It is sensible to keep away from personal loans if a person has a bad credit record. However, if one is in dire need of hard cash then only go for a Home Equity Loan which is generally cheap in rate and are extra lenient. If a person's credit report reflects terrible track record of judgments or defaults, then he is bound to face problems in sanctioning a personal loan. But if you are a owner of a land or house, an Equity Loan can be a way of getting back to tension free lifestyle as this type of loan allows you to borrow against property up to 80 % of one's property worth. It permits you to save extra funds so that you can make use of it in whatsoever you wish for. This loan is perfect for those who want some money to expand their house by constructing a new kitchen or bathroom and who are planning to take a long-awaited holiday or buy a dream car. One can also borrow a Home Equity Loan to settle payment of credit card or other unpaid amounts to decrease one's monthly expenditure. Rate of interest of this loan is changeable as it depends on credit status. Even the monthly repayment amount also depends on the sum borrowed and tenure of the loan. Yet, like all troubles there are certain means by which you can borrow a Loan in spite of bad credit history:
€ First of all one must survey the market properly by either opting for computer or telephone book and find a non conforming lender. Then after going through their stipulations, rate of interest and tenure you can settle on the Loan that suits you best. You can seek a loan from the bank where you hold an account for a long time. And if you have a good relation with your bank they may sanction a Personal Loan. But if you do not approach them then you will never know whether they will agree to your request or not. One might seem desperate if he or she submits applications for several loans all straight away. And by doing this one may fail to borrow a single loan.
€ Chances of loan approval will get increased if you have collateral in a property below 80%. At the same time one should remember that by taking loan on the basis of collateral can be quite risky. If a person fails to clear the loan timely he may loose the collateral.
€ To get a non conforming loan talk to an expert
There are several Australian non conforming lenders loans available in the market who may actually offer you a personal loan at affordable rate.