All Topics / Finance / Got bad credit, but need small loan

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  • Profile photo of lstreetlstreet
    Member
    @lstreet
    Join Date: 2006
    Post Count: 22

    Hi All!

    I currently have  one bill left ($3,500) until i'm debt free!  Yay!  But my problem is that it is charging 19% pa.
    I was wondering if it would be possible to get a loan for this amount if i had a bad credit rating??? The bad credit came from a $700 hire purchase item which i had paid off over 1 year ago????

    Any information would be appreciated.

    Profile photo of pilihppilihp
    Member
    @pilihp
    Join Date: 2006
    Post Count: 26

    Hi Istreet,

    Think yourself lucky you are only being charged 19% pa. The costs involved in establishing a new loan would outweigh any benefit of a cheaper interest rate on such a small amount.

    Profile photo of r_windowsr_windows
    Member
    @r_windows
    Join Date: 2007
    Post Count: 12

    im pretty sure u can take out  acertain loan with a honeymoon period where you pay no interest. therefore you use this to pay off the $3500 and then save and budget to make sure you pay off the honeymoon loan within the time period given (from memory 6mths) to avoid costly interest rates.

    check it out, think it was mentioned in the last issue of API magazine

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    with bad credit it will be extremely difficult to obtain a credit card or personal loan. What about getting a loan in a partner or friend's name. You could get one credit card, do a cash withdrawal and pay your loan out, then get another with 6 months interest free and balance transfer it over to them.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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