FAQs

Poor credit loans are available through specialist lenders but all applications are considered on an individual basis.

Comprehensive Credit Reporting is the system used by reporting agencies and it includes both the negative and positive elements of an individual’s credit history.

Individuals can obtain a copy of the Credit Report through a range of agencies. The Government website Moneysmart is a useful resource for steps to take to receive free copies and ways to improve credit ratings.

Low score credit may be used for a range of purposes including purchasing vehicles and other goods as well as covering expenses such as medical and educational, holidays, weddings and repairs.

The interest rate on poor credit lending is typically higher than the best rates which will be advertised by lenders. Each application is assessed by bad credit lenders when establishing the interest rate they will offer.

Loans for individuals with poor credit may be secured or unsecured.

Both income and expenditure and financial position form part of the lender assessment of credit applications. A higher income may be considered in a positive light depending on the regular recurring expenses, assets and other aspects of the application.

The limit for loans to individuals is borrowing capacity. This is assessed by lenders on an individual basis. Applicants with credit issues may be offered a lower limit compared with applicants with a good credit history.

Individuals with existing poor credit arrangements may consider refinancing part-way through the loan term if their score has improved. The costs of refinancing should be considered in conjunction with any benefits received from achieving a lower interest rate.

Bad credit lenders are typically non-bank lenders. Many may only be accessible through brokers.