Personal loans for bad credit may be easier to apply for than you think. You may have heard that you can’t get bad credit personal loans in Australia, but there are several options available that may be suitable for your circumstances.
Even with a poor credit history, you may be eligible to apply for a personal loan to suit your needs — provided you can meet the eligibility requirements, such as having a steady income stream and providing documents proving your identity.
What is bad credit?
Your credit score is generally your history of paying bills and repaying credit accounts — things like loans, credit cards, phone bills and other utilities accounts. If you have had trouble keeping up with your financial commitments, this can result in a bad credit history. Ending up in this position can happen all too easily — even to those with the best intentions. Mistakes like outstanding bills that were sent to the wrong address (without your knowledge) can take a good credit score and send it on a slippery downward slope.
How long does bad credit last?
Finance One Personal Loans
You may seek to apply for a bad credit personal loan. A personal loan for bad credit is designed specifically for people with a problematic credit history.
Apply for a Personal Loan Online- Accessing a copy of your credit report: There’s no point in taking a stab in the dark when it comes to fixing bad credit scores. Understand what’s led to your low credit score by accessing a copy of your credit report from one of the credit reporting agencies in Australia. Sometimes, misinformation, such as incorrect personal details, can push your score lower than it needs to! Reach out to the credit reporting agency if any of your details are incorrect or if you have incorrectly listed accounts on your credit file.
- Paying your bills on time: One of the first steps to helping fix your credit score is to assess all your bills and make sure they are paid on or before their due dates every month. Missed payments can negatively impact your credit score.
- Minimising credit checks: Loan applications or other credit applications (such as credit cards or payday loans — even increasing your credit card limit) require a credit check. Frequent applications to borrow money can appear to future lenders that you are irresponsible with your money and are living above your means.
Top Tip
Setting a budget that includes regular savings (even a small amount per week or pay period) can help build a nest egg for financial emergencies such as car repairs or medical expenses. This will help reduce the need to borrow more money when things go awry. It will also help demonstrate to loan specialists that you are financially disciplined.
- Keep your bank account in the green: Australia has a comprehensive credit reporting system — Australian banks will now register when your account gets overdrawn! No matter what loan option you choose, the chances of your credit provider looking through your bank statements as part of the application process are high.
What if I need more time to repair my bad credit score?
If you need a cash boost sooner rather than later, you may seek to apply for a bad credit personal loan. A personal loan for bad credit is designed specifically for people with a problematic credit history.
Bad credit personal loans
Flexibility with your bad credit loan option:
Did you know:
Other lenders often penalise loan holders for making extra repayments, but at Finance One, we encourage you to pay down your personal loan a little extra where you can!
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Why you should avoid major banks when applying for bad credit finance
Major banks and other financiers typically can’t provide the flexibility that specialist lenders can. Often, if applicants don’t meet the basic criteria, traditional lenders decline the application and look no further. Finance One specialises in providing people with bad credit, those on Centrelink benefits, or self-employed people a chance at accessing the finance they need.
Our local team is based in Australia and will work closely with you from your first enquiry to your last repayment to ensure you can access the loan you need while rebuilding the credit score you deserve. Contact our friendly support team to find out how we can help you access a bad credit personal loan.
Apply for a Personal Loan OnlineNormal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
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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. Please note that approvals for loan applications are subject to satisfactory documentation being received to properly assess the application. Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
