How to get a loan with bad credit

This is advertiser content for Nifty Personal Loans.

Do you have a bad credit score? If that's a yes, you might be thinking that getting a loan is impossible. While it can be challenging, there are still several options you can take to increase your chances of getting a loan with bad credit.

Before you apply for a loan with bad credit, it is helpful to understand what a credit score is and why it affects your ability to borrow money. A credit score (or credit rating) is a number that sums up your financial track record when it comes to borrowing money. It is used by lenders to determine a borrower's credit-worthiness.

Simply put, the higher your credit score is, the more likely you'll be able to borrow money from a lender. There are many factors that might affect your credit score, such as your repayment history, the number of loan applications made, defaults, or bankruptcies.

If you have a bad credit history, you might be worried that you won't get approved for a loan. In Australia, lenders are legally required to follow responsible lending obligations, which means they can't offer a loan to someone they don't think can afford it. However, there are some lenders who offer loans to those with a less than perfect credit score.

For example, Brisbane-based lender, Nifty Personal Loans, can offer same day loans for people with bad credit nation-wide. They can sometimes look beyond credit scores and look at a range of factors, including financial commitments, income, and spending habits, to determine whether someone is eligible for a loan.

Another option for getting a loan with a bad credit score is to apply for a secured personal loan. A secured loan means that the loan is 'secured' against an asset you own, such as a car.

When applying for a loan, it's always a good idea to check what your credit score and history is. One of the ways you can do this is by requesting a credit report from a credit reporting bureau, such as Equifax, Experian, and Illion. It's important to remember your credit score doesn't stay fixed and can change over time, especially if you make improvements.

There are a few things you could do to improve your credit score, such as meeting repayments and paying bills on time, limiting the number of loan applications made, and lowering your credit card limit.

Remember that if you make your bad credit loan repayments on time, it may help improve your credit score and your chances of borrowing money in the future.

This is advertiser content for Nifty Personal Loans.