Can I get a bad credit loan with a default in my history?

By Angela Monroe - November 21, 2018

Can I get a bad credit loan with a default in my history?

Having bad credit can be stressful – especially if you’re looking to get a bad credit loan with defaults. Its disheartening to learn you won’t considered for a loan, simply because you have a default in your credit history.

At Loans for People with Bad Credit, we work specifically with people who have bad credit, often for various reasons. We can help connect you with lenders who are able to offer bad credit loans with defaults and will advise you on the best options for your individual circumstances.

It’s easy to get a default in your credit history but it can take a while for your credit record to recover.

Getting a bad credit loan with a default

Many people want to know whether it’s even possible to get a bad credit loan if you have a default in your credit history. The answer is yes. It’s possible to overcome this obstacle – by finding the right lender and taking every step possible to show your worth as a borrower in other ways.

You may find it harder to get a bad credit loan with defaults but it’s certainly not impossible.

Think before you act

This is really important when it comes to getting a bad credit loan, especially if you have a default in your credit history.

Think about why you have a default and whether you have managed to get back on track financially. Are you able to continue being financially stable or will taking out another bad credit loan potentially result in further financial problems for you?

Be careful about taking out a loan if you’re struggling to pay back existing debts. Your lender may see you as a high risk borrower meaning you’re likely to encounter higher interest rates and fees – this could mean that you have a larger amount to pay back long term.

Consider whether you can wait until your existing bills or defaults have been cleared before you apply for a loan. Often timing your application for when you are more financially stable can help you to get a better loan offer from lenders.

Getting a bad credit loan with defaults

If you do get a bad credit loan with a default in your history, it’s likely that your lender will give certain parameters that you have to keep to. Failing to stick to these could result in you defaulting on your bad credit loan, which could seriously damage your credit rating long term.

To make the most of a bad credit loan with a default, you should try to stick to the following:

  • Always make repayments on time and in full – whether you need to set reminders in your calendar or you have to set up a direct debit or standing order, you can’t risk defaulting on your loan or making late/missed payments.
  • Budget carefully – never take out a bad credit loan that you don’t think you can afford to pay back. Whatever you need it for, and however tempting it might be at the time, it’s simply not worth it as failing to pay it back will lead to bigger financial problems and affect your ability to borrow in the long term.
  • Use the loan properly – make the most of your loan if you decide to get a bad credit loan with defaults. Use the money for a useful purpose and to help you get on your feet again financially. Get yourself back on track with the loan rather than into greater financial difficulty.

Ask for help

Our team of bad credit experts work with people with bad credit regularly and have the knowledge and expertise to help you make the right decision. Call 1300 769 384 to find out how we can help.

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.

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