Your credit history explained
Most people will have a general idea of whether or not they have bad credit. To truly understand your credit position, you must first locate your credit score and review your credit file. Knowing where you sit on the credit scale and identifying what’s working to help keep your credit score stable or is detracting from having a more robust credit score will allow you to improve your credit position.What is a good credit score?
Your credit score (otherwise known as your credit rating) is a number given to you based on your history of lending and repaying money. Your score is provided by one of the major credit reporting agencies in Australia. Depending on the agency, your score will range anywhere from 0 – 1,200 and is calculated based on the information reported on your credit file. The higher the score, the better chance you are of being able to borrow money, as it indicates financial responsibility. Generally speaking, a score of 750 and above is deemed to be a solid credit score. Usually, scores lower than 500 are deemed to be poor credit scores.How can I access my credit report?
In Australia, you have the right to access a copy of your credit report every three months for free! The information on your credit report is what contributes to your overall rating, so it’s essential to look at what’s on your report.Can I get a Personal Loan with bad credit through mainstream lenders?
Despite what’s happened in the past, the present may call for a Personal Loan. Mainstream lenders such as big banks and credit unions tend to shy away from giving out Personal Loans to applicants with a bad credit rating. Understandably, they want confidence, which is based on your past financial history, that the loan can be repaid. If your borrowing history indicates financial problems in the past, big banks and credit unions will err on the side of caution and decline your loan application.Direct lenders for bad credit
Not meeting the lending criteria at the more well-known lending institutions in Australia doesn’t need to prevent you from accessing a personal loan. There are direct lenders who offer personal loans for those with bad credit.Often the eligibility criteria for a bad credit loan are far more flexible and understanding, than the rigid criteria imposed by mainstream lenders.
Frequently asked questions about bad credit lenders
Searching for the best lender and personal loan for you can be time-consuming. We answer some of the most frequently asked questions about bad credit lenders to save you time.Will I pay higher interest rates through bad credit lenders?
The lenders usually determine interest rates and adjust based on the strength of your loan application. A secured Personal Loan usually comes with a more attractive interest rate, as there is collateral that can be accessed in the event that you default and can’t repay the loan. On the other hand, the lack of collateral makes unsecured loans slightly riskier for lenders, which is why they often come with higher interest rates.Did you know
Credit card interest rates are often some of the highest in the credit market. Even if your unsecured Personal Loan has a high interest rate, it can be lower than your credit card and if so, save you money, in the long run, if you perform a debt consolidation of your credit card debt with a Personal Loan.
Apply Online NowCan I get guaranteed approval?
Even the best direct lenders for bad credit can’t offer guaranteed approval for loan borrowers, even secured Personal Loans.What if I’ve only just started a new job?
The benefit of bad credit lenders is that they don’t just help customers with bad credit but also those who may find it different to access personal loans due to a unique financial situation. Getting a new job is an exciting time, but changing jobs frequently can be misinterpreted as having the potential for financial instability.Don't let a new job prevent you from applying!
At Finance One, we accept applications provided you have regular income, such as self-employed income or Centrelink benefits. So, don’t let a new job prevent you from applying for funds for a new car!
Apply Online NowWill I need to supply my bank statements to a bad credit lender?
Each lender will have its own criteria and documentation requirements, however, it’s reasonable to expect that your bad credit lender will want to see:- Statements of any outstanding debts.
- Your bank statements showing the conduct on any bank account that you hold.
- Your payslips, profit-and-loss statement or Centrelink income statement.
Finance One Personal Loans for bad credit
As one of Australia’s trusted bad credit lenders, we want to help meet your borrowing needs.
We give Aussies with bad credit a second chance at accessing the finance they need.
Content prepared by an external writer covering topics that may be of interest to our customers. The content does not necessarily represent the views or opinions of Finance One Commercial.
All loan applications subject to normal lending criteria. Fees and charges payable.
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
