Money When You Can’t Qualify For a Loan

Are you in need of a cash injection and don’t know where to look?

Have you tried applying to different mico-loan lenders to only be knocked back?

Have you even been declined by payday lenders?

If you are dealing with an unexpected financial crisis or have been dealing with financial hardship for some time – finding a lender to provide you cash can be difficult. Those with a low income, debt or a poor credit history will find limited options available.
Adding to the frustration and stress of financial issues are the promises of approval by some lenders, only to be declined at the end of an application process.

 
Why Borrowers Don’t Qualify
Whilst different lenders have different approval processes, they all generally look at the same things. Approval comes down to the risk profile that they are willing to accept. Some companies are very conservative and have a strict approval process, while others are more flexible – but will cost more having higher rates and fees.

Common red flags for lenders may include:

• Income source, most will not accept government benefits as a sole source of income
• Credit history (part IX and bankruptcy will not qualify for most lenders)
• Cash flow or debt-to-income ratio. Essentially most lenders like to see that after all your expenses, you have enough money to services the loan

What to Do When You Don’t Qualify
Depending on your circumstances and need for money, there are a number of options available to you. Below are common borrowing situations and options for assistance.

Cash help – If you are currently on Centrelink you may want to consider an Advance Payment. This allows you to access some of your next benefit payment to help with current financial short falls.

Centrelink Loans – There are different non-profits and speciality lenders who will provide small loans for those on a low income or collecting Centrelink payments. Note that your only source of income can not be purely benefits. Learn more about loans for people on Centrelink.

Help Paying Bills – If you are looking to borrow money in order to pay for utility bills, there are other options. In many instances service providers will work with you and restructure your repayment plan. In addition, there are subsidies available to help you pay your bills.

 
Budgeting Tactic – Have you ever heard of bill smoothing? It’s a tactic originally used by utility providers but can be used across any type of bill. It’s a powerful way to take control of your finances. Learn how this easy to implement budgeting tactic can quickly help you take control of your finances.

Benefits Your Entitled To – Are you currently collecting benefits? Whether you’re on benefits or not, there are subsidies for most living needs. Benefits can help reduce monthly costs providing more cash flow for the budget. Quickly see what entitlements you can qualify for by using a Centrelink benefits calculator. It’s a fast way to see what you may qualify for before applying.

Free Counsellor – If you’re dealing with financial troubles and it’s creating a stressful situation, speaking to an unbiased professional can help. Free financial counsellors are not only trained in helping people resolve financial issues, they also have the resource, tools and networks to make it happen quickly.

Get the Help You Need
The above options are genuine financial assistance sources for those who are in need of many can don’t qualify for a loan. A combination of the above resources can help improve your ongoing financial situation whilst getting the immediate help you need. Take the guess work out of where and how to get help, utilise the above options to take control of your finances.