Bad Credit Loan Options

Loans with a Poor Credit History FAQs

• What is a bad credit loan?

  A bad credit loan is a type of loan tailored towards people who have poor credit scores, who may be overlooked and rejected by mainstream lenders and banks, due to their credit score. Credit scores are an estimation of an individual's credit worthiness. This helps lenders make a quick decision on whether to lend to them, based on the credit score. Credit can be negatively impacted by missing payments, defaults, bankruptcy, part IX debt agreements or many other situations, including excessive gambling. Credit can be improved by making regular payments on loans or services over time. Bad credit loans are available for many purposes including car loans with bad credit, personal loans with bad credit, home loans with bad credit and more. At Rapid, we offer a Free Credit Check option, with no impact on your credit score!

• Can I get a bad credit loan?

  Yes, it is possible to get approved for a loan, even with bad credit. Every customer's financial situation and credit history is different, which will affect your chances of approval with different lenders. So even if you have had your loan application recently rejected, we could still help get your application approved! At Go Rapid, we have over 20 years bad credit loan experience. We will review your current situation and finances, and can present your application in the best light, to the right lender. By applying through Go Rapid, we may run a 'soft' credit check on your credit file, which is completely safe. It will not leave a mark on your file - unlike when applying directly with lenders. We could help! Check out our bad credit loans and get started today.

• Can I get a car loan with poor credit?

  Yes, it's possible to get a car loan with poor credit. However, there are a few things to keep in mind:

  • Higher Interest Rates: Lenders will charge higher interest rates to compensate for the increased risk associated with lending to someone with poor credit.
  • Smaller Loan Amounts: You might not be approved for as large a loan as someone with a better credit score. However, when you are applying for a car loan with poor credit, your ability to repay the loan or affordability of the loan is just as important.
  • Secured Loans: Most lenders will require that you secure the loan against the value of the car.
  • Specialised Lenders: There are lenders in Australia that specialise in providing car loans to people with poor credit or complex financial situations. They all have different rules on who they will lend to, so it is worth seeking the assistance of a broker who specialises in poor credit, such as Go rapid.
  • Consider a Broker: A finance broker, such as Go Rapid, can help navigate the options available to you and find a suitable loan product - without negatively impacting your credit rating along the way. See how Go Rapid can help get your car loan with bad credit approved.

• Can I get a home loan with poor credit?

  Yes, it is possible to get a home loan with bad credit. Go Rapid can help find the right lender who could assist you. We have 20 years experience helping people with bad credit get their home loans approved. Taking into consideration your credit history and current finances and needs, we can either help you find a loan right away, or guide you through the steps you may need to take to fix up your finances or credit report.

• What credit score is considered bad credit?

  In Australia, credit scores range from 0 to 1,200. How these scores are labelled can vary between credit reporting agencies, but generally:

  • 0 to 509: Below Average - Bad Credit
  • 510 to 621: Average Credit
  • 622 to 725: Good Credit
  • 726 to 832: Very Good, 833 to 1,200: Excellent Credit

  If your score is in the 'Below Average' range, lenders might see you as a higher risk. It could be a bit harder to get your loan approved, however, we could help. Go rapid offer our customers a Free Credit Check option, with no impact on your credit score, so you can find out where you stand.

• Will applying for loans negatively affect my credit score?

  When you apply for a loan, the lender usually does a 'hard inquiry' on your credit report. Each hard inquiry can slightly lower your credit score. However, the impact is often temporary and can lessen over time. If you make multiple loan applications in a short period, it might give the impression that you're in financial stress, which can have a more significant effect on your score. If you are worried about your credit, it is a good idea to use a broker like Go Rapid, so that we can minimise any negative effect on your credit score, and help get your loan approved.

• Can debt consolidation help improve my credit score?

  Debt consolidation means putting all your smaller debts, like credit card bills or car loan payments, into one bigger loan.

  This could help your credit score for several reasons:

  • One Monthly Payment ensures you're less likely to miss a payment.
  • Less Credit Card Debt can help increase your score.
  • Possible Lower Interest rates allow you to pay off the loan faster.
  • A Good Payment Record can enhance your credit score.
  • Avoiding Extra Fees means fewer chances for late payment fees. 

  After consolidating all your debts into one loan, it's important not to accrue more debt. Speak to an expert like Go Rapid if you need assistance with Debt Consolidation.

• Can I get a guaranteed-approval bad credit car loan?

  There is no such thing as guaranteed approval for bad credit loans - but we could help. Obtaining finance with very bad credit can be challenging due to obstacles like defaults, part ix agreements, and bankruptcy. But with hard work and patience, loan approval is possible. At Rapid, we're determined to find the right finance for your situation. Call 1300 467 274 to find out how we could assist you, or apply online.

  Learn more about your loan options with poor credit personal loans, home loans with poor credit or car loans with poor credit. Similarly, if you are receiving government benefits, you may require assistance getting your car loan approved on Centrelink.

• Can I get an instant decision on a bad credit loan?

  Any loan application requires time, and applicants with bad credit may face additional challenges compared to those with a clean credit history. While we search for the best possible bad credit loan for your situation, we'll provide a fast, honest assessment of your chances. If you have very bad credit, we may still be able to assist, although not guaranteed. However, even if we can't assist you now, we can guide you on improving your chances in the future.

• What information is used to assess a bad credit loan?

  Similar basic information is used to assess applicants, regardless of their credit. This includes personal and financial details, such as earnings and work history. The primary difference arises during the credit check, where issues like multiple defaults, bankruptcies, or part ix agreements can make obtaining finance challenging. But with Rapid Finance, we emphasise the positive aspects of your application to present the best case possible to potential lenders.

• Can I get car finance now that I've paid out my part ix debt agreement?

  Congratulations on paying down your debts! We've assisted many individuals with a settled part ix on their credit file. Our expertise ensures the paid-out ix is fairly considered during your application instead of being the focal point. Call 1300 467 274 to discover if you qualify, or visit our car finance with bad credit page for more details.

• What size deposit will I need for a car loan if I have bad credit?

  If you have outstanding debts, consider using your savings to settle them first. This will enhance your chances of securing finance. If you're debt-free, a larger deposit is beneficial as it reduces the lender's risk, potentially leading to a favourable interest rate. Call 1300 467 274, and we'll help convert that deposit into a new car.