Can You Get a Personal Loan with Bad Credit in Australia?
If you’ve ever been declined for a loan because of your credit history, you’re not alone. Many Australians find themselves in this position – but the good news is, it doesn’t have to be the end of the road.
It is possible to get a personal loan with bad credit. You just need to know where to look and what lenders are really looking for.
What Is Bad Credit?
Bad credit simply means your credit report shows signs of past financial difficulties. This could include:\n- Missed or late repayments
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Defaults or accounts sent to collections
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A history of multiple credit enquiries
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Bankruptcy or a Part IX Debt Agreement
These events can lower your credit score and make some lenders nervous – but not all lenders assess applications the same way.
Can You Still Get Approved?
Yes – especially with a lender who specialises in bad credit personal loans, like Finance One. Instead of focusing only on your past, we look at your current situation and whether you can afford the repayments now.
You may still be eligible for a loan if you:\n- Have a stable source of income (such as employment or Centrelink)
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Can demonstrate a regular budget and responsible spending
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Are willing to work with us on a repayment plan that suits your situation
What Can You Use a Personal Loan For?
A personal loan can be used for a range of purposes, including:\n- Car repairs or registration
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Medical or dental bills
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Education or training costs
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Consolidating other debts
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Covering unexpected expenses
The key is to borrow only what you need – and to make sure the repayments fit comfortably into your budget.
How to Improve Your Chances of Approval
If you’re applying for a personal loan with bad credit, here are a few tips to help strengthen your application:\n- Check your credit report for errors and get them corrected
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Pay off any outstanding defaults (or enter into a payment arrangement)
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Avoid applying for multiple loans at once
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Have supporting documents ready – such as payslips, bank statements or Centrelink income summaries
You can also take small steps to improve your credit score over time. Learn more in our blog on how long bad credit lasts and how to fix it.
We’re Here to Help
At Finance One, we understand that life doesn’t always go to plan. That’s why we offer flexible personal loan options for Australians who’ve been knocked back elsewhere.
We take the time to get to know you and tailor a solution that suits your needs – not just your credit file.
Final Thoughts
Getting a personal loan with bad credit is possible. With the right support and a lender who understands your story, you can get the funds you need and start rebuilding your financial future.
Ready to take the next step? Explore your options or get in touch with our friendly team today.
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.
