Bad credit finance

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Bad credit personal loans

Get a loan for renovations, holidays, or to consolidate debt

Bad credit home loans

Get a mortgage to buy a home or investment property

Bad-credit credit cards

Get more financial flexibility or transfer your existing credit card balance

Car loans

Secured and unsecured car loans for bad credit borrowers

Short term loans

Small loans, payday loans and other options for financial emergencies

Financial help

Learn how credit scores affect your finances

Get the Bad Credit Guide

Get RateCity's guide to help you understand what you can do if you have bad credit.Download the guide to get all the information.

A complete guide to credit scores

Your credit score tells potential lenders whether you have a good or bad financial track record when it comes to borrowing money. Whether you’re looking for a home loan, a car loan, a personal loan or a credit card, lenders may be less inclined to deal with you if your bad credit score makes you look like a risky borrower.

To learn more about credit scores, including how to check your score, what it means for your finances, and what you can do about bad credit, download our guide:

Getting a loan with bad credit

 

  • It’s not impossible to borrow money if you have bad credit. Some lenders specialise in bad credit borrowing, offering financial options to struggling Australians.
  • Some loans are available with no credit checks, though most lenders will want to perform a comprehensive financial assessment before approving your loan.
  • Most bad credit loans come with higher interest rates and fees. Make sure you can afford the repayments.
  • Making timely repayments on a bad credit loan may help repair your bad credit score, which may help you borrow in the future.

Bad credit home loans

Many specialist lenders offer home loans for ‘non-conforming’ borrowers who have difficulty securing a more traditional home loan due to:

  • paid or unpaid defaults
  • tax debt
  • repossessions
  • too many loan enquiries
  • discharged bankruptcies (when you have been released from bankruptcy status)
  • being discharged after a Part 9 Debt Agreement (when your creditors agree to accept an amount of money that you can afford to pay to settle your debts)

Be aware:

 

  • Bad credit home loans come with higher interest rates and fees, as the lender is seen to be taking on more risk. Once your negative listings expire from your credit report (and provided you meet your repayments), you could refinance to a home loan with a lower interest rate.
  • Avoid trying your luck by applying for multiple different home loans, as this will further damage your credit score. An alternative is to see a broker or financial consultant who deals specifically with borrowers who have an impaired credit history.
  • Most lenders assess borrowers with bad credit on a case-by-case basis. They will most likely want to meet with you, hear about your circumstances and examine your finances to see if you’ll be able to service a loan. Have your tax returns and pay slips ready to show you earn sufficient income.

Bad credit personal loans

bad credit personal loan is designed for borrowers with an impaired credit history. In some instances, they can help those with bad credit to consolidate their debts so it’s easier to pay them off. For example, a borrower might be able to consolidate several debts with higher interest rates (such as credit card loans) into one single debt with a lower interest rate.

Personal loans come ‘secured’ and ‘unsecured’. A bad credit personal loan is ‘secured’ when the borrower offers up an asset, such as a car, as collateral. The lender can then seize the asset if the borrower fails to repay the loan. An ‘unsecured’ bad credit personal loan doesn’t have an asset as security, and so comes with a higher interest rate than a secured loan.

Be aware:

  • Bad credit personal loans come with higher interest rates than regular personal loans, so make sure you do your research to find some of the most competitive rates on the market.
  • Each lender has its own policy, but generally you’ll find it hard to be approved for a bad credit personal loan above $50,000.
  • While bad credit lenders may be sympathetic to your circumstances, they usually have stringent application processes to ensure you can handle your repayments.

Our lenders for bad credit

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