How to Get a $2000 Bad Credit Loan in Australia

People with bad credit scores are typically seen as huge credit risks to most lenders and big financial institutions. They’re considered “untouchable,” and lenders would prefer not to give out any loans for fear of not getting back their money.

For an individual with a bad credit score, the chances of getting a conventional loan in Australia are very slim. The same is applicable to individuals with no credit score at all. However, this isn’t to say that you can’t secure a loan even if you fall into any of the categories listed above. 

If you happen to have bad credit or no credit score, you’re eligible for what is known as “bad credit loans.” These are loans that can be given to borrowers with credit score issues.

In this article, we’ll learn about bad credit loans, how they work, as well as what you need to get a $2000 bad credit loan in Australia. 

What this article covers:

What Is a Bad Credit Loan?

2000 bad credit loan

A bad credit loan is a loan granted to an individual with bad credit or no score history. In securing a bad credit loan, certain factors have to be considered, such as:

  • What the loan is for.
  • How much one can borrow at a time.
  • How quickly the loan is granted.
  • The interest on the loan.
  • How soon the loan must be repaid.

Of all the factors considered, the intent behind the loan application is usually the most important. Most lenders in Australia would like to know why you need the loan in the first place.

So, as a borrower, it’s important to be explicit about what your needs are. You need to show legitimacy and urgency in your loan application. This way, you can influence the lender’s decision-making process in granting you the loan.

How Can You Get a $2,000 Bad Credit Loan in Australia?

Even with bad credit, you can still be eligible for as high as a $2,000 loan in Australia. At OrangeLoans, the criteria are different from one lender to another, but the basic requirements needed to get a $2,000 bad credit loan are:

  • You must be an Australian citizen or a Permanent Resident.
  • You must be gainfully employed for no less than six months or self-employed for at least a year.
  • You must be 18 years or older.
  • You must have a yearly income base of not less than $45,000.

Once you’ve satisfied all these conditions, you can go ahead and apply online. You’ll be taken through the basic registration process, where you provide your details and proof of eligibility. Next, you’ll be assigned a financial expert who’s going to guide you on the loan application process and discuss your options. After this, you simply wait for the approval.

However, one of the best ways to increase the chances of getting approved is to add a co-signer to your loan application. Having a co-signer has a few benefits, such as:

  • Can act as a guarantor of sorts and show good standing on your part.
  • May help to lower the interest rate on a loan.

Depending on your loan application, you can qualify for a $2,000 bad credit loan within the space of 24 hours. Others may take as much as a few business days or a week, depending on the urgency of the loan. 

Costs of Bad Credit Loans

2000 loan with bad credit

Most bad credit loans have a 20% interest on any amount borrowed. There’s also a 4% monthly fee for the entire lifecycle of the loan. Note that the terms of repayment may vary depending on the type of loan or amount borrowed. Usually, shorter repayment terms attract lower interest rates and vice versa.

Why Do You Need a $2000 Bad Credit Loan?

Now, let’s look at some of the common reasons for wanting a bad credit loan in Australia.

Medical Bills

Health issues can arise unexpectedly whether or not you’re prepared. Unfortunately, some of these health issues can run up quite a bill, especially in cases where intensive medical procedures are involved. These include surgeries, chemotherapy, etc.

Car Repairs

You can request a bad credit loan for any car repair and maintenance issues. The cost of repairs can get high depending on the nature of the issue. In such emergencies, it’s only right to apply for a bad credit loan.

Rent

You can apply for a bad credit loan if you’re experiencing rent issues. Sometimes, we might be due on rent, and with eviction in sight, taking out a loan may be the only option available to prevent embarrassment.

Furniture & Fittings

2000 loan bad credit

Bad credit loans can be accommodated if you need to furnish your new home. Instead of waiting until you have a proper budget, a loan can help speed up that process.

Renovations

Renovations around the house can cost a pretty penny and put a big dent in your finances. Instead of charging them directly to your bankroll, you can take out a bad credit loan to help in such situations.

Vacation

Yes, you can apply for a bad credit loan to go on a vacation. Vacations are “life,” and at some point, we all crave one even when we don’t have enough saved up. Many bad credit loan lenders give out vacation loans to borrowers on agreed terms.

Tuition

As a college student, you’ll find yourself many times hard on cash, but the school won’t stop on account of this. One fast way to sort tuition and other miscellaneous fees is to apply for quick loans even if you don’t have a credit score history.

Excursions & Road Trips

You can apply for a bad credit loan for your kid’s high school excursion or road trip. Most of these trips can rack up costs, so it’s best to take a loan.

Veterinary Bills

$2000 loan bad credit

Those trips to the vet clinic don’t come cheap. Nonetheless, we still need to put our pets through regular medical checks to ensure they remain healthy. Small loans can help out in times like this, even when you have bad credit.

Logistics Costs

Whether you’re moving to a new home or simply hauling goods and services from place to place, you’re going to incur some costs along the way. In emergencies like these, you can take out bad credit loans to ease the transition.

FAQs

How Is My Credit Score Measured? 

Your credit score is determined based on a number of factors. These factors may include your transaction history, your debit and credit base, and how responsive you are at offsetting debts. Other things considered are your financial growth rate, your asset base, the number of bank accounts you have, etc.

Credit scores play a huge role in the life and career of an individual. Some employers may even ask for your credit score sheet before employing you. In the grand scheme of things, a low or bad credit score will limit your chances of making certain growth-based decisions, such as starting a business or owning a property.

Why Do I Have a Bad Credit Score?

Many factors can contribute to your having a low or bad credit score. Some of them include:

  • Failure to offset debts.
  • Being late on utility bills.
  • Missed payments.
  • Co-signing for a family member or a friend with bad credit who defaulted on the loan.

What Do Bad Credit Lenders Look At?

$2000 loans for bad credit

Instead of looking at the credit score of a potential borrower, the bad credit lender will first examine the type of loan. These loan types can range from personal, auto, and student to mortgage loans.

Next, they consider things such as the borrower’s job, transaction history, and income or salary history commensurate with the amount applied. 

Note that; of all the types of bad credit loans, personal loans are usually the most considered.

Conclusion

Having a bad credit score shouldn’t be the end of the road for you, especially in those urgent cash emergencies. Bad credit loans are your last option when you need money and payday is still far ahead. Thankfully, the requirements are minimal, and anyone, irrespective of age, income base, and economic status, can secure one.

Was the guide helpful? Check out these extra resources to delve deeper: