The Different Types of Loans you Can Get with Bad Credit

Bad credit is stressful and can make you feel like you don’t have many options. It can hinder you from buying a home down to getting a certain type of loan. Many people with bad credit feel like there is no way out and no way to improve. However, this is not always true! There are still loans available that you can get, even with bad credit.

Get a Cash Loan

A very straightforward personal loan is to get a cash loan from a lender or even a private individual. Usually, you can expect that a cash loan will need some collateral. This can range from a check that has been post-dated or a transfer. Bad credit loans have guaranteed approval in Australia, so it might seem daunting to go to a lender, but it is worthwhile and usually has a positive outcome. It is possible (and maybe even more preferred) to find a private individual such as a relative. This is because they typically will not charge a fee or penalties for a missed payment. Just keep in mind that this can be a more delicate situation when it is someone you are close to.

Ask Your Work About Emergency Loans

If you are employed by a company, contact them about emergency loans. These are usually given out by your workplace for emergencies. Usually, this means that you can get an advance on your future paycheck or even take money from accumulated holiday pay. Not all companies offer this, so it’s best to check with your employer.

These loans may also be drawn upon if you have contributed to a retirement account of some sort. These will be a shorter-term loan, usually anywhere from 30-90 days.

Look at Government Loans

Sometimes the government will offer different types of loans. These can be for things such as a business or expansion loan, an education loan, or even a loan for natural disaster relief. You can check with different agencies to see what loans are offered and how you can get a loan issued to you. 

While there are a number of loans available for bad credit, these three seem to be a popular way to quickly get a loan. With a little bit of hard work and persistence, you can even improve your credit and open up even more possibilities.

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