Don’t sweat bad credit with a personal loan
If you need a personal loan, we can help you get approved!
Bad credit? Don’t worry
Bad credit might be an impediment in life, especially when it isn’t your fault. Defaults on your credit history can happen due to dodgy housemates, unforeseen accidents, and other misfortunes. That shouldn’t mean you’re punished for it forever. Our consultants help dozens of Australians with bad credit get approved for a personal loan. Whether it’s to consolidate higher-interest debts, urgent purchases or for something special, you can trust the team at Savvy to help you with the entire process from start to finish, assessing your potential for not only approval, but also a competitive rate as possible, tailored to your situation.
We shop your loan around to over 25 of Australia’s leading lenders and banks to ensure you get a fair deal. Your consultant will give you an honest assessment of your financial situation and tell you if this solution is suitable for your finances.
Forge ahead with better finances
If you are stuck in a “debt trap” – paying off credit cards with other credit cards, balance transferring while spending more – a personal loan could help you out of the debt spiral. According to credit reporting agency Veda, 600,000 Australians are at-risk for credit default. This means you are far from alone when it comes to having a poor credit history. Savvy understands this, and knows that a personal loan for debt consolidation purposes can give you a leg up out of debt and into good financial standing.
By paying off debts with a lower interest loan (by comparison), over time your credit history will reflect a better financial standing and a “clean” record. Before you apply, you must understand any risks involved. Savvy are responsible lenders and will tell you any obligations you have up front. Our consultants will treat your application with the utmost care and attention. That’s the Savvy way.
Searching for bad credit personal loans? Look no further
Compare a range of personal loan offers from top lenders. We offer competitive rates, even with customers with bad credit
What our customers say about their finance experience
Comparing lenders can help you get great rates and save thousands!
Have questions about bad credit personal loans?
Get the answers you need from our bad credit loan consultants
Your helpful guides to bad credit personal loans
More informative guides about bad credit personal loans
Using personal loans as consolidation
Though many of us consider personal loans for use on cars, holidays, renovations, or family emergencies, bad credit personal loans can also be used as consolidation loans. Once approved, you can pay off smaller, high-interest debts in one “hit.” This means you only pay one monthly payment instead of many others. In some cases, a broker can negotiate with your creditors to facilitate the loan without the risk of paying early payment fees or other charges associated with sudden payments.
Beware the payday loan
A “payday” or “quick cash loan” is a loan product that offers amounts up to $2000, perhaps even $5000 wired to your bank account within a couple of hours – or even less time than that. Though it seems tempting, the interest rates are punitive, even compared with bad credit personal loans. Most payday loans charge a 20%p.a. interest rate. This is the legal maximum, but they also slug you with a 4% monthly account-keeping fee. If you only borrow $500 from a payday lender for a term of one year, you will have paid back $840 in total. If you default on a quick cash loan, a provider may charge up to 200% of the total owed + collections expenses.
Personal loan over a balance transfer
Balance transfers can be a good way to get out of a large credit card debt. However if you do not pay off the balance – or even add to it – within the zero-interest period, this can leave you worse off. Here’s why: personal loans are, on average, much cheaper than credit cards, especially in terms of interest rates. Credit card interest rates average around 17-19% p.a. A personal loan – even a bad credit one – could end up cheaper over time. Instead of making minimum monthly repayments, which ensures you incur interest, paying off a personal loan will guarantee an eventual zero balance, which means you can leave your finances in better health compared with when you started
Can I get a secured personal loan?
Though most personal loan products are “unsecured” i.e., they do not have an asset the loan is tied to, some personal loans can be secured to a high-value asset such as a car or a home. This can increase chances of approval and lower your offered interest rate. However, a secured loan comes with risks for the borrower. If you default on your loan, your lender has the right to repossess the collateral to recoup the costs on lending you the money. If you have an asset you can use and feel confident to put it up as security, you can ask your consultant for more information on how to apply for a secured personal loan with bad credit.