Can you get a loan with bad credit? 

If you’ve faced some financial challenges and have less-than-perfect credit, you may be wondering “Can I still get a loan?” While we can’t give you a straight yes or no answer, as it depends on your personal circumstances, there are solutions available to help individuals with poor credit. At Fix My Credit we know how people value financial freedom and think everyone deserves a second chance. 

If you’re thinking about applying for a loan, but are worried you have bad credit, here are a few important things we think you should understand. 

What is bad credit? 

In the realm of credit scores, a numerical representation is used to assess an individual’s creditworthiness. This score falls within specific ranges, and each category reflects a person’s credit ranking. 

Ranging from “excellent” to “below average,” these classifications play a significant role in determining a person’s eligibility for loans, credit cards, and other financial opportunities. Credit scores can be classified into different categories based on credit ranking. Scores ranging from 833 to 1,200 are considered “excellent,” while 726 to 832 is “very good,” 622 to 725 is “good,” 510 to 621 is “average,” and scores from 0 to 509 are classified as “below average”.

How to check your credit score? 

In Australia, you can check your credit score and assess whether you have bad credit by getting a copy of your credit report. There are three main credit reporting agencies in Australia: Equifax, Experian, and illion (formerly Dunn & Bradstreet). 

You are entitled to request a free copy of your credit report once a year from each of these agencies. To do so, you can visit their websites and follow the instructions for obtaining your credit report. Alternatively, you can also contact them directly via mail or phone to request a copy. Alternatively, the team at Fix My Credit can obtain a copy of your credit report. 

Keep in mind that each credit reporting agency may have slightly different scoring models, so your credit score could vary slightly between them. If you find that your credit score is in the lower range or if there are any inaccuracies or negative entries on your report, it may indicate the presence of bad credit.

Can you get a loan with bad credit? 

There’s a common belief that it’s impossible to get a loan when you have bad credit. Yes, it’s true that many traditional lenders are hesitant to loan money to individuals with bad credit, there are still lenders who cater specifically to those with less-than-perfect credit scores.  We recommend doing your research before applying for any loan to ensure you’re accessing terms and interest rates that are right for you. 

Will you be charged higher interest rates if you have bad credit?

Often individuals with bad credit will be offered loans with higher interest rates compared to those with good credit. Working on improving your credit may help you access loans with lower interest rates. 

Can you improve your credit score? 

Contrary to popular opinion, your credit score isn’t fixed. It can change over time depending on your financial habits and credit management. When you work with Fix My Credit we can provide you with the right strategies and guidance so you can take control of your situation and improve your credit score. Fix My Credit will analyse your credit report and identify areas for improvement, implementing effective solutions to improve your credit. 

At Fix My Credit we are dedicated to empowering individuals to take control of their finances. Our credit repair services are tailored to your specific needs, focusing on removing inaccurate information, negotiating with creditors and establishing positive credit habits. 

As your credit score improves, doors will start opening to better loan options, lower interest rates and increased financial opportunities. 

Getting a loan with bad credit may seem challenging, but it’s not impossible. If you take steps towards improving your creditworthiness with Fix My Credit, you may be able to see a brighter financial future. Contact us today to learn more about our credit repair services. Complete our quick contact form and we’ll be in touch with you as soon as possible!