Your credit isn’t looking so pretty? Getting a loan isn’t entirely out of the question! A bad credit loan might be just what you need. Maybe you got the wind knocked out of you, or perhaps you’re struggling to build credit for the first time. Either way, it can be difficult to get a loan if your score isn’t good. Poor credit constitutes a major obstacle, not an unmovable wall. Lenders will view you as a high-risk customer who is more likely to default. Getting a bad credit loan is often better than seeking a payday loan with the promises of no credit checks.


How to Get Approved

It may prove difficult to get approved for a bad credit loan. Most conventional banks won’t trust you, and some private lenders might charge exorbitant rates to offset the risks. Don’t fall in the game of applying to various lenders in a short time frame. It will ruin your credit even further. Avoiding commercial banks altogether will save you that headache. We personally recommend you limit your choices to specialised money lenders. This way, your bad credit loan won’t take so long. A good example of this is credit unions. Whereas banks will refuse you for being a ‘potential risk’, a credit union may be inclined to give you a shot. Ideally, you want to get judged by your character than your rating.While the requirements might vary slightly from lender to lender, the base criteria are the same for all, from banks to private lenders. As always, the more documentation you bring, the better the odds.


  • Identification

Having your personal documents in order will help you apply for a loan. Regardless of the loan you’re looking for, you’re going to need: your passport, Australian driver’s licence, proof of age card, citizenship and birth certificates and health care card (and/or pension card). Keep these handy during your application!


  • Income Evidence

It should go without saying but, if you intend to get a bad credit loan, you should be employed or otherwise receiving a steady stream of income. Being through a bankruptcy almost nullifies your chances of getting a loan at all. Bear that in mind. You will have to provide income evidence such as payslips if you’re employed, or Tax Notice Assessment from the ATO if you’re self-employed. A rental history might be requested as well. Finally, your lender will likely check your financial statuses such as your employment history and the length of your current employment, as well as your annual salary. Bring as much evidence of your income as you can!


  • Credit Report

I know it’s called bad credit loan, but they still have to check it! You’re bracketed on a five-point scale according to your credit score. It goes from ‘excellent’ to ‘below average’, passing through ‘very good’, ‘good’, and ‘average’. Regardless of these positions, what determines if you get the loan or not is the criteria of your loaner. For some, ‘average’ might be good. Don’t be afraid of asking your money lender about it! Typically, lenders have a cap or a starting point. Some exclusively consider applicants with at least 600 points. If you apply to such a lender with a score lower than that, expect to be rejected immediately. Don’t take it personally! The truth is that they have a business and they must keep it going. Someone with bad credit score is a proven a risk. You can always try convincing, but if that doesn’t work, just seek another lender!


  • Credit History

This part is perhaps more important than the rating. Unfortunately, this part might be uglier than our score. This part of your report tells lenders about your patterns. If you have displayed a habit of defaulting or paying late, you won’t look very trustworthy, will you? Despite this, your recent behaviour (about 6 to 12 months, depending on the money lender) is of importance as well. If you’ve been honestly trying to improve your credit score and you can prove it, lenders will be more inclined to give you the bad credit loan. Don’t forget that each lender is different. How they regard each factor is completely up to their discretion.


  • Loan Amount

This bit is important. Don’t go overboard with your application! If you only need $800, don’t ask for $1000! Given your delicate financial situation, money lenders will be cautious. Don’t dismiss their minimum limits either way. Some lenders won’t grant loans below a certain amount. As always, flesh these details when talking with your lender. The trick relies on asking the correct amount. Not too much, not too little.



There’s still hope! The market has enough offers for those who need bad credit loans. You just have to get in touch with the right people, that seriously want to help you and are not after a pay check. Bad Credit Loans specialise in these services, get in touch with our friendly team today.

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