Bad Credit Loans & The 5 Main Causes for a Poor Credit Rating
Just because you have a bad credit rating doesn’t mean you are a bad consumer. Unfortunately, many banks don’t see it the same way. With thousands of New Zealanders joining the bad credit ranks, finding a personal loan is becoming harder than ever. Direct Finance Loans offers a solution – our specialized Bad Credit Personal Loans.
With our services there is no need to worry if you have bad credit. Our application process is quick and simple and one of our experienced staff will help you to apply for the bad credit loan which is right for you. We specialize in finding quick financial solutions and if you have a bad credit rating you are still welcome to apply.
Bank lending requirements have become stricter than ever. Every application is scrutinized and often rejected. It isn’t easy for a consumer to secure a bad credit personal loan – especially on short notice, this is why we have streamlined our application process so that we can aim to have the funds in your account within 24 hours.
We offer two types of Bad Credit personal loans: secured and unsecured loans. Even if you have bad credit, if you have a valuable asset such as a car you are eligible to apply for a $5,000 secured bad credit loan. We also offer unsecured bad credit loans up to $2,000. Both products can be approved within two business hours and in many cases have the funds in your account on the same day.
Many of our customers see a Bad credit loan as a stepping stone back to good credit. A personal loan can give you the money you need to pay off all your creditors or simply help you our when you are in tough situation and are struggling to obtain credit from the bank. By paying off your creditors you begin to re-establish good credit, and this is further improved should you make full and timely payments on the personal loan.
We have researched applicants who have applied with us for bad credit loans and have found the 5 main reasons they have found themselves with a poor credit rating.
1. Job Loss
When someone loses a job and consequently their income they generally still need to pay food and rent bills with whatever the remainder of their disposable income. Often loan companies who don’t have a fair hardship policy can be quick to list you with a credit reporting agency if you fall behind on payments.
2. Illness or Accident
Medical situations such as sudden illness or a car accident can cause many credit problems. Decreased finances from lost work can be a major factor in developing a bad credit rating. Illness and accidents can also cause unpaid healthcare bills which can be turned over to collection agencies.
3. Death of a spouse
The death of a spouse is a devastating event that can also cause the surviving member of the couple to have bad credit, The loss if a spouse decreases income and increased expenses such as medical bills and funereal expenses, and can easily cause the most honorable debtor to defaulting on his or her obligations.
Divorce is another common cause of bad credit. A spouse could be hit with child support obligations that exceed the amount of money the individual parent is earning. Legal fees for getting a divorce and custody battles can also impact on finances causing many to neglect their financial obligations.
5. Being irresponsible
Some people have bad credit due to simple financial irresponsibility. They might buy a lot of things on credit that they cannot really afford, this can sometimes get out of control causing some creditors to not get paid.
At Direct Finance Loans we understand that not everybody has a perfect credit history and this is why we off a bad credit loan. We aim to assist applicants who are having trouble obtaining credit and need a bad credit loan quickly.
To apply for a bad credit loan simply press the “apply now” button on our website and complete our simple online application. Once received one of our experienced consultants will assist you through the streamlined application process.