Did you encounter difficulties in doing a balance transfer due to your bad credit? Find out what you can do to enhance your financial situation and apply for a balance transfer credit card.
Balance transfer credit cards are among the most popular choices for debt consolidation. Moving your debt from several credit cards to just one can help you manage your debts easier and in less time. However, in order to have your application approved, your credit report should be steady and positive. We will present to you the main steps you should follow if you find yourself in this situation.
But first, let’s find out how a balance credit card works. Typically, these credit cards are used in order to transfer a debt with high interest to a card with 0 percent or low-interest rate. Additionally, this favourable promotional rate will afterwards turn back to the standard interest or cash advance rate when the offer expires.
As a general rule, before you consider taking a balance transfer credit card, you should assess the amount of money you intend to transfer, your financial capability of making repayments and the way in which you plan on using the card. Bear in mind that balance transfer credit cards aren’t made equal. That’s why it’s crucial to look at various options before choosing the one that delivers the best value for your needs.
The Link between Balance Transfer Credit and Bad Credit
It goes without saying that most Aussies that wish to move their debts to these cards choose to do so to reduce the amount paid on interest. Nevertheless, credit card providers typically don’t approve applications coming from people whose credit files are tainted. Even so, you shouldn’t lose your hope.
Having a bad credit score means you will qualify for a short range of cards. When you do your research, try to look for the ones that require no credit check.
Typically, you must have an average credit score if you want to be approved for a balance transfer credit card. If you have bad credit, many lenders will recommend you to improve your credit score with a secured credit card and postpone your initial application.
- Know where you stand
Believe it or not, there are plenty of people who do not really know how much they owe or to whom. To understand why you encountered difficulties while doing a balance transfer, you need to know more about your financial situation. To do so, try to write down, calculate or collect all your bills to see where your money is going and which debts are ruining your credit score.
If you conclude that you are overwhelmed and cannot manage them anymore, reach out for help. Debt consolidation or refinancing might be a solution.
- Compare various bad credit loans and debt consolidation loans
If you are incapable of applying for balance transfers, looking for bad credit loans or debt consolidation loans could be your best option. A debt consolidation loan could be a decent choice since it puts your finances in order. Distinct from a credit card, it also minimises the temptation to spend more than you can afford.
Furthermore, bad credit loans are targeted specifically for people whose finances aren’t in their best shape. badcreditloanss.net.au is a reliable provider of bad credit loans that delivers direct access to loan solutions.
- Choose a credit repair service
Although there is no certainty that a credit repair service could make all your troubles go away, it could still improve the overall status of your credit file. Also, it might save you from applying for bad credit loans.
However, do not fall into the trap of scam services that promise to make your credit score as good as new by erasing your entire credit history. Such a thing is not possible, nor legal.
- Get a payday loan
A payday loan is another excellent alternative that can be part of the category of bad credit loans. The requirements for receiving approval are less strict than with credit cards, which maximises your chances.
People choose this kind of loan because it is fixed and lasts for a short period. Also, it’s quite easy to obtain in the case of any emergency. Nonetheless, before sending your application, don’t overlook the fees and the timeframe you are expected to make the repayments.
To conclude, we recommend that you take good care of your credit score since it affects more aspects of your life than people think. If your bad credit prevents you from completing your financial goals, you could always choose to repair your credit or select one of the many loan solutions known as bad credit loans. Do some research and try to choose the best solution for your financial situation. It is never too late to fix your credit score.