It is very easy to find yourself at odds with your credit rating in the modern world. You may not even be spending much every month , some people get life insurance quotes, but the fact remains that you haven’t been able to keep the ratings up. This can be a big problem for you going forward. Of course, it isn’t your fault that your credit rating has been plummeting. With the cost of living in Australia steadily rising due to a number of reasons, it can be hard to keep all your finances balanced. However, you can’t just ignore the fact that a bad credit rating is going to affect you later on.
The Effects of a Bad Credit Rating
Some of the side effects of having a bad credit rating can hit you below the belt when you are in need of financial assistance. Most banks will simply refuse to give you a loan to get what you need done; just because your credit rating isn’t that great. In fact, they will probably try to trip you up even more with their terrible financial advice. In addition to this, going to a finance company isn’t going to help you much either. These companies (the private ones especially) will launch investigations into your credit rating which will take a while, and result in you not getting the finance that you need. There are however companies that do offer bad credit cash loans if you know where to look for them.
There are a lot of instances where you could need some money to get some idea that you have had off the ground. For example, you may be thinking about launching a small business or an innovative new product that just could get your profits going again. This would help you recover your credit rating and make it look good again. However, you lack the funds to do this on your own. Short of crowdfunding, your only option is to get a loan. It is a catch-22 situation. You need a loan in order to pay off your loans, but you aren’t allowed to get a loan because of your loans.
Getting a Loan without a Bank
Explaining it to the bank or to the finance company is a completely pointless venture. What then, are your options? Well you have a few options that you can resort to when looking for a booster loan of some sort for your personal use, or for your business.
- Borrowing from your loved ones – This goes without saying. The first place you would turn to if your bank wasn’t being very hospitable would be the people you love. This includes your friends and your family. These are the most generous people in the world to you, and will always be happy to give you a hand. The best part? They don’t care what your credit rating looks like.
However, a lot of people seem to have issues with borrowing from their family. It makes them feel too dependent on the people they care about. This should not be the case but if it is, you are going to have to look elsewhere for a loan.
- Getting a loan from an individual – This can reap high rewards but comes with a high risk as well. While it is quite easy to get a loan from a private individual, and while the loan amount can be very high, there is a risk factor. A lot of these people charge huge interest rates on their loans. Before entering into any sort of agreement with a stranger about a loan for you, make sure that you get all the terms and conditions of the loan in writing, with witnesses. This will make it completely legal if it should come to that.
The perks of this method are that you can get a quick, easy loan without the hassle of providing too much in the way of identification and other small details. This is perfect if the amount of money that you need is relatively small, and if you feel like you will be able to pay it back quickly.
- Getting a loan from a company – There are plenty of companies in Australia that offer loans for people who don’t have the best credit rating. Unlike individuals (“loan sharks” is the popular term) these companies are actually legitimate. In fact, most of them are licensed by the government, with credentials like an Australian Credit License and many more. To get cheap home loans, borrower must have a good credit rating