Home > FAQs About Jacaranda’s Loans for Debt Consolidation for Bad Credit
FAQs About Jacaranda’s Loans for Debt Consolidation for Bad Credit
Debt consolidation for bad credit
Is debt consolidation for bad credit on your list of things to do? You might be in a situation where you have multiple debts and multiple direct debits coming out to pay those debts. Quite frankly, this can be overwhelming, especially if you start to miss payments and the fees start to pile up. To make things worse, if you have a less than perfect credit score it might feel like the weight of the world is on top of you. It’s not the end of the world though because we have a solution. Consolidating debt saves time and helps streamline your finances improving the micromanagement of expenses. You can get a debt consolidation loan with Jacaranda Finance and roll several payments into one.
These loans are here to help you get back on your feet and put your bad credit behind you. Debt consolidation loans are personal loans used to pay off all your current debts then you’re just left with one single payment and interest. It can save time and reduce a lot of clutter and stress in your life.
What is a debt consolidation loan?
A debt consolidation loan is a personal loan taken to repay multiple debts and liabilities and thus combine all into one loan that offers more favourable repayment terms. It is a common practice to get new credit and consolidate debts. The primary objective of debt consolidation ranges from reducing the monthly burden of paying off multiple overdue bills to multiple different companies.
Consolidating debt does not end your previous loans but replaces several debts with a single loan. Since you are taking a new loan to buy off the older loans, this is also known as debt refinancing. Debt consolidation for bad credit is an integral part of personal finance and helps address high debt situations. With a lower overall interest rate, you can save money while repaying the debt load.
When can I debt consolidation bad credit?
Well right here at Jacaranda Finance of course! We’re the new lenders on the block who like to take a fresh approach to lending and bad credit. Unlike traditional lenders, Jacaranda will not solely assess your application on the basis of a credit check. Although we will always conduct a credit check, it’s your spending habits, relationship with money and ability to afford the loan repayments that we’ll mainly focus on.
Jacaranda Finance offers a better alternative to loans for debt consolidation for bad credit. It allows those with poor credit scores to borrow on terms equivalent to normal personal loans. We’ll look closely into your income and expense pattern rather than considering the credit score as the only factor in loan approval.
Advantages of consolidating your debt
There are several benefits from consolidating your debts into one repayment. Here’s a list of a few of those benefits:
Fewer payments equal less stress
When you consolidate your debts into one loan, you will only have to worry about making one repayment at a time rather than having multiple direct debits. For most people, this will lead to less stress and clutter their life.
You could save money as you’ll only be paying one interest rate
One interest rate is better than multiple right? You’re definitely not wrong. In the long run, you’ll most likely end up saving more money. In addition, this can help with reducing the number of fees and charges you incur for late or missed payments. This is because it’ll be easier to manage your money and make your repayments on time.
Pay off your debts faster!
Because of the streamlined nature of paying one debt instead of multiple, it could be easier to gather the money you need to completely pay off your debt altogether.
It could prove to be beneficial for your credit rating
Consolidating your debt could be very beneficial for your credit rating because it demonstrates your responsibility to manage your debt.
Will a debt consolidation loan hurt my credit rating?
A debt consolidation loan causes a temporary dip in your credit rating. Whether the impact is going to stay or reverse, it solely depends on your ability to address the debt issue. Here is how your loan to consolidate debt is likely to hurt your credit score.
- If you apply for a loan even for debt consolidation for bad credit, it leads to a hard credit enquiry which can cause a dip in your score.
- If you continue to amass debt, it may force the credit score to decrease even further.
- If you fail to keep up the loan repayment schedule, it will show on your credit report.
When you are committed to putting an end to your debt, however, and you repay your loan with consistency this will reflect positively on your credit report. As the debt witnesses a reduction, it is sure to boost your rating by credit agencies.
How can I consolidate my debts into one repayment?
A good way of doing this is jotting down all the debts you currently owe. Try to list them all from highest to lowest interest rate and which ones need to be paid off earliest. Total the amount you owe to work out how much you need to borrow. If you don’t think you’ll be able to afford the loan repayments on a loan that covers all of your debts then it may be a good idea to apply for a loan that will cover your most urgent and expensive debts.
What loans do we offer?
We’re glad you asked! Jacaranda offers three types of loans for debt consolidation for bad credit:
|Loan Type||Amount||Loan Period|
|Small unsecured loan||$300 to $2,000||12 months|
|Medium secured loan||$2,001 to $4,600||9 to 24 months|
|Large secured loan||$5,000 to $10,000||9 to 36 months|
What do I need to apply?
The loan application for debt consolidation for bad credit must furnish the following information to the lender.
- Personal/contact information
- Reason for the loan
- Internet banking credentials
- myGov account details (if applicable)
- Employment information
How can I apply for a debt consolidation loan?
Applying for a debt consolidation loan with jacaranda is super-simple. Just follow these easy steps:
Step 1: Apply online
Simply scroll up to the top of this page where you’ll find our loan calculator. Select the amount you’d like to borrow and the repayment period and hit ‘Apply Now.’
Step 2: Fill out the application
You’ll then be taken to our 100% online application form. You won’t be asked to jump through hoops in this section. You’ll just need to provide a few simple personal details as shown in the section above. This usually only takes a few minutes to complete. When you’re finished hit ‘Submit.’
Step 3: We’ll assess your application
Sit back, relax and let us get to work. Our team of experts will assess your application to determine if we can provide you with a debt consolidation loan. If you apply during AEST business hours then we could give you an outcome in as little as 60 minutes. If you apply outside business hours then you can expect us to get in touch first thing the next business day.
Step 4: Sign your agreement
If we approve you for a loan, we’ll send you a digital copy of your loan contract. Read through this agreement thoroughly and make yourself aware of any fees and charges for late and missed payments. When you’re happy, sign the agreement and send it back to us.
Step 5: Get your cash
Once we’ve received your agreement, we’ll transfer your cash straight away. You can even have the funds in your account in as little as 60 minutes (if your bank account is NPP enabled).
What are the eligibility requirements?
To get a loan for debt consolidation for bad credit, a borrower must:
- Have an active mobile phone number and email address
- Have Your internet banking set-up
- Be over the age of 18
- Have had a regular income for the last 3-months into a personal bank account
- Be an Australian citizen or permanent resident
Why should I choose Jacaranda?
- Quick, fast and convenient loan application
- 100% online loan application, processing and approval
- Instant banking enables the fastest loan approval and disbursement.
- Get an outcome in 60 minutes* and cash transferred in 60 seconds**
- The application process is the easiest and the fastest
- All fees and charges are based on Australian Securities and Investments Commission standards and clearly communicated
- No hidden charges. You are communicated about each and every type of fee and cost beforehand. There won’t be any addition of extra charge after the loan approval
- Cash loans on Centrelink payments
- We offer loans for bad credit
- Multiple factors are considered for loan approval
- Easier to get loans without a job or good credit rating
- No prepayment charges
- You can choose weekly, fortnightly or monthly repayments
- Restructuring of the repayment schedule subject to conditions and review of borrower’s request
- Complete privacy protection
People resort to debt consolidation for bad credit when they feel the need to reorganize their finances and reduce the time and cost associated with debt servicing. They combine all their debt and bills into one and replace those with higher interest rates with one that imposes a lower cost. As you combine multiple credit card debt into a single personal loan, you stand to save money paid on the interest rate, reduce monthly repayment and even eliminate debt liabilities faster.
Apply for debt consolidation loans for bad credit now!
Did we answer all of your questions? If yes and you’re looking to save stress and reduce clutter by consolidating your debts, apply for a personal loan with Jacaranda Finance. We’re 100% online and can get you an outcome in as little as 60 minutes*.
If you have any further questions don’t hesitate to get in touch. Our customer service team are super-helpful and are always looking to make your experience with us as hassle-free and as seamless and possible.
*If you apply during regular AESt business hours
** Subject to NPP enabled bank accounts