Ume Loans Blog

Celebrating 15 Years of Giving Financial Second Chances - Ume Loans is marking a significant milestone this year as it celebrates 15 years of providing financial second chances to Australians with less-than-perfect credit histories. Since its inception in 2009, Ume Loans has grown to become a trusted name in the alternative lending market, offering finance to many who were left behind by traditional banks and finance companies. {{embed_youtube_vid_here}}   The Origins of Ume Loans Ume Loans was founded in the wake of the Global Financial Crisis (GFC), a time when many financial institutions tightened their lending criteria, leaving many good borrowers without access to the loans they wanted and needed. Recognising this gap, Ume Loans stepped in to provide thousands of financial second chance loans to good people who deserved another chance but were unable to secure loans from conventional lenders​. Every day is a second chance A Commitment to Fairness and Inclusivity At the core of Ume Loans' philosophy is the belief that everyone deserves a second chance. This principle has driven the company's operations and has been the foundation of its success. Ume Loans specialises in bad credit loans, offering products such as car loans, boat loans, motorcycle loans, and caravan loans to both consumers and businesses.…

7 Essential Things to Know Before Applying for a Bad Credit Car Loan - Are you considering a car loan but are worried about your credit history? Securing bad credit car loans in Australia may seem like a tricky and complex process; however, arming yourself with the right knowledge beforehand can simplify your experience. At Ume Loans, we specialise in bad credit car loans and are dedicated to guiding you through the complexities of securing car finance with a less-than-perfect credit history. Our experienced team of second-chance lending specialists understand the challenges you may face and provide personalised support to help you successfully navigate the intricacies of bad credit car loans. Here are seven essential tips to help you understand no credit check car finance and bad credit car loans, ensuring you're well-prepared before you apply. 1. Understanding What 'Bad Credit' Means Bad credit refers to a lower credit score, which can result from various financial mishaps like late payments, defaults, or bankruptcies. Before applying for bad credit car loans, check your credit report to understand your financial standing. Knowing your credit score helps you gauge the likelihood of approval and what terms you might face. At Ume Loans, we start by understanding your credit history and any recent financial challenges. You'll need to…

How Does Linking My Bank Account Details Work? - These days, lenders will request to access to your online bank accounts as part of the loan assessment. With new technology, being able to access these details, it helps us as the lender to make better lending decisions for the customer based on real time banking data. This data listed on your bank statements allows us to look at things like, income deposits, withdrawals, payments of loans, cash flow for a business and other general transactions.   But Just How Safe Is This Permissioning? Online bank account permissioning is usually done through the online application process, or on request by the lender. Here you will be asked to enter your username and password (your Credentials) in the same way that you would access your online bank accounts. This might seem uncomfortable, but the back-end processes are robust, and security measures are as strong as any Australian banking institution. In fact, the security measures that are taken to protect your information throughout the process is the same technology used by the big banks right here in Australia. This secure online process has passed the scrutiny of regulatory authorities and has been widely accepted across the finance industry as being best practice…

Understanding Interest Rates for Bad Credit Car Loans - When applying for a bad credit car loan, you may be faced with higher interest rates. Lenders see lending to people with bad credit as a risk and to make sure that the risk is worth it, they often charge higher interest. Lenders look at risk when they loan money and the way that they make their money is from interest. If there is a higher risk that they won’t get their money back, then they raise the interest rates to compensate. Likewise, a lower risk usually has a lower interest rate. When understanding interest rates for bad credit car loans, anything that adds risk to the lender will usually add to the interest rate. Luckily, the opposite is also true. Anything that lowers the risk will allow the loan to go through with lower interest rates. What are interest rates? Interest rates are usually a percentage of the initial amount loaned, called the principal. As the start of your loan, you’ll notice an increase of 10% normally every month, meaning your payments don’t bring down the total quite as much as expected. As you make more payments, the amount added onto your total will get smaller. If lenders didn’t…

The Benefits of a Second Chance Loan: What’s in Your Best Interest? - In the world of finance, a second chance is not just an opportunity to fund the purchase of something that you want or need. To receive funding from a second-chance lender such as Ume Loans grants people the opportunity to get their credit history on the right path. Traditional lending often places significant emphasis on credit scores, making it challenging for individuals with less-than-perfect credit histories to secure loans. However, the emergence of second chance loans that don't check credit scores upon initial inquiry is changing the game. In this blog, we will explore the benefits of securing a loan with average credit history,  and how these loans can serve as a lifeline for those seeking a fresh start. Understanding Second Chance Loans Second chance loans are a category of financial products that are designed to provide those with less-than-perfect credit history to access finance. These loans are primarily used to purchase vehicles to help commuters get to and from work, to safely transport their families, and to consolidate debt that may be difficult to manage otherwise. By taking a holistic approach in the assessment of each applicant, Ume Loans provides a service that allows for no credit checks upon…

Questions to ask yourself before getting a bad credit loan - Getting a bad credit loan can help to give you a second chance on your finances but if you’ve never taken out a loan before, it might be hard to know what questions you should ask. Making sure that you have all the available information is crucial to ensuring that you are in the best position to manage your debt. Questions to ask yourself Before reaching out to a bad credit lender in Australia, it’s important to ask yourself some questions first. That way you can do your best to make sure that you don’t put yourself at risk. Do I need a bad credit loan? The most important question you can ask yourself is whether you actually need this loan. There are a lot of reasons that you could need to open a line of credit, but some may be unnecessary. If it helps, try to write down why you want a loan. Sometimes, you may be able to come up with another solution – like just waiting a few months or finding a less expensive option. Knowing why you need money can help you work out if the loan is for something you need or just something you…

Understanding Responsible Borrowing with Bad Credit Loans: A Guide for Australians - In the finance world, managing personal funds can sometimes prove challenging, especially for those dealing with an average to low credit score. Obtaining a finance pre-approval under these circumstances might seem like a tough task. However, bad credit personal loans and bad credit car loans can be a helpful facility if they are managed carefully to avoid worsening financial situations and impacting your credit score. We explore some fundamental tips for responsible borrowing when considering bad credit loans in the Australia. Understanding your financial situation and credit score Before applying for a loan, it's important to thoroughly assess your financial situation and credit score. Things to consider are: Your income Your expenses Your current debts What may be shown on your credit file This self-assessment will help prepare the Lending Specialists at Ume Loans to deem how much money you will be eligible to borrow and responsibly pay back. Utilising helpful tools such as loan calculators and informative pages on finance in general can help prepare you to understand your financial situation before embarking on your loan journey.   Set clear borrowing goals Confirming the purpose behind applying for a bad credit loan is important. Some may want to borrow…

Top tips to come back from a bad credit history - Getting a loan with a bad credit history can be tricky. Many banks and other traditional lenders have strict lending criteria that excludes those with bad credit scores, making it seem near-impossible for them to obtain financial assistance when they need it. Luckily, there are lending companies like Ume Loans who specifically service customers who don’t meet traditional financial criteria or have a less than perfect credit history. With the help of a loan from these companies, borrowers with bad credit are empowered to obtain finance and make timely repayments, which can help establish a positive credit history and improve their credit score over time. With some planning and persistence, coming back from bad credit is totally possible. For our top tips on how to improve your credit score, read on. Understanding your credit report and score A credit report is a summary of your credit history, meaning it details your spending and payment history across all credit accounts you have or have had in the past. A credit score is a numerical representation of your credit report. This score is what is used by lenders and banks when assessing you as a potential borrower, and is calculated using a…

How is my credit score calculated? - What’s your credit score? It’s a question that every adult should be able to answer. Those digits will determine how easy it is to acquire a personal loan, mortgage, and credit card, as well as what kind of rates you’re offered. If you’re not sure, don’t worry, as you’re not alone. In the following guide, we’ll take a closer look at credit scores in Australia, showing you how they work and answering questions such as: What determines your credit score? Your credit score is a number between 0 and 1,000 (1,200 for Equifax). It is calculated automatically and updated when new information is received. The higher your score is, the easier it will be for you to acquire credit. All the following factors contribute to your credit score: How is my credit score calculated? How can I check my credit score? How do score ranges differ across credit reporting organisations? How can I improve my score? What does it mean to have bad credit?   Payment history Your payment history is the most important part of your score. It covers all your previous repayments, missed payments, and defaults. It tells lenders how responsible you are and how likely you are…

How much can I borrow with bad credit? - Sadly, having bad credit can impact your borrowing ability. Many mainstream or traditional lenders, like banks, will outright reject any loan application with bad credit which can be stressful. Luckily, there is a whole industry of lenders who specialise in bad credit loans. But the question remains. How much can you borrow with bad credit? The simple answer is that you are often capped within a certain bracket compared to a traditional loan. As always, though, things are a little more complicated than that. Regardless of whether you are going through a traditional lender or a bad credit lender, it’s important to do your research and make sure you know what you’re getting into. What is credit history? Your credit history is a record of your ability to manage debt, and facility enquiries that you have made. It considers information like your history of repaying liabilities on time, the number of credit applications you’ve made, your habits with debt and more. Often, your credit history is calculated and turned into a number between 0 (poor) and 1200 (excellent). This is your credit score. Lenders use your credit score to determine the risk they take in lending money. Someone with a…

Are bad credit loans right for me? - Looking for a second chance to get your finances sorted but are struggling to find a lender? It might be time to look at getting a bad credit loan so that you can get yourself back on track. Bad credit loans can be great for getting a car financed, consolidating other sources of debt or paying for any surprise expenses. But you might be wondering if a bad credit loan is right for your needs. As always, it's best to do your research. Make sure that you chose the best loan for you and that you have a plan to pay it off. How do you get a loan with bad credit? If traditional lenders like banks are refusing your applications, a bad credit loan might be right for you. Luckily, there are a lot of different lenders out there who can give you a second chance at your finances. As the name suggests, bad credit lenders specialise in lending to people with bad credit scores. They often pay less attention to your credit score and focus more on understanding your current situation. Do you really need a bad credit loan? Applying for a loan should always be considered carefully.…

How did I get a bad credit score? - If you’ve recently had a loan application or a credit card application rejected, it might be because you have a bad credit score. There are a lot of ways that you can find yourself with a bad credit score but it’s important to remember that you can always work to improve it. What is a bad credit score? Credit scores in Australia are calculated based on information in your credit file and they consider anything that can indicate how you manage debt. They’re generally a number between 0 and 1000. Lenders use them as a risk guide when lending money. The closer your score is to 1000, the better. Anything under 500 is below average and lower than 400 can make it much harder to get a loan. Credit scores are usually made up of any information about your ability to manage debt and pay it back. While they take a lot of different information to calculate, some areas are a little easier for you to track. It can be frustrating to find out that your credit score is low, particularly if you don’t know why. If you’re wondering why you have a bad credit score, it might be one…

Everything you need to know about Jobkeeper - The Australian Government has finally released the much anticipated Legislative Instrument and accompanying Explanatory Statement for the JobKeeper Payment. The ATO have also released further information on their website. This is the "nitty-gritty" detail we have been waiting for. Employers can now commence the process of implementing the JobKeeper payment as follows: STEP 1: ASSESS ELIGIBILITY OF THE EMPLOYER To be eligible to receive JobKeeper an employer must meet the following tests: a) On 1 March 2020, you carried on a business in Australia ;. b) You employed at least one eligible employee on this date; c) Your eligible employees are currently employed by your business for the fortnights you claim for; d) Your business has faced a 30% fall in turnover Business owners actively engaged in the operation of their business are also eligible to claim the JobKeeper payment (i.e. an individual shareholder, director, adult beneficiary or partner). Criteria (b) above does not apply in this instance. 30% DECLINE IN TURNOVER TEST This test works by comparing the projected (i.e. estimated) GST turnover of the employer for a month or quarter (the test period) with the actual GST turnover of the comparable month/quarter of 2019 (the comparison period). To…

Improve your chances of getting your loan approved - How to get your next loan approved   If you are having difficulty obtaining a loan then follow our 5-step process which might help you to improve your borrowing capabilities so the next time you apply, your loan is APPROVED! Step 1 Find out why you were declined? Not all finance companies will tell you why you were declined, in fact many will simply say "you didn't meet our criteria". Here at Ume Loans we will always be honest and transparent with you and explain to you why we were unable to approve you. If you know why you were declined in the past you can repair your financial situation so you can be APPROVED in the future. Step 2 Bank Statement Conduct Lenders have a legal obligation to lend money responsibly. This means that if it looks like you can't afford another loan then they can't legally lend it to you. Lenders want to understand that you can manage your money effectively. One of the ways a lender will assess your financial circumstances is to review the way you manage your bank account. Usually, a lender will review the last 3 months of your bank statements. Some things that…