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More Information About Bad Credit

Bad Credit

Can I get a loan with bad credit?

Yes, you may be able to access a bad credit loan with us. You’ll need to demonstrate your willingness to improve your credit history, so your bank statements will be very important in your application to prove that you have started to get back on track financially.

Our loan eligibility criteria outlines what we require from you to be eligible for a loan, and we’ve designed it so we can cater to those with a credit score that’s blocked out by traditional lenders. In saying that, we do have to abide by responsible lending rules, we must ensure our loans aren’t going to put our customers at risk of financial hardship.

Basic loan eligibility criteria

Before you apply for a loan with us, we understand you’d like to know if you’re eligible.

Check out our handy checklist that explains our basic criteria:

  • You are 18 years of age or over

  • Living in Australia (citizen, permanent resident, on a working visa or sponsorship visa)

  • Have not declared bankruptcy in the last 12 months

  • At least 50% of your income is from being employed on a casual, part-time or full-time basis

When we assess your application, we look at both your bank statements and your credit history.

If your credit score is:

Over 650Then it is likely you will be eligible for a low-rate personal loan and we should have a number of options for you.
Between 450 and 650You may have a couple of loan options depending on your current financial circumstances.
Less than 450You may be able to access to a loan with us to demonstrate your willingness to improve your credit history. Your bank statements will be important for your assessment.

Although we can’t help every situation, our range of personal loans are available for people with good credit and certain levels of bad credit too.

Fair Go Finance can still help you if you have bad credit. Find out more about our bad credit loans.

Can you say if I will get approved before I apply?

It’s tough. We list our eligibility criteria to give you a quick way to see if applying is worth your time, but we can’t guarantee approval before you apply.

During the application, we look at both your credit report and your bank statements. Whilst it is possible to look at your credit report before you apply, we don’t look at your bank statements until you submit them during the application (as this is the most secure method).

Both are equally important, as they paint a picture of your shorter and longer-term financial history. So, we can’t give you an absolute guarantee until you apply, but we can estimate the likelihood based on your credit score.

What are bad credit loans?

‘Bad credit loans’ may sound like bad things, but they’re simply cash loans for people who have bad credit. And because we only lend responsibly, our bad credit loans are one of the best ways to get the quick cash loan you need, as well as your credit rating back on track.

There are all sorts of reasons why you might have a bad credit score and be looking for loans for bad credit, but we’re not here to judge. Our responsible cash loans are designed to minimise your borrowing costs and help you build your credit score.

You might get offered a smaller loan than anticipated (but that’s OK)

When we look over your application, we are trying to see if you can afford the repayments for this new loan and your current expenses. Part of being a responsible lender is ensuring the repayments comfortably fit into your current budget.

If we think the repayments on the loan amount you applied for might not fit your budget, we can look at offering something smaller if it still meets your loan purpose. This way, you can get some funds and the repayments can comfortably fit amongst your current spending without putting you at risk for financial hardship.

This smaller loan gives you the opportunity to build up some positive payment conduct on your bank statements and in your credit report, so the next time you go to apply for a loan, you can be in a better position to receive a larger loan amount if that’s what you need.

What do you look at when you read my credit report?

A look into your credit report will reveal a number of things about your ability to repay a loan. Ultimately, we want to make sure the loan you’re applying for fits within your budget and the payments will be manageable.

Things lenders look at include:

  • Payment history – late payments, missed payments, mortgage default and bankruptcy are all red flags to lenders.

  • Outstanding debt – do you have a lot of debt? Put simply, the less debt you have the greater your chances of getting a loan approved.

  • Credit history – if you have a good track record of responsible credit use then this boosts your credit rating and lenders love a high credit score! On the other hand, if you suddenly open up multiple credit card accounts in a short time then lenders will question why you need so much credit and it could hurt your credit score.

  • Credit enquires – for every application you submit – be it a personal loan, credit card, car loan or phone contract for example, the lender will run a credit report. While it’s good to compare lenders, you should only submit a loan application with the lender you want to go with. Shopping around for credit by submitting multiple applications can have a negative impact on your credit score.

  • Credit score – we mentioned lenders like a high credit score, and while it’s not the deciding factor for approving a personal loan, having a healthy credit score does look more favourably on you.

  • Personal information – details such as your name, address and date of birth. Why do we look at this? To ensure the information you provided matches what’s in your credit report and to verify it is definitely you who is applying for the loan.

What do you look at when you read my bank statements?

We look through 90 days of banking activity to see what your spending patterns are like and whether you’re capable of meeting your loan repayments based on your current lifestyle. We also use your bank statements to verify your identity and income.

Things we consider red flags include:

  • Withdrawing large amounts of cash from your account

  • Accumulating lots of buy now pay later debt and missing repayments

  • Any late charges on your credit card repayments or utility bills

  • Withdrawing more money (overdrawing) than the balance available in your account

  • Unusually large fluctuations in the balance of your account

  • Regular direct debits that haven’t been declared in your application

Learn more about why you need to provide bank statements when applying for a personal loan.

How to set yourself up for a successful loan application

There are a few things you can do to give yourself the best chance of getting a personal loan approved. Before you apply:

Make sure you meet the lending criteria

Every lender has certain conditions you must meet in order to qualify for a loan. Check out our basic loan eligibility as a great starting point.

Take a look at your credit history

Any missed payments, arrears or debt-related activities are recorded in your credit history. Lenders look at this, so it’s super important to build up a good track record of paying your bills on time to protect your credit rating. Grab a free copy of your credit report to find out what your credit score is and know what you’re up against. and ways you can improve it if it’s not looking too good.

Tidy up your bank statements

Your bank statements reveal a lot about your spending habits. Lenders want to get a good idea of your financial situation and reviewing your bank statements is all part of it. Having a good account history by doing things like not overdrawing, putting some savings aside and reducing any credit card debt shows you’re ready to take on a personal loan.

Work out what you can afford

How much will you be able to pay off each month based on your current income and lifestyle? Knowing this will help you figure out how much you can realistically borrow to ensure you can comfortably manage the repayments.

Be honest

Honesty is the best policy when applying for a loan. Stretching the truth about your financial situation for fear of missing out will only backfire on you. Speak to a lender like Fair Go Finance if you’re worried and we’ll be able to help you determine what you can afford.

Now you’re ready to apply with confidence!

Do you always perform credit checks?

Yes – it’s part of being a responsible lender. Running a credit check allows us to pull your credit reporting information, which includes your existing and past credit activities, previous loan applications and your credit score. Looking at this gives us an idea of how you handle credit and how much room you have to borrow. We do this with every loan application we receive to ensure a fair assessment for all.

What happens if I apply and then I get declined?

We have a minimum 30-day rule, so if you get declined there is a 30 day wait before you can reapply again. We do this for two reasons.

Firstly, we want to protect your credit report from more enquiries. Every time you apply for a credit product, be it a loan or a credit card, it will impact your credit report. If you applied for back-to-back loans constantly, your score would likely decrease and further impact your chances of getting credit.

Secondly, this gives you time to improve your bank statement conduct. We assess 90 days’ worth of bank statements, so waiting 30 days, or a third of that time, gives you a terrific opportunity to improve your conduct. This includes paying any defaults, withdrawing less of your pay cheque as cash, having less cash used for buy now pay later payments and ensuring you don’t run out of cash before each pay cheque.

If you get declined, it can feel like we (the loan company) aren’t giving you a ‘fair go.’ But we genuinely do, because we are passionate about our responsible lending criteria, and we want to avoid our customers facing financial hardship.

Will a declined application harm my credit score?

Being knocked back for a personal loan doesn’t directly hurt your credit score. But the enquiry into your credit history after submitting a loan application can impact it.

When you apply for a personal loan, we perform a credit check to pull your credit report from one of the 3 main credit bureaus — Experian, Equifax or illion This is known as a hard inquiry and it will appear on your credit report.  Enquiries can cause your credit score to drop, particularly if you have a substantial number of them. Enquiries stay on your credit report for up to 2 years.

The lower your credit score, the harder it will be for you to get a loan. If you do get a loan, it is very likely the interest rates are likely to be higher than if you had a higher credit score.

How can I fix my credit rating?

The higher your credit score, the healthier your credit report. A high credit score shows you have a good history of managing your credit and making repayments on time.

If you have a low credit score you can improve your rating by:

  • Proactively check your credit report for any errors – such as late payments that have been incorrectly reported or any fraudulent activity. Requesting a credit report or checking your credit score won’t affect your credit rating.

  • Pay your bills on time – any defaults or late payments can have a negative impact on your credit score.

  • Pay your credit card off each month – if possible try pay off your entire credit card as this shows you can manage your credit sensibly.

  • Don’t use more credit than you need – having access to less credit means you spend less and shows you don’t rely on credit as much.

  • Limit your credit applications – with every credit application comes a credit check from the lender. And that means a hard inquiry, which will appear on your credit report and can impact your credit score.

Read more about improving your credit score

Are there early payout fees?

We don’t charge early payout fees on our personal loans or our line of credit loans.

If you get a car loan and want to pay it out before you have repaid 50% of the loan, then there is an early payout fee.

How do I apply?

We’ve kept the application process as simple as we can.

, it takes 6 minutes to complete our smart online application form.

We ask for information about you, your work situation, your living situation and that you securely provide your bank statements.

If you aren’t approved straight away, your application will go to an assessor to be manually assessed which should be completed in 1 – 2 business days.

If you are approved straight away, or approved after assessment, you can accept your offer by electronically signing with a secure SMS code that will be sent to your mobile.

Our real-time funding will make sure your funds are transferred ASAP, so you can start using your money sooner.

And if you need any help, we have an Australian support team ready to assist.