How to Get a Loan If You Have Bad Credit

In today’s world, many people have bad credit. The credit card companies have a business model that actually encourages people to go into debt. They make it easy for almost anyone to apply to get a credit card and then they charge enormous interest rates. This inevitably results in a lot of unsecured debt and banks making plenty of money.

Are You Trapped by Bad Credit?

If you’re applying for a home loan or any kind of personal loan, the big financial lenders will forensically analyse your credit history. The problem is that all it takes is for you to make one late credit card payment, and your credit history will be negatively affected.

The biggest reason for this is that the big financial lenders are now so risk averse that there is very little room for flexibility. They will look at absolutely everything and make an assessment that mitigates their risk. This includes even a hint of poor credit, late payments, and unsecured debt in the form of car loans and so on.

Due to the global financial crisis and the recent Royal Commission by the Australian Government into bad banking behaviour, the big lenders are now very risk averse. In some ways this is good because they are behaving as they should be, but it is also bad for many customers who might otherwise have access to personal loans.

What Can You Do About it?

It makes good sense to pay down debt as quickly as possible, but this is not always possible when you need a personal loan quickly. The good news is that companies like Universal Finance Australia make it much easier to get a loan.

Where other big lenders will automatically refuse to give out money for a loan, the smaller independent lenders will more likely entertain rubber stamping such a loan. This is good news for anyone who has a bad credit rating.

How Is This Possible?

The fact is that the vacuum in the money lending market generated by the risk aversion of the big banks has given independent and smaller players a real opportunity to make a mark in this area.

Where these smaller lenders excel is in giving people a chance to secure loans that they would otherwise not currently be able to secure from the big banks. The loans cover these kinds of areas:

  • Home loan lending
  • Commercial loans for businesses
  • Personal loans


It’s not getting any easier to secure a loan from one of the big banks, but the good news is that smaller players have stepped up to fill the vacuum left behind. Whether you need a home loan or a personal loan for buying a car or hiring more people for your smaller business, these independent lenders can help.



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