Bad Credit Personal Loans – Frequently Asked Questions

Your questions answered

Whatever your reasons for having bad credit, you may be in a position where you need to get a personal loan. Many people with bad credit find that they are rejected by banks and bigger lenders, even when applying for a small personal loan.

We’re here to make things easier for you. We can guide you through the bad credit personal loans process and help you get the right loan for you. Check out our frequently asked questions below or contact us for advice.

How do I know if I have bad credit?

Most people know if they have bad credit, but if you’re not sure of your credit rating, it’s really important that you check your credit score today.

It’s free and easy to check your credit score online and it’ll help you to understand what you can expect when applying for a personal loan.

Reasons for having bad credit can be varied, although they generally range from having no existing credit history to having a history of missed repayments or defaults on previous loans.

Can I improve my bad credit?

Yes, there are ways to improve your bad credit. Firstly you should always check that all the information on your credit history is correct – if there are errors which are affecting your credit rating, you can ask for these to be fixed.

Having a stable income, a stable job, and a stable address will help to improve your credit rating. You’ll also need to ensure that you make all repayments for any future loans on time, as missed payments can affect your credit score.

Generally, it’s quite hard to improve your bad credit immediately – it’s often a process which can take a few months. So if you’re looking for a quick personal loan, you may still need to apply for a bad credit personal loan.

How much can I borrow for a bad credit personal loan?

This will depend on your finances and your financial history. A lender will review these and calculate exactly how much they are happy to lend you – so the amount may vary between borrowers and between lenders.

Generally, bad credit personal loans can be for amounts of up to $5,000 but you should always make sure that you’re not stretching yourself financially when applying for the loan as you need to be able to make repayments in full.

What are bad credit personal loans used for?

Most people use bad credit personal loans for unexpected costs or to help them out if they’re short of cash and have bills to pay.

You may need a personal loan for a large medical bill, unforeseen car repairs, or to help you out while money is tight.

Can I use a bad credit personal loan to consolidate other debts?

Yes, bad credit personal loans can be used to consolidate other debts you may have such as credit cards or outstanding high interest debts. By consolidating them with a personal loan, you’ll benefit from lower interest rates and fees and should use this to get your finances back on track quicker.

Ask for advice if you’re unsure about debt consolidation. We are happy to talk you through the options and help provide you with the information to make the right choice.

What documents do I need to get a bad credit personal loan?

Having your documents ready always helps to make the personal loan process easier and avoids unnecessary delays.

You’ll need to have a number of documents available, including

  • Proof of address
  • Bank account details
  • Proof of income
  • Proof of residency

How high will the interest rate be on a bad credit personal loan?

It’s certainly true that interest rates can be much higher on bad credit personal loans. Unfortunately, there are some lenders who can charge up to 30% on bad credit loans. We can help you avoid these extreme interest rates and to find a bad credit personal loan that suits you better.

How long does it take to get a bad credit personal loan?

We understand that you want to get your personal loan as soon as possible, and may have outstanding bills that need to be paid using the funds. We always aim to get a personal loan approved for you as soon as possible.

Generally, approvals can be made as quickly as one business day, but this depends on your personal circumstance as well as the individual lender.

I am an ex-bankrupt. Can I apply for a bad credit personal loan?

Yes, but you’ll need to have already been discharged from a bankruptcy and have held a clean financial record for over 18 months. You may face higher interest rates due to the bankruptcy on your credit history, but it should be possible to get a bad credit personal loan.

Get started with a bad credit personal loan

Whatever your bad credit situation, contact us today to find out how we can help you get a bad credit personal loan. With years of experience as bad credit specialists, we can help you find the right loan for you. Call us for advice on 1300 769 384.