, because when you suffer from financial problems, it can be one lonely place. Australia is often regarded as ‘The Lucky Country’ and the economy is doing well. Unfortunately the personal economies aren’t doing as well. Personal bankruptcies are on the rise and the total household debt for Australia is around $650 billion, which equates to about $32,500 for every man, woman and child. That’s a lot of debt! The really alarming fact is that household debt just keeps rising and it doesn’t appear to be slowing. On a world scale, Australia rates poorly for personal debt. The situation here is worse than that in the US and the UK!

For every $100 we make, $130 is owed!

With shocking figures like this, it’s definitely time to do something right now. Imagine the impact of another interest rate rise on people who are already incredibly over-extended? The situation is serious, and now is the time for everybody to go start applying good money management practices. One key aspect of good money management is getting rid of bad debt altogether. The next logical question therefore is, “What is bad debt and what is good debt?”

Bad Debt and Good Debt

I know it may be hard to believe that any form of debt can be good, however it’s true. Let me explain it all to you:

o Bad Debt: This generally refers to credit card debt that incurs high interest. Often people will accrue bad debt by using credit to buy things they do not need and cannot afford. If the debt is negatively impacting upon your life and causing great stress, it’s bad debt.

o Good Debt: Good debt refers to using credit to buy things that improve our financial future. Examples may include a loan for a property (with a low interest rate) or even a tax-deductible, low interest loan to buy property, good shares, etc.

Improving your Financial Situation

Quite clearly personal money management is an area Australians don’t excel at, and unfortunately a lack of skill in this area has dire consequences. So what can we do in order to avoid sinking into the dark hole of debt? Here’s a few things I recommend to bad credit clients I talk to daily:

o Start living within your means: Know what money you have coming in, and what money you have going out. If you have difficulty keeping on top of things, hire a bookkeeper who’ll keep you organised. With this information, set a budget and stick to it. Your financial future depends on it, because if you do nothing, nothing will ever change and you will always have money problems.

o Stop the impulse buying: Sure it’s hard for some people to resist the temptation to spend whenever they walk into a shopping centre, however your financial future depends upon this. You don’t need to be spending like it’s going out of fashion. There are other things you can be doing with your life and money, so cut out the impulse spending and stop throwing your money away!

o Get organised so you don’t run out of money: Many people scrimp in the days or weeks before pay day, but it can be avoided. It all comes down to good money management. Get organised, get a bookkeeper if you have to, budget and stick to it!

o Figure out how much you need in retirement: I don’t mean to depress you, but retirement comes too soon! You need to prepare for it, so you must determine how much you will need to live on when the working income stops. As a rule of thumb, if you have one million dollars in the bank, you can live off about $50,000 interest each year if you were earning 5%. How much do you need to live? Determine how much and start preparing! Seek out professional advice from bad credit mortgage experts if you need help preparing.

o Start saving: Even if you don’t think you can save much, save something! Try and save 10% of your income, and you will see positive results. Create a savings plan and stick to it, because your financial future depends upon it. Think about the money you throw away, and ask yourself how much you could have had if you saved it.

o Get rid of credit cards that charge more than 12% interest: With credit cards like this, you’re throwing money down the drain just paying the minimum monthly repayment. Devise a strategy to pay such credit cards out. The best thing is to kill the credit card that is costing you so much in interest. Opt for low interest credit cards and use wisely.

o Get committed to paying your credit cards off: Did you know that for every $1000 in credit card limit you have on your cards, you lose $5000 worth of borrowing potential when you apply for a loan? That’s significant, so pay off those credit cards and reduce the limits. You really don’t need to have five figure limits on your cards! Plan to pay off your cards and stick to the plan!

o Start saving for everyday: Not just a rainy day! Start a savings plan and stick to it. You never know when you might just need that money. If you have money tucked away, you won’t need to use credit cards which if abused, will only sink you further into the debt hole.

o Get money: If you keep thinking you have no money, start thinking of ways to get money. Do this by reducing your living expenses and increasing your income. There is a great deal of money to be made online, so if you are interested in a passive income (which you certainly would be if you have no money all the time) start doing your research and stick to that savings plan!

Get Help Now!

If you feel your bad credit/debt situation is too much and you are constantly sinking into a deeper hole, you must act now! Call a reputable bad credit mortgage specialist and turn your financial situation around for the better. Financial security is there just waiting for you, so take the opportunity today.

Instant Decision Bad Credit Loans – Get Instant Cash in a Hassle Free Manner

One can have access to quick funds with instant decision bad credit loans. People with bad credit history like arrears, late payments, default payments or bankruptcy can avail this facility without any hassle. It is very frustrating when one does not have sufficient funds to cover the costs of an unexpected finance. It doesn’t matter whether a borrower has bad credit history. These loans are instantly approved. Thus one doesn’t have to face any more financial crisis. Now there are no long delays as one can resort to instant decision bad credit loans.

Earlier, it happened so that the borrower was required to provide the faxed copies of bank’s statements, driver’s license and paycheck chubs. If the borrower failed to comply would only worsen the matter. Now it is not so as instant decision bad credit loans are here to come to rescue. Now there is no need for any credit check. Moreover, there is no need for any collateral to place against as security. Thus, instant decision bad credit loans are a risk free loan.

Now days, one does not need to travel all through the office to get the information and take the help of this loan facility. Now days, it is just through a click of mouse. Several lenders provide free quotes to the borrowers. One just needs to download the application form and fill it. It is understood by any sort of mind. This process saves time and efforts as there is no paperwork involved in it. It is economical too. Now there is no time to waste on faxing the documents. Just as soon as the lender receives the application, he starts processing it. Thus, the main feature of instant decision bad credit loans is that it does not require any credit check or any security.

When the borrower receives the cash amount, he roughly has around two weeks to 30 days to repay the instant decision bad credit loan amount. It happens that lenders allow one to extend the length of instant decision bad credit loans if a borrower requests for extension. One has to pay only the interest due when one receives his next paycheck. Even if he extends his loan, he can still avail of cheap rates on his instant decision bad credit loan as agreed upon in his original loan agreement. These are short term loans which are made available for a maximum period of 31 days. If during the repayment period, borrower finds some difficulty, then there is a provision under which the duration can be extended. This can be done by paying an extra fee to the lender. Instant decision bad credit loans are known as loans for emergency. It is the sudden requirement of money that makes the life miserable. But instant decision bad credit loans are here to take all the pains. These loans are meant for emergencies which gets its approval without any delay. Moreover, the loans can be availed without any collateral which then results in its instant approval. Thus one can simply avail this option which is hassle free.