Can I get a loan with bad credit?
Often, yes. Bad credit loans come from lenders willing to look past a low score or an old default, as long as your situation today shows you can manage the repayments. Specialist and non-bank lenders do this every day.
Go in with realistic expectations: bad credit personal loans may cost more, the amount may be smaller, and the lender will look closely at your income and spending.
What counts as bad credit in Australia?
There’s no single cut-off. Lenders read your whole credit report, not just the score, and each one weighs things differently.
| On your report | What it means | How lenders tend to see it |
|---|---|---|
| Repayment history | Your record of paying loans and cards on time each month (comprehensive credit reporting) | Recent on-time months count in your favour, even after past slips |
| Credit enquiries | A record each time you formally apply for credit | Lots in a short time can look like financial stress |
| Defaults | An overdue debt the creditor has formally reported | Paid, older defaults are viewed more kindly than recent unpaid ones |
| Court judgements | A court order to pay a debt | A serious flag, though specialist lenders may still listen |
| Bankruptcy or debt agreement | A formal insolvency arrangement | Usually needs to be finished or discharged first |
You can get your credit report free from the credit reporting bodies, and checking it yourself doesn’t affect your score. It’s the best place to start — and a chance to spot errors.
Why do multiple applications hurt my credit?
Every formal credit application shows up as an enquiry on your credit report. Several in a short space can suggest you’re being knocked back or under pressure, which makes the next lender more cautious.
It’s a frustrating loop: a decline prompts another application, which makes the next decline more likely. A broker breaks it by doing the matching first.
- 1
Enquire without a mark
Our 2-minute enquiry doesn’t affect your credit score.
- 2
Tell us the whole story
What happened, what’s changed and what you need.
- 3
We target one lender
From 60+ lenders, we pick one whose criteria genuinely suit your file.
- 4
Apply once, with notice
We tell you before any credit check, then guide you through to settlement.
Who offers bad credit loans? Specialist and non-bank lenders explained
A specialist or non-bank lender is a licensed lender that isn’t a bank, and many focus on people the big banks turn away. They tend to assess each person individually rather than by a strict scorecard.
- Your current income and how stable it’s been lately
- How long ago the trouble happened, and whether defaults are paid
- What caused it — a one-off event reads differently from a pattern
- Your current spending and existing commitments
Bad credit car loans are often secured against the vehicle, which can help, and rolling several debts into one with debt consolidation can be a positive step.
How can I improve my credit score quickly?
There’s no overnight fix, but small, steady moves genuinely help. The biggest one is simple: pay everything on time, every time, starting today.
- Get your free credit report and check every entry — you can ask for mistakes to be corrected.
- Automate repayments with direct debits timed for when you’re paid.
- Trim your credit limits. Unused cards still count when lenders work out what you can afford.
- Treat buy now pay later as credit — since 10 June 2025, it legally is.
- Pause new applications so fresh enquiries don’t pile up.
Our guide to credit scores and loan applications walks through it step by step. If debts feel too big to handle, the free, confidential National Debt Helpline (1800 007 007) can help you work out a plan.
What you’ll need
- Photo ID
- Recent payslips or proof of income
- Recent bank statements
- Details of any defaults and whether they’re paid
- A short explanation of what happened and what’s changed
- A list of current debts and limits
Who it usually suits
- Aged 18+, living in Australia as a citizen or permanent resident
- Regular income you can show, including casual or self-employed income
- A loan amount that fits comfortably within your budget
- Any bankruptcy or debt agreement typically finished or discharged
- Recent bills and repayments mostly paid on time
