Bad Credit Personal Loans By Jonathan Heart Share Tweet Pin Share There are a number of reasons that you may be suffering the burden of a poor credit rating in Australia, and it can very frustrating to find yourself basically cut off from dealing with any of the main stream credit suppliers. Some of the reasons for your current poor credit rating may be credit card defaults, utility bill defaults or maybe even a past bankruptcy. There is no doubt that these conditions will hamper your ability to obtain personal finance but there are certainly still options available to you if you find yourself in this situation. There are a number of financial institutions out there that will take on the risk of lending money to people with a credit rating that is bad but this comes at a price, and that price is generally a well above average interest rate. The type of companies that will offer personal loans to individuals with poor credit in Australia are typically smaller companies that specialize in individual service and are not one of the main stream banks and lenders you may have heard of.Even with a terrible credit score it is possible to obtain finance in the range of $1000 all the way up to $30,000 depending on your ability to repay the loan and the extent of your negative credit history. You just need do what you can to show the lender you are not a great risk to them.It’s also worth mentioning that for the very reason that an individual’s financial circumstances often change, and can change quickly at that, some lenders will take into account your current ability to repay the proposed personal loan and ad less weight to any past indiscretions your may have had.To quickly sum it up, your chances of obtaining a personal loan if you have negative credit will come down to how well you can show the lender that you have changed your ways and that while you may have made mistakes in the past, you no longer represent a large financial risk to them.Bad Credit Personal Loans & Guaranteed ApprovalThere is a common misconception that people with a negative credit history can simply find a magical financial institution by browsing the internet, click a few buttons and be instantly supplied with as much money as their hearts desire. This is simply wrong. Financial institutions are businesses and if they were to provide money to anyone who asked for it they would not in business very long.To give yourself a much better chance at obtaining finance there are a few things you can do to make sure that any lenders you approach can see that you are heading in the right direction financially.Guaranteed Approval Is A Myth!Firstly you will need to have a job and show proof of a stable income. If you are currently unemployed or on Centrelink there are options available to you which you can find out about here. Collect all of your payslips and any other proof of income that you may have. If you are self employed you will need to provide your recent tax return statements. If you have any other form of income, including any cash income you may be earning make sure to include that also as any extra income you can show will all add up in your favour. If you have any outstanding credit card debt or any other form of loans start paying slightly more than the minimum month’s requirements to show that you are more than able to pay your current debts efficiently.Lastly, if you want to do everything you can to give yourself a chance at obtaining guaranteed approval for a personal loan with less than perfect credit, start a small savings account and put money into it as often as you can. If you are able to present both a steady history of saving money and paying more than is required off your current debts you will be in very good shape when applying for your loan.Using Personal A Loan To Fix Your Credit ScoreWhenever people first apply for personal financial loans in Australia with a poor credit history they are often shocked and put off at the interest rates they are offered. If you have a poor credit rating you the lender will increase the interest rate to match the amount of perceived risk they associate with lending you money.There are however, a few ways you can combat this depending on your current situation.Fixing Your Poor Credit RatingFirstly, if you already have one or more existing loans or credit cards you can pick the loan, or loans, with the highest interest rate and simply refinance it with the new personal loan you are offered with a high rate of interest. At this point you should work as hard as you can to pay of that debt. You can put any money you would have otherwise allocated to your savings account onto this debt to eliminate it as quickly as possible.If you don’t have any outstanding debts but say you wanted to borrow $5,000. Instead borrow the minimum amount you possibly can which will generally be around $1,000. Pay this loan off quickly over say 3-6 months while continuing to build your savings account.Both of the scenarios above will put you into the situation where you will have now successfully paid off a debt and your credit rating will have improved. Now you will be able to borrow more money and achieve a much lower interest rate as you have demonstrated that you no longer represent such a risk to the lender.Video On Monthly BudgetingBeing able to set a budget and manage your monthly cash flow will help you considerable when applying for any form of credit. The video below will give you a great overview of how you can create a monthly budget and manage your cash flow simply and effectively. Enjoy!