Are Bad Credit Loans Real?

By Angela Monroe - April 10, 2018

A number of lenders offer bad credit loans in Australia. One of the most common questions that people ask is ‘are bad credit loans real?’ Are such loans really a safe bet for car loans or personal loans, especially if you have bad credit?

It’s not at all surprising that you’re sceptical about such loans – after all, there are so many scams around. Moreover, big banks and big lenders are often not the ones offering bad credit loans. As such, you need to be careful – there’s nothing worse than getting fished into a scam when you’re suffering from bad credit.

You’ll be glad to know that many bad credit loans offered here in Australia are real, and there are a number of genuine lenders who offer them. You also need to understand that the interest rates of such loans are usually higher than normal loans. The loan amount, loan conditions, and repayments also vary from one lender to another.

If you have bad credit and you’re wondering are bad credit loans real, then you need to know how to identify scams. Today, we’ll take a look at some of the things you should consider when looking for bad credit loans.

Check the lender’s details

The lender must have a registered Australian Credit Licence to legally provide credit products in Australia. If you are using a car finance broker, they will also have an Australian Financial Services licence which gives them the authority to provide financial services advice.

You can check to see if the financial service you are thinking about using has the correct licences on the Australian Securities & Investment Commission (ASIC) website. Their licence numbers should be clearly displayed on their website and any communication such as documentation or emails.

When it comes to a scam, the scammer will rarely ever leave real details behind. This is one of the easiest ways to identify a bad credit loan scam. If the lender offering a loan is new in the market without any reputation, then you should definitely be wary.

Sometimes, a scammer may post a phone number or an address to look genuine. Don’t take this for granted. Make sure to check if the location exists and make sure to call and verify their authenticity.

Consider loan details carefully

Some expert scammers go to the extent of building a fake profile. In such cases, it can be a little difficult for you to trust a lender as you cannot rely on unknown testimonials.

If you find yourself in such a situation, the best way to determine credibility is by considering loan details. In most scams, the lender will promise to disburse the loan amount but only after you pay an advance fee. This is a telling sign that you should avoid the lender as advance fee loans are illegal. Legitimate lenders will never require you to make any advance payment to lend you money.

Other things to consider

Steer clear of lenders who ask for your bank account details or financial information before providing you with any written documentation. Genuine lenders will always provide you documents of a bad credit car loan before asking you for details.

Also, if a lender requests a lot of personal information from you, then you should be a little wary. Bad credit loans usually require you only to provide your financial records and not your confidential information.

Before you jump into applying for a bad credit loan, check the interest rates. If the rates are significantly higher than normal car loans, then you should look for another lender.

How to ensure you’re not being scammed

Scammers always come up with new tricks to fool people. It isn’t always easy to tell who is a scammer and who isn’t. To ensure that you’re not being scammed with a bad credit car loan, you should hire professional finance consultants.

Professional finance consultants deal with bad credit loans on a regular basis. While they have a good idea of these loan products, they also have access to a number of genuine lenders. By taking the help of a professional consultant, you can reduce your chances of being scammed dramatically.

Why Loans for People With Bad Credit is your best bet

At Loans for People With Bad Credit, we’re an established finance consultant specialising in bad credit loans. Based out of Adelaide, we have over 35 years of experience in the industry. Moreover, we have access to over 30 trustworthy Australian lenders including Adelaide Bank, ANZ, Capital Finance, and Heritage Bank.

When you seek our advice, we will assess your credit situation and match you to the right lender for your needs. Our expert consultants know what lenders are looking for in a loan application. They will even help show that you are financially responsible in your loan application and negotiate with lenders on your behalf.

There are several steps involved in getting a bad credit car loan approved. These include getting your bank statements in order, reviewing your credit history for errors, consolidating debts, and showing viable income streams. We can help you through all of these steps. Our expert consultants will offer you the best advice and improve your chances of getting a loan approved.

Obtaining bad credit loans can be difficult – no one understands this better than us. That’s why we take the time to understand your individual situation, assess your circumstances, and offer you the support you need. You can trust that we’ll connect you to a genuine lender who’ll offer you a loan on bad credit. We’ll also make sure that the regular loan repayments are manageable for you.

Apply for a bad credit loan with us today!

If your credit situation isn’t the best, then it makes sense to ask ‘are bad credit loans real?’ There are shady lenders offering such loans, and you should be wary of scams. Your best way forward is to take the help of professional consultants such as Loans for People with Bad Credit. Our finance consultants will assess your financial condition and match you to a genuine lender.

With us, you can rest assured and relax while we find the best lender for your requirements. We’re not just brokers – we’re professional finance consultants.

So, give us a call to take to one of our bad credit loan specialists today!

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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