Need a secured bad credit personal loan? Get started with Monzi. Apply for a secured personal loan up to $15,000. Bad credit welcome. Apply.
Secured bad credit personal loan
So, we’ve covered secured loans and bad credit personal loans. In other words, it’s a loan product offered to bad credit borrowers that must be secured with an asset. Simple, right?
With this, if approved, you can borrow a lump sum cash amount today. At Monzi, we work with lenders who may offer secured loans from $2,100 to $15,000. From there, your lender divides your costs into a series of even repayments over terms ranging from 13 to 24 months. Best of all, you may have the option to make either weekly, fortnightly or monthly repayments.
Finally, as the loan is secured, there’s an element of risk. You’re potentially putting your vehicle, boat or caravan on the line because if you default, repossession may occur. As a result, it’s important not to apply without first giving it proper consideration. Evaluate your finances to determine how much you can afford to borrow and repay. Consider debt consolidation loans if you have existing loans. Read more about debt consolidation and debt consolidation loans here. Learn more about personal loans bad credit instant approval here.
Is it easier to get a secured loan with bad credit?
If you have bad credit, lenders usually view this as a sign that you may be unreliable. After all, it typically reflects a history of missed repayments or other credit-related mistakes. While Monzi does know many lenders prepared to consider loans for bad credit, if you are willing to secure the loan, then this can undoubtedly boost your chances of approval. Learn more about fast cash loans bad credit here.
By guaranteeing the loan, your lender has an avenue to recover their losses should you fail to meet your repayment requirements. As a result, the risk of lending money to you may be significantly reduced.
That said, you must still demonstrate that you are earning sufficient income to comfortably cover your current obligations and the loan repayments. As a result, while a willingness to secure your loan may be looked upon favourably by lenders, approval is not certain.
Are secured loans just for people with bad credit?
Not at all.
Secured loans are a common credit product that lenders may offer to Australians from all walks of life. Not only that, but secured personal loans come in many different forms too. For instance, car loans and home loans are both examples of secured loans.
Given this, don’t get caught up thinking that secured personal loans for bad credit are the only product available. If you’re in a secure financial position and have good credit, then you can apply for a secured loan too. It doesn’t matter whether you need cash loans for car repairs or want to renovate your home, there could be a secured loan out there for you.
Apply today with Monzi for secured loans up to $15,000. Read more about bad credit loans australia guaranteed approval here.
What happens if I don’t repay my secured personal loan with bad credit?
If you fail to repay your loan, then your lender may take steps to repossess the asset you used as security. While this is usually a last resort and there are protections in place for borrowers, you must do what you can to avoid these situations. In other words, before applying, ensure that you can comfortably manage your loan repayments.
To learn more, Moneysmart has provided an extensive breakdown outlining everything that you need to know about repossession. Check it out today to ensure you know your rights and how repossession may occur.
I cannot apply for a secured personal loan: are there alternatives?
If you do not own an eligible asset, then, unfortunately, you cannot apply for a bad credit secured personal loan. This is non-negotiable. If you would like to borrow more than $2,000, security is a requirement. Luckily, there is an alternative.
At Monzi, we work with lenders who can offer unsecured personal loans for bad credit Australians too. As a result, if you find yourself at a dead-end, then this option may be worth considering. While you won’t need to provide security, the downside is that you are limited in the amount you can borrow. As a guide, Monzi’s lenders can only offer unsecured loans from $2,100 to $2,000.
So, while a secured loan may be off the table, an unsecured loan could be a handy alternative. Unfortunately, though, an unsecured loan may not adequately cover your cash need.
Can I get a bad credit secured personal loan with a guarantor?
Typically, you cannot.
On home loans and car loans, a guarantor is a close family member who uses the equity in one of their assets to secure your loan. This is most common on low deposit home loans as the borrower can avoid paying lenders mortgage insurance. However, guarantor loans can be risky, given that this family member is putting their asset on the line for you. As a result, you must be sure that you can afford the associated repayments.
Unfortunately, though, this won’t be an option with personal loans. Instead, if you apply for a secured loan, then you must use an asset that is registered in your name. If you are unable to do this, an unsecured loan may be your only option.
What about secured loans no credit check?
If you’re a bad credit borrower, you may want to avoid a credit check at all costs. After all, you may fear that if your lender sees your past mistakes, then they may deny your application straightaway. While this is understandable, you must note that most lenders won’t offer no credit check loans.
In most cases, lenders assess a borrower’s credit history to determine their creditworthiness. This will be unavoidable and is simply part of a lender’s assessment process.
In addition to this, as the amount you want to borrow increases, credit checks may become more important. While some lenders may offer small loans with no credit checks, if you are looking to borrow a large sum (e.g. large personal loan, car loan or home loan), then lenders want to be sure that you can repay the money you borrow. As a result, you may need to show that you have been a reliable borrower in the past and the repayments would fit with your budget.
Finally, remember that Monzi works with lenders who may consider bad credit applicants. In other words, credit checks won’t be the only factor at play. Lenders will consider your complete financial situation to determine if they should offer you a loan.
Easy secured loans for bad credit: where should I begin?
Monzi knows plenty of lenders who may consider offering bad credit secured personal loan. So, if you’re in a pickle and need fast cash today, why not apply?
Our quick and easy lender-finder could make things a breeze. Apply and you may be matched with a lender in just 60 minutes. Best of all, with loan amounts ranging from $2,100 to $15,000 and both secured and unsecured options on offer, there could be a loan that suits your needs.
That said, while we do endeavour to match you with an understanding lender, we cannot guarantee if your application will be approved. Ultimately, your lender will conduct an assessment to determine if a secured personal loan with bad credit history would be right for you.
Are there other types of secured loans?
While we’ve covered secured personal loans extensively, other examples of secured loans include car loans and home loans. With this, these loans will operate in the same way as a standard, online personal loan.
If you borrow money to buy a car or home, it will then be used as the security on the loan. In other words, it’s there to guarantee the loan. As a result, if you fail to keep up with your loan repayments, then repossession may become a reality.
Finally, note that car loans and online home loans will usually be a more significant financial commitment than a personal loan. As a result, you must consider your personal situation before applying.
How do I compare secured loans?
Monzi’s lender-finder could bridge the gap between yourself and a lender in just 60 minutes. However, if you decide to go it alone, then comparing personal loans is often a wise choice. That way, you may find the loan that best suits your needs and objectives.
To get you started, key points to compare include:
- Costs: lenders charge interest on the money you borrow. Moreover, they may apply certain fees too. To get an idea of your annual loan costs, check out the comparison rate. It’s a percentage figure that represents your annualised costs. In short, it’s the easiest way to compare loans side-by-side when you’re after a great deal.
- Terms: if you borrow money, ensure that you can repay it over an affordable period. In other words, repaying a $2,000 loan may be more manageable over twelve months compared to six months.
- Credit provider: confirm that the lender holds a current Australian Credit Licence. Moreover, investigate past borrower experiences by reading reviews online.
Is a secured loan right for me?
As we’ve covered extensively, secured loans can be risky. After all, if you fall behind on your payments, then you could potentially lose your vehicle or other asset used to secure the loan. Given this, before applying, you must assess your financial situation.
As a guide, important questions to ask yourself include:
- How much do I earn each week?
- What are my current expenses?
- Why do I need to borrow money?
- Do I have enough savings to cover this shortfall?
- What repayment amount could I afford?
- How much do I need to borrow?
- Are there any alternatives?
Finally, to get a better understanding of your current financial situation, check out Moneysmart’s free budget planner. It should help you determine where your money goes each month.
Can I get cash loans secured against my car?
As we’ve mentioned, a loan against your car that is paid off will be one of the most common examples of a secured loan. Given this, if you need to get a loan today and have a vehicle registered in your name, then you’re welcome to apply with Monzi. We could match you with a lender offering up to $15,000 today.
That said, keep in mind that the car must meet the lender’s requirements. With this, it must have sufficient value to cover the cost of your loan. In other words, a car worth $2,000 may not be used as security on a $15,000 loan. In addition to this, your car may need to be under a certain age. Contact a lender to determine their exact requirements.
Secured loans: experience the Monzi way today
Monzi is in the business of making your life a little easier. As a result, if you’ve got bad credit, but need a loan, then you’re welcome to apply. We work with lenders offering secured and unsecured loans from $2,100 to $15,000. Best of all, the lenders in our network often accept a range of different circumstances including poor credit.
So, when you’re ready to begin, we’d love to hear from you. You can click “Apply Now” or scroll to the top of the page and use Monzi’s loan slider to apply now. From there, we’ll take over and do our best to put you in touch with a great Aussie lender.
It’s quick. It’s easy. Apply today.