Credit history not perfect? Let’s talk anyway.
Defaults, late payments or past hardship don’t have to shut you out. Some lenders look beyond the score to today.
How it helps
A credit score is a snapshot of the past. Specialist lenders know life happens, like job loss, separation, illness or a failed business, and look at your current income and stability.
Your broker will be straight about what’s realistic, the cost, and whether to repair your credit first. A good broker never pushes a loan that makes things worse.
What’s included
- Lenders who consider defaults and past arrears
- Honest advice about rates and costs
- Options to rebuild your credit over time
- Guidance on whether to wait before applying
- One application, not a string of declines
If you’re in financial difficulty, talk to your lender about hardship options, or call the free National Debt Helpline on 1800 007 007.
How lenders read your credit file, and what you can do about it
Lenders look beyond your score at how recent issues are, whether defaults are paid, current debts and income stability. Check your free reports from Equifax, Experian and illion and fix errors; if debts are overwhelming, call the National Debt Helpline (1800 007 007).
Read the full explanation
Your credit report records your credit enquiries, open accounts and limits, repayment history over the last two years, defaults and certain court judgements or insolvency records. Lenders look beyond the score to the story: how recent the issues are, whether defaults have been paid, how much you owe now and whether your income is stable. A single paid default from years ago is usually viewed very differently from recent missed payments across several accounts.
You can request a free copy of your credit report from Equifax, Experian and illion, and it is worth checking all three because they can hold different information. If you spot an error, you can ask the credit reporting body or the credit provider to correct it, and you can escalate to the Australian Financial Complaints Authority if needed. Be wary of paid credit repair firms charging for things you can do yourself. If debts are overwhelming, call the free National Debt Helpline on 1800 007 007.
- People with paid or explained defaults
- Borrowers recovering from hardship or separation
- Those with a few late payments, now stable income
- People declined elsewhere wanting honest guidance
Pros and watch-outs
Pros
- Lenders who consider your current situation
- Rebuild credit with on-time repayments
- Honest advice on applying now or waiting
- May help avoid repeated declined applications
Watch-outs
- !Usually higher costs than standard loans
- !Smaller amounts or shorter terms may apply
- !Missed repayments could worsen your credit
Costs and fees to compare
The interest rate is only part of the cost. Ask your broker to show these side by side.
Higher interest pricing
Specialist lenders usually charge more for risk. Compare total repayable, not just repayments.
Establishment fees
Can be higher with specialist lenders. Ask if they’re added to the loan or paid upfront.
Risk or loan protection fees
Some specialist loans add risk fees; ask your broker to explain each.
Ongoing account fees
Monthly fees may apply for the full term, so budget for them.
Late payment fees
Missed repayments trigger fees and further credit harm. Choose a repayment you can reliably meet.
Tips to strengthen your application
- 1Check all three credit reports and fix any errors.
- 2Pay or arrange outstanding defaults; paid ones are often viewed better.
- 3Avoid several applications in a short time.
- 4Gather evidence explaining past issues, like a job loss letter.
What happens next
Be upfront
Tell your broker about any past issues. It helps them choose the right lender.
Check your file
Your broker helps you understand what is on your credit report.
Match the lender
We approach a lender likely to say yes.
Rebuild
On-time repayments can help rebuild your credit profile.
Common questions
Can I get a loan with a default?
Possibly. Some lenders will consider paid or explained defaults, especially if your circumstances have since improved.
Will the rate be higher?
Usually, yes. Specialist lenders charge more to reflect risk. Your broker will show you the total cost so you can decide.
Should I repair my credit first?
Sometimes that is the better option. Your broker will give you an honest view, even if the answer is to wait.
How long does a default stay on my credit file?
In Australia, a default generally stays on your credit report for five years from the date it was listed, even if you pay it. Paying it can still help, as the listing is updated to show it has been paid, which many lenders take into account.
Can I get a car loan after bankruptcy?
It may be possible, particularly once you have been discharged and can show stable income. Some specialist lenders consider applications from people with past bankruptcies, though costs are usually higher and conditions apply.
Are credit repair companies worth it?
Many charge fees for things you can do for free, such as requesting your credit report or disputing errors. Legitimate errors can be corrected at no cost through the credit reporting body, the credit provider or the Australian Financial Complaints Authority.
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