How to Get Very Bad Credit Loans With Guaranteed Approval in Australia

Credit scores are the primary requirement for taking out most loans. They tell the lender about your borrowing habit and can determine whether or not you get the loan.

With extremely bad credit, getting loan approval can be as hard as putting a nail on a concrete wall with your bare hands. And even when you get one, the terms might not be favourable.

However, you can get $300 up to $5,000 bad credit loans guaranteed. We’ll explain more about the process in this article.

What this article covers:

Is It Possible to Get Guaranteed Approval on Loans With Bad Credit?

Yes. Some internet lenders boast of providing guaranteed approval on their loans for those with bad credit. 

However, some lenders offering this usually require collateral to secure the loan. For instance, you’ll need to deposit a valuable item before borrowing from a pawnbroker. 

Meanwhile, other online cash lenders promise guaranteed approval on loans without security. So, you can take out a small loan only by completing their registration process, which typically takes less than an hour to complete. 

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Where Can I Get Guaranteed Loans With Bad Credit?

Several lenders in Australia guarantee small cash loans with bad credit and no paperwork. 

However, watch out for loan sharks. They offer easy loans to their target to rip them off with high interest rates and short repayment duration. Also, they’re not regulated, so no one checks their rates. 

So, ensure you’re getting your loans from legit sources. Some best places to get personal loans with bad credit guaranteed approval are:

Payday Loans

Payday loans are small loans you can get with a bad credit score. You also don’t need security to access them. However, payday lenders often promise guaranteed approval on loans to active income earners. 

To get a payday loan, you can sign up at the lender’s site, where you’ll need to submit your details. 

During the registration, the lender checks your income-earning report to confirm that you have an income source. This means you’ll have to supply a pay slip or any other document declaring your income during registration. 

After verifying this report, the payday lender guarantees you a percentage of your income in a loan. This is a fast means to get bad credit loans from direct lenders. 

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Online Cash Lenders

Online cash lenders are modern lenders with operations based on the internet. They boast of offering instant guaranteed loan approvals on small and medium-term loans. And they don’t check your credit score. 

Taking it further, online cash lenders offer unsecured loans without requiring documentation. While other lenders either require security or a financial document to check the borrower’s risks, online cash lenders go all out and help you skip those processes. 

However, some online cash lenders use a Continuous Payment Authorization (CPA) model to reduce the risk on their part. This means they can automatically take out funds from your account using a debit card (or credit, as the case may be) to repay your loans. 

How to Get Very Bad Credit Loans in Australia

To get extremely bad credit loans (with guaranteed approval), here are three steps you can take:

Find a Reliable Lender

By reliable lender, we mean a licensed lender operating under the control of a government financial agency. 

To find one, you can search through the several options online. But confirm that they’re legit by reading reviews about them on trusted review sites. 

Further, you can ask friends or family members for suggestions. They might be able to point you towards the options they use. 

Register

Visit the lender’s website to register your profile. You’ll have to complete a form with your personal details, tax identification number, and loan amount. In cases like payday loans, you’ll provide copies of your income statement. 

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Apply for Loan

After registering, the application should take less time. It should be as easy as choosing the loan amount and repayment duration. 

Depending on the loan type, you can get approval within 24 hours. 

Pros of Bad Credit Loans 

Bad credit loans come with several perks. Here are a few of them:

Quick Loan Processing 

Lenders that support bad credit loans have simpler application processes. In addition, loan approval takes less time when compared to regular loans from banks or other financial institutions. So, they might come in handy if you’re in an emergency. 

Convenience 

Since these loans are easy to get, you don’t have to spend long mornings cueing up to apply for a loan. You can get guaranteed approval on loans from the comfort of your home. 

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Cons of Bad Credit Loans

Bad credit loans aren’t all good. Here are some downsides you should know:

High Rates 

Lenders offering loans with no guarantor (collateral) often use high interest rates to cover the risks on their end. You can pay as high as 400% APR on loans as small as $100. So, consider these rates and read the loan terms while taking out a loan. 

Short Repayment Time

Bad credit loans usually have a short repayment duration. You can expect to repay your loans within one to three months. 

If you can’t repay them on time, you might take a new loan to repay the old one, putting you into a debt cycle. 

Conclusion 

Guaranteed approval loans are a real thing. You can get them even if your score breaks the scale to the negative. 

To get guaranteed approval on loans with bad credit, you should find a lender, register, and apply. However, ensure you’re comfortable with the rates offered to you before proceeding (beware of loan sharks).

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