Banks and conventional lenders have stringent lending criteria, thus, availing a loan from one of these lenders with bad credit is hard. This is where lenders who specialise in offering bad credit cash loans turn out to be a practical alternative – one such lender is the pawnbroker. A pawnbroker or pawnshop offers cash loan even if you have a bad credit through secured loan. You will have to bring an asset of value for placing as collateral so that your bad credit loan gets approval. This collateral could be any asset – it could be a car, a motorbike, a boat, a truck or any other asset that the lender accepts.
Major considerations for availing secured cash loan with bad credit
- You’ll need to go through the offerings of bad credit loan providers and evaluate the interest rates, repayment terms, any other terms including fees.
- Check how much you’ll have to repay every month and if the repayments fit your budget.
- Suppose, you think that you can manage the repayments then you can proceed for availing the loan.
- When your loan is approved, you’ll have to accept the terms and conditions before the lender can give you the loan amount.
Advantages of Secured Bad Credit Cash Loans
- Loan amount – the minimum and maximum loan that you can borrow differs from one loan to the other. The maximum loan amount that you can borrow is worked out on the basis of your collateral along with your ability to pay back the loan amount.
- Interest rate – you’ll normally have the choice of a fixed or variable rate, but as these are bad credit cash loans, you can expect the rate to be higher compared to other forms of credit.
- Repaying options – typically, you can pay as you go or you can pay the whole loan amount at the end of the loan term, which is normally three months. And if you want to extend the term, you will need to request for the same in advance before the loan term expires.
- Build your credit – when you avail a bad credit loan, it will give you the means to repair you credit history. You can achieve this by making sure that you make your ongoing payments on time.
What are the eligibility criteria for applying for secured bad credit cash loan?
- When it comes to applying for secured bad credit cash loan from a pawnbroker, you must have acquired at least eighteen years of age, you must be an Australian resident and need to own the asset completely.
- You’ll require producing your photo identification and registration or asset ownership papers.
Thus, a pawnbroker or pawnshop can provide you with same day fast cash loans in Sydney.