What Are Small Bad Credit Loans?

By Angela Monroe - September 11, 2018

Small bad credit loans

There are lots of reasons why you might be considering getting a small bad credit loan. Whether you need to pay for an unexpected bill such as hospital treatment or dental work, or you simply need some extra cash to help you out in the short-term.

We understand that getting any type of loan with bad credit can be tricky – there are documents to fill out and often questions that you don’t necessarily have the ‘right’ answer to. Finding the right lender for a small bad credit loan will help to make the process much smoother and could help to save you time, money and stress in the long term. We can help you find a small bad credit loan that suits you.

What is a small loan?

Generally, a small loan is considered to be any loan that’s less than $5,000. It’s not as big as a mortgage or a car loan, but it’s usually a loan that you need fairly quickly and can be used for unexpected bills or when you’re really tight for cash in the short-term.

A small loan can be a good, practical way to make ends meet in the short-term, as long as you don’t over stretch yourself financially and are certain that you can pay back the amount in full at the end of the loan term.

Interest rates are generally fairly high on small bad credit loans, so you can expect repayments to be higher than with other loans. Due to the relatively short-term nature of the loans though, you should only be paying small bad credit loans back for a short amount of time.

How to get a small loan with bad credit

Whatever your reasons for having bad credit, you should still be able to apply successfully for a small loan. We can help you find a lender who has experience working with people with bad credit to make the process easier for you.

To get a small loan with bad credit, there are some basic requirements you’ll need. These include:

Identification

This could be a driver’s licence or Medicare card. The type of ID required may depend on the lender so having a number of different ID available will help to speed up the process.

Proof of income

You need to be able to show that you will be able to repay the loan in full by the end of the loan term. Proof of income could be shown through your payslips from your job or bank statements.

Australian bank account

You need to have a bank account in Australia and it must be registered in your name. This is where the small loan amount will be transferred to if your application is successful.

You should also be prepared to offer details such as your full name, address, phone number and email address if you have one.

What’s the process when getting a small loan with bad credit?

It’s easy to panic and apply for a loan without thinking carefully about how much you need. But you should budget accurately and think through exactly what you need to borrow and consider the amount that you can realistically repay.

Once you know how much you want to borrow, you can apply for a small loan with bad credit easily online or through expert brokers.

Applications can be done online in a matter of minutes and you’ll often find the approval comes quickly too. Once your loan request has been approved, transfer of funds can be done in as little as two hours. When making your application, always make sure you have all the correct details to save time. If you are not confident making the loan application yourself, ask for expert help.

Increase your chances of getting a small bad credit loan

It can be tricky to do if you’re applying for a small bad credit loan due to unexpected circumstances, but it’s generally best to make sure your credit score is as strong as it can be before you make your application. If you don’t have a fixed address or have recently lost your job, it may be harder to get approval for your small bad credit loan.

Finding the right lender will really help to improve your chances of getting a small bad credit loan. Many of the larger lenders or banks are less likely to approve loans for people who have bad credit, so finding a specific lender who works with people who have bad credit will help you to find the right loan for you.

Always take care when making your application. Simple errors such as incorrect dates or spelling mistakes can be costly in terms of time delays – especially when you need the money as soon as possible.

Getting a small bad credit loan with Loans for People With Bad Credit

We pride ourselves on our years of experience working with people who have bad credit, and we are keen to hear from you to find out how we can help you to get the right small bad credit loan for you. By helping you each step of the way, we’ll make the process as easy as possible.

Find out how we can help you get a small bad credit loan that suits you.

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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