What is a bad credit loan?

A bad credit loan is for people who have a bad credit history and typically can’t get a loan from a traditional lender, like a bank.

What is a bad credit history?

A bad credit history occurs when the following items appear on your credit report:

  • An overdue debt that is overdue by 60 days or more, and when the debt is at least $150
  • Poor repayment history
  • Declined credit applications
  • Part 9 Debt Agreement - a legally binding agreement between a debtor and their creditor, where the creditors agree to accept an amount of money that you can afford to pay
  • Bankruptcy

To determine if you have a bad credit history, review your credit report. It is available for free from Equifax.

How much can I borrow?

Fair Go Finance lends between $500 and $5,000 for bad credit loans. Loan length ranges from three to twelve months and interest rates are fixed, however repayment terms depends on each applicant’s financial situation.

Why would I take out a bad credit loan with Fair Go Finance?

There are various reasons why people choose to take out a bad credit loan, from consolidating credit card debts to buying a car to helping with unexpected bills.  

One of our customers, Glenn, found himself homeless, jobless, and with a Part 9 Debt Agreement at the age of 40. He and his wife Michelle moved in with Michelle’s parents to save money, and Glenn got a job on the railways. They paid off the debt agreement and, after careful saving and budgeting, were in a position to buy their first home. They secured a home loan through a specialist lender and things were looking up. It was then Glenn discovered he couldn’t access the first homebuyer’s grant upfront to pay some of the fees as he’d planned. They applied for a personal loan but it was declined due to his lack of a credit history. Settlement was fast approaching and Glenn didn’t know what to do. One day he had some down time at work so he decided to give it one last go and Google his options again. Glenn came across Fair Go Finance and applied for a personal loan using his iPad while sitting on a train engine in the middle of nowhere, and hoping his internet coverage would hold out! Thankfully it did and the $3,500 loan was approved. Glenn and Michelle have since paid off the loan and they’re celebrating one year living in their new home. They’re now in the process of renegotiating their mortgage. Glenn said, “We wouldn’t be here if Fair Go Finance hadn’t given us a chance and approved the loan. They were a breath of fresh air.”

The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.   

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