Are Bad Credit Loans Safe?

By Angela Monroe - May 11, 2022

are bad credit loans safe

No matter your credit history, pretty much everyone needs credit (eg. a car loan) at some point in their lives – but are bad credit loans safe?

Finding out is pretty important as having bad credit can leave some people in a delicate position.

We investigate and answer the question; are bad credit loans safe?

In short: Yes they are, if you take the proper precautions and find a reputable broker and lender.

These days we hear a lot about bad credit loans. Are they really what they claim to be and are they a safe bet when it comes to financing? 

Having bad credit won’t stop you needing a car to get to work or ferry family members.

A bad credit loan explained

It means a loan from a lender (eg. a bank, financial institution) that specialises in lending money to people with bad credit. These lenders have policies, staff training and experience in helping people with bad credit and as such, typically they charge a higher interest rate and have more stringent lending guidelines, for example capped borrow amounts.

It’s not surprising that most people are somewhat sceptical when it comes to bad credit car loans as many of these lenders are not the ones we’re familiar with, such as the big banks for example.

DYR (Do Your Research)

In the past, we’ve heard a great deal about loan shark rates, and loans where a payment that was only a day late would result in fees and other problems. There’s plenty of horror stories to go round.

Luckily, avoiding becoming a horror story is easy.

There’s good news if you have bad credit

Today’s bad credit lenders are, for the most part, very reputable. Of course, as with anything, it’s important that you do your homework and ensure the lender you are planning to get your bad credit loan from has a stellar reputation.

Loans For People With Bad Credit has a panel of bad credit lenders who are all accredited, reputable and, of course, legitimate businesses and organisations.

A bad credit loan offers you the opportunity to begin to rebuild your credit. These lenders can be found in a number of places. There is likely at least one right within your community. There are also many of these lenders available online, offering a variety of loan types.

Our team is determined to match your circumstances to as many possible lenders and loan options as we can. That means, before committing to anything, you’ll be able to see all the details, have a think and do any research or ask any questions you may have.

team work

From what lenders are bad credit loans safe?

Whether you are looking for a bad credit home loan, in need of a second chance car loan, or hoping to get your first personal loan now that things are turning around, bad credit loans today are a great way to begin to rebuild your credit, and to get that loan you so desperately need right now.

So, what should you look for when seeking a lender for bad credit loans?

  • Do they post a phone number and address in Australia?
  • Phone them to verify their existence if you require peace of mind
  • Check with ASIC 
  • Are they asking for more information than is generally requested? Proceed with caution
  • Is the interest rate way too high? Look for another lender

It’s very important to check your credit file (for free) as well, even if you choose to not get a loan in the end!

Checking your credit file lets you know exactly where you stand as these documents show exactly what lenders will see too, for example;

  • Past credit enquiries
  • Repayment history
  • Defaults and late repayments
  • Outstanding debts

A quick search online can tell you a lot about any particular company. Make use of this resource.

apply with us

Are bad credit loans safe? SUMMARY

If you select a reputable lender through a reputable broker / bad credit organisation, you’re in good hands.

Going it alone and trying to tick every little box (and learn them all) can be pretty daunting – and leave you open to problems in the future.

If you have any questions or are ready to test the water and get some options matched to your circumstances, contact the Loans For People With Bad Credit today.

We’ll provide you with everything you need to know and, of course, we ONLY work with legitimate, registered and reputable lenders.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.


antony deutscher

April 28, 2018

i would like to know if i can get a personal loan to buy a car and medical bills, as do not know if i would qualify i never have had bad credit before i have paid out 2 home mortgages before and as we were living in our third home we both lost our jobs and then to cap it off as we were living in bundaberg they had two massive floods in 2010 and 2011 which we could not sell our home no one wanted to buy the house,after 6 months we sold but we were short to pay out the rest of the mortage so we got a debt negotiator to pay the bank out and we would pay the rest we have being the loan of weekly for the past few years on what we owe and i think there is only about 3k to pay out the mortgage.but i think they wont let me have loan and i desperetly need a car.thankyou.

Angela Monroe

May 11, 2018

Hi Anthony, to answer your question, we’d need to have a chat to you to complete a loan pre-assessment. Having a home of your own will definitely count in your favour! Call 1300 769 384, or complete a quick quote form and we’ll talk to you soon.

Floyd Rex Georgetown

July 18, 2018

Do I need a guarantor.


July 26, 2018

I currently have a low credit score of around 400. Over the last 4 years I have made a weekly payment to my debtors.

I am trying find away I can secure a personal loan 2 pay off the remaining debts as well as money for my partners and my up coming wedding.

I know my chances are low but no harm in asking


Angela Monroe

July 26, 2018

Hi Xavier, no worries at all. Definitely no harm done in checking with us, we’re happy to help out. We’ll send you an email to take this discussion forward since it could involve providing us with a bit more information about your finances.

Tran Tu Can

September 3, 2018

I need Loan 50000 business. I work full time and driver uber. But my credit very low u help

Maketalena Maka

September 4, 2018

Hi Team,

I am interested in applying for a loan for my wedding in Dec. Just have an enquiry to ask

1. If my credit score is below 500 for the fact that I do not have any defaults but credit score was affected due to too many enquiries on my file. I honestly had no idea enquiring affected your credit score.

Maketalena Maka


September 18, 2018

I would like to no if you can help. I would love to pay out some of my debts. But my credit score is very low and to many enquires on my credit file. Can you help please

Jodie johns

October 13, 2018

Hi I would like to go for a loan so I can get a few things for my kids and they will be happy if I can get a loan to help them get food

Angela Monroe

October 29, 2018

Hi Jodie, thanks for reaching out to us. You can easily start the loan application process by submitting a quote form at

We’ll get in touch with you asap and help you out the best we can.

Suella Wason

October 17, 2018

I wish to apply for a personal loan to my cover bills and purchase a cheap car to go

Suella Wason

October 17, 2018

I been working for almost 6 months

I wish to apply for a personal loan to my cover bills and purchase a cheap car to go

Angela Monroe

October 29, 2018

Hi Suella,

Thanks for reaching out. Generally you’ll just need to provide us with your last two payslips as proof of income. However, there will be other requirements as well which you’ll need to meet in-order for a loan to be approved.
It’s best to speak to one of our loan support team members to find out exactly what documentation you’ll require to get approved for a loan. The best way to do this is to fill out the form on the page at to move things along

Vince Cavalieri

October 19, 2018

I need to do a debt consolidation to make my Repayment’s easier. 2 credit cards and small cash loans. I have credit score of 550 so have been knocked back so have given up in applying. No defaults on my credit score just to many enquires. Need around $75k

Karen haines

November 10, 2018

I am looking to consolidate my debt of around $50000 i have a mark on my credit rating but it is a paid default from a few years ago and my husband has 1 default on his but the debt is included in the 50000 my husband and i both work we have a home loan 125000 owing and a valuation of 170000 i would like to know if we have any chane of getting approved

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