If you previously went into debt, you have significant bills to pay, but you have a poor credit score, and you’re questioning whether you can secure a loan to save your financial situation, don’t panic!
Of course, a poor credit score plays a crucial role if you meet most lenders’ criteria to qualify for loans.
That being said, you can opt for a personal loan if you’re sure that you have a bad credit score but need to pay for your expenses or emergencies. Even so, having a poor credit score will mean you are charged high-interest rates, but at least you’ll be able to save your situation as you plan for better days.
But before we look at how to secure Payday loans with poor credit, let’s first understand what bad credit means.
What Bad Credit Means?
Credit bureaus have given most borrowers, at some point, a bad credit rating. And this in itself paints you as a delinquent when it comes to repaying loans, which makes most lenders cautious when dealing with your loan application.
Credit scores are often rated between 300-850, and therefore, if you have anything less than 580, you’ll be considered a loan risk. And that in itself means you’ve been defaulting in your previous loan payments, you have massive debts, and you don’t repay your loans on time.
How to Correctly Apply for a Payday Loan if you have a Bad Credit
1. Improve Your Credit Rating
Before anything, note that any slight credit file mistake will go a long way to ensure you don’t secure the loan. That’s why you need to give accurate information. Your credit files are your hope in the application process, and once it’s damaged, then it’s game over.
Similarly, ensure that you’re a registered voter and that you’ve participated or are ready to participate in the electoral process, as this helps the lender substantiate your address and identity. Furthermore, it’s the most guaranteed way to boost your credit score. You’ll only need to wait for around eight weeks for proper incorporation or update your credit file.
2. Meet the Lending Criteria
Different lenders have different credit requirements to fulfill before offering your a loan. And once you miss some of their criteria, it will be difficult for your application to be approved. So what do you do? Let’s look at some of the standards you should pass so it’s easier for you to secure a loan:
- Match their Fundamental criteria: Lenders will first surf through your default payments if you have any, and they’ll want you to have a source of income.
- Match their economic criteria: You should evaluate your financial situation and check whether you’ll be able to pay the loan off depending on your source of income.
- Prove that you are financially disciplined: Prove to the lenders that you are financially disciplined and don’t have massive unpaid debts.
- Pass their credit, fraud, and identity checks: Ensure that you effectively pass their fraud, credit, and identity assessment to be considered for a loan.
- Clear off your previous loans: Ensure you’ve paid all your due loans.
3. Shop Around and Get the Best Option
However silly it might seem, you need to shop a bit to boost your credit rating before applying for a loan. Note that the mere fact that you’ve applied for a loan, whether approved or not, is enough to reduce your credit rating and lower your chances of getting a loan in the future.
Alternatively, you can get yourself a loan broker to help you shop so that you meet the credit criteria. For example, loan matching services, such as Gday Loans offers very bad credit loans guaranteed approval Australia.
Once you have shopped effectively, you’ll be connected with the best lenders. This will massively boost your credit rating and save you some time.
4. Know Why You’re Borrowing
Generally, when borrowing anything from anywhere, you always state why you need it, and it’s no different in loan borrowing. If anything, the questions are more precise and strict. However, when applying for short loans, you’ll probably not be asked so many questions on the purpose of the loan as banks would. But you’ll still need to give an insight.
And mostly, your reason should range between clearing some bills or emergencies and not long projects. Similarly, you should prove to the lenders that you can repay the loan in due time in installments or on pay-off.
5. Borrow Just What You Need
If you’re facing a financially rough month, it’s easy to request more money than you need. Of course, you may want to sort all your challenges at once, but you’re better off applying for a small loan as it will get approved quickly.
And before you even select any amount, ensure you cut down your expenses and budget wisely so that you don’t take huge, unnecessary loans or you don’t get rejected during your application.
Get Your Payday Loan at Gday Loans
Gday Loans connects you with Australian lenders with a borrowing range between $300-10,000 that you can pay in a reasonable time frame. And with proper utilization of your application form, you can raise your stake by qualifying for high-end lenders.
Here’s our borrowing procedure:
Step 1: Avail The Required Documents
You’ll need to avail your bank statements, identification card, your payslip, and also your bank account before you fill out the application form.
Step 2: Apply
You’ll be issued with an application form which you’ll fill in your details online. Alternatively, you can visit any of the lender’s branches to apply.
Step 3: Application Review
Once you’ve handed in your application, the lender will quickly evaluate whether you qualify for the loan or not. Similarly, you might be required to hand in some additional information. Once your loan application is accepted, the lender will provide a loan agreement with the terms for you to accept or reject.
Step 4: Loan Disbursement
After acquiring the authenticated loan agreement, your loan will be transferred to you instantly.