How do I know if my credit score is bad?

You can check your credit score using any of the free national credit reporting bodies, such as Equifax. You will be given a credit rating; an Equifax credit score between 622 and 725 is considered good, above 725 is very good. A bad credit rating is any score from 400 to 500, and any score below 400 is considered poor.

Can I get a loan with bad credit?

Yes, you absolutely can get approved for a loan with bad credit. That’s exactly what Freedom Loans does best.

How long does negative information remain on a credit report?

This depends on the type of information but generally speaking, negative information will stay on your credit reports for five years.

Negative information includes things like late or missed payments, accounts that have been sent to collection agencies, court judgements, accounts not paid as agreed, debt agreements or bankruptcy.

Will my divorce affect my credit report?

A divorce won’t affect your credit rating, but any missed payments will. Many people start missing payments or making payments late as a result of their time-consuming (and often costly) divorce proceedings.

What is debt consolidation?

Debt consolidation is a way to combine all your current debt so that you are left with only one loan. In a nutshell, consolidating your debt means combining all your loans into one new home loan.

You use debt consolidation to pay off all your outstanding loans (car loans, credit card debt, personal loans and so on); combining multiple debts into a single, larger loan, usually with better interest rates and lower monthly payments.

Can I get a loan if I am currently in a debt agreement?

No, you can’t get a loan if you are currently in a debt agreement; you will need to pay off that first and then build a deposit. However, you can pay it out early using refinancing. Refinancing will allow you to pay out remaining owing on the debt agreement.

How do I know Freedom Loans will get me the best result?

Our experienced team of professionals have helped thousands of people in various states of financial distress, all around Australia. Read our testimonials page to hear from some of the people we’ve helped.

How does Freedom Loans get access to loans I can’t?

We’ve been helping all people from all walks of life get loans since 2003, so we have intimate knowledge of the banks, which of them will offer bad credit loans, which of them can be trusted, what sort of questions they’ll ask you and how best to answer.

We’ve also done all the various tricky application processes countless times, so we even know which individual loan officers say “yes” most often, and we’ve built good relationships with them. We also have a wider network of lenders that we know are trustworthy.

In a nutshell, the most difficult parts of getting a loan – going through the complicated and admin-heavy application process – is easy for us.

How much equity do I need to refinance?

Ideally, you should have at least 20% equity in your home.

The absolute maximum LVR (loan to value ratio) is about 90%. Meaning that – at maximum – you’ll be able to borrow 90% of the value of your home and have at least 10% equity in your home to refinance, although a 90% LVR typically isn’t always the best option for the borrower. Speak to one of our experts to find out more about your equity options.

Do I need a good credit record to refinance?

No, you don’t. Bad credit refinancing is our speciality!

How long will it take to get a bad credit loan approved?

This differs from case to case. Very broadly speaking, we can get same day verbal approval for some loans, but it does depend on the type of loan and the situation.

Where do Freedom Loans operate?

We help people all across Australia.

Buying a Home with Bad Credit

Has anyone got a home loan with bad credit?

Many Australians with bad credit have successfully secured home loans. Success often depends on the right advice and finding a lender that matches your circumstances.

Bad Credit Home Loans

Which lender is best for bad credit?

The best lender for bad credit varies depending on your specific situation. Our expertise lies in matching you with the lender best suited to your unique needs.

Bad credit home loans guaranteed approval.

While no loan can be guaranteed approval, we strive to maximise your chances by targeting lenders known for their flexible criteria for bad credit borrowers.

What is the easiest home loan to get approved for?

For individuals with bad credit, home loans from specialist lenders designed for such situations are generally easier to get approved for.

What’s the best mortgage company for bad credit?

The best mortgage company for bad credit will depend on your specific needs and circumstances. We pride ourselves on being adept at finding the right match for our clients.

Refinancing Considerations

What factors should you take into consideration when deciding to refinance?

Consider your goals for refinancing, current financial situation, potential interest rates and fees, and the long-term impact on your finances.

What are the primary considerations that should be made when refinancing?

Key considerations include how refinancing aligns with your financial goals, the terms of potential new loans, and the overall costs involved, including any penalties for early loan repayment.

Fixing/Improving Credit Scores

How do you fix poor credit?

Improving poor credit involves reviewing your credit report for errors, paying bills on time, reducing debt, and limiting new credit inquiries.

What are five tips for improving your credit score?

1. Pay your bills on time.
2. Keep credit card balances low.
3. Limit new credit applications.
4. Pay off debt rather than moving it around.
5. Regularly check your credit report for inaccuracies.

Which strategy helps you improve your credit rating?

Consistently managing your finances responsibly over time is the best strategy, including making timely repayments and reducing overall debt levels.

What steps can an individual take to improve a credit score?

Steps include consolidating debts, setting up automatic payments to ensure bills are paid on time, and keeping credit utilisation low.

How can I improve my credit score in Australia?

In addition to the above steps, engaging with a financial adviser or a credit repair service can provide personalised strategies tailored to the Australian credit system.

Partner’s Credit Impact

Will my partner’s bad credit affect me getting a mortgage?

If you’re applying for a loan jointly, your partner’s credit history can impact the application. However, solutions like applying in a single name or finding lenders who consider other factors may be possible.

What happens if one partner has bad credit?

One partner’s bad credit can affect joint loan applications, but individual circumstances are considered, and options like a guarantor or non-conforming loans may be available.

Recent Changes in Regulations or Policies

What are the new lending laws in Australia?

Recent changes have focused on tightening lending criteria to ensure responsible lending. Our team stays updated on all changes to navigate these regulations effectively for our clients.

Did CBA cut loan buffers for some borrowers?

Banks periodically adjust their lending criteria based on economic conditions and regulatory guidance. We can advise on the current stance of major banks like CBA and how it affects your application.

What is the RG209 update summary?

RG209 is ASIC’s guidance on responsible lending conduct, emphasising the need for lenders to make reasonable inquiries about borrowers’ financial situations. We can help you understand how this affects your loan application.

Why would I get declined for a personal loan?

Declines can result from factors like poor credit history, insufficient income, or high debt levels. Understanding and addressing these factors can improve future application outcomes.

Loan Application Rejections

How can I avoid rejection of a personal loan application?

Ensuring accurate and complete documentation, improving your credit score, and choosing the right lender for your situation can help avoid rejections.

What happens if you get rejected for a loan?

A loan rejection can be disheartening, but it’s an opportunity to review and improve your financial situation. Consulting with a specialist can help you understand the reasons behind the rejection and plan your next steps.

Can a bank refuse a personal loan?

Banks can refuse a personal loan based on their lending criteria. If refused, exploring options with specialist lenders or seeking advice on improving your application is advisable.

General Lending Criteria

What are lending criteria?

Lending criteria are the standards set by lenders to assess loan applications. These often include income levels, credit history, employment stability, and debt-to-income ratio.

What is the lowest credit score to buy a house in Australia?

There is no set lowest score, as some lenders focus on factors beyond the credit score. However, a higher score improves your chances with more lenders.

Can I get a mortgage with bad credit history?

Yes, it is possible to get a mortgage with a bad credit history. Working with specialist lenders and brokers can open up avenues for securing a mortgage despite past financial issues.