Personal Loans with Bad Credit in Australia

Being self-employed can mean that you don’t fit the “right” profile for borrowing from some of the major banks or lenders, even if you’re very successful in your role. Unfortunately, the same also tends to apply to people who are retired or have seasonal sources of income. However, at Finance One, we understand that not fitting the mould doesn’t mean that you’re not a reliable borrower. That’s why we offer personal loans for bad credit as a means of helping people apply for the finance they want.

Before you decide on a loan provider, it’s a good thing to do your due diligence and look at several different providers. But one of the most common mistakes people make is putting in multiple applications for loans while only accepting the one that they actually want after approval. But this can have negative repercussions for your credit score, as multiple lenders will likely be investigating your credit score. It’s critical to discuss the terms of a loan directly with a provider prior to making a final decision.

Before you make a decision on your loan provider and lodge an application, make sure that you can demonstrate a consistent pattern of saving. At Finance One, we understand that credit scores aren’t necessarily indicative of financial habits — but having evidence of it in the form of bank statements and receipts can be a great way to prove that.

Many people aren’t aware that debt isn’t automatically cleared off your credit report when you’ve finished repaying it. So before you apply for a personal loan with bad credit, make sure you still check your credit report — this can sometimes help ensure that you don’t have any past debt limiting how much you can borrow.

This might sound obvious, but once you’ve got a loan, it’s critical to make repayments to the lender in a timely fashion and in accordance with the terms and conditions of the loan contract. It helps demonstrate your reliability as a borrower to future lenders while also ensuring that the loan is repaid in a timely fashion and pursuant to the terms of the loan agreement.

Yes! Finance One can consider applicants whose credit history includes defaults, previous bankruptcies or Part IX Debt Agreements. We specialise in personal loans for bad credit, so even if the banks have said no, we may still be able to help. Our focus is on your current situation and ability to repay, not just your past.

Our interest rates can vary depending on your overall profile including, but not limited to, your stability in employment and residency, credit history, affordability and banking conduct. We assess every application for bad credit personal loans individually, which means your rate is tailored to your circumstances rather than set at a flat figure.

Yes, you can make extra repayments or increase your repayments. For consumer bad credit personal loans, you can pay your loan early as we have no early pay out fees. This flexibility means you can reduce interest and pay off your loan sooner if your financial situation improves.

The minimum documents we require for an application include: 

• three months of bank statements (we will provide you with our secure link to bankstatements.com.au to provide your bank statements); 
• proof of your income; and 
• completed application form and privacy statement. 

In some cases, we may also request additional documents such as ID (driver’s licence), business details (for self-employed applicants) or information about existing debts to help us get a full picture of your financial situation.

Not if you manage it responsibly. In fact, a bad credit personal loan could help improve your credit standing over time. By making repayments on time and in full, you demonstrate good financial behaviour that is reported back to credit agencies. This may gradually strengthen your credit profile and improve your chances of accessing finance in the future.

Yes. In addition to bad credit personal loans, Finance One also provides finance options for specific needs such as home renovations, travel, weddings, veterinary and medical bills and car purchases. These loans are available to give Australians more flexibility in managing life’s big and unexpected expenses.