Getting a loan with bad credit

Bad credit is not one thing. A single telco default from four years ago, a mortgage arrears history from last year, and an active payment plan are three completely different applications, and lenders treat them differently.

What lenders assess after the score

Recency

Age of the negative mark matters enormously. A default from three or four years ago with clean conduct since reads as a resolved problem. One from three months ago reads as an active one.

Whether it is paid

Paying a default does not remove it from your file — it stays five years regardless — but it updates to show as paid, and lenders view that far more favourably than one left outstanding.

Employment stability

This is the factor that most often decides a marginal application. Steady full-time employment with a reasonable tenure can outweigh a poor score. It is also the reason our panel cannot help applicants who are not currently working: without income there is nothing to assess.

Recent enquiries

Often the deciding factor, and the most self-inflicted. Applying repeatedly after declines creates a pattern that causes further declines.

What actually improves your chances

1. Stop applying. Every declined application makes the next one harder. Let enquiries age.
2. Get your free credit report from all three bureaus and check it. Errors are more common than people expect, and correction is free.
3. Pay outstanding defaults if you can. The listing remains, but paid status matters.
4. Close unused credit cards. Limits reduce assessed capacity even at zero balance.
5. Build clean repayment history. Comprehensive credit reporting means on-time payments actively help. Twenty-four clean months changes a file substantially.
6. Consider security. A secured loan is often achievable where an unsecured one is not, and it prices better.

What to be careful of

Where a broker helps

Lender credit policies are not published. Which lender tolerates a two-year-old default, which accepts casual income, which requires six months in a role — none of this is visible from outside. Approaching the wrong lender does not just waste time; it adds an enquiry to your file and makes the next application harder.

We assess your position once and approach only the lenders with a genuine prospect of approving you. One enquiry instead of six.

Quick answers

Can I get a loan with a default listed?

Often, yes, particularly if you are employed and the default is not recent. Our panel includes lenders who assess capacity rather than score alone.

How long should I wait after being declined?

There is no fixed rule, but allowing recent enquiries to age by several months generally helps. More important is changing something — approaching the same lender profile again usually produces the same result.

Will a broker enquiry show on my file?

No. Discussing your situation with us records nothing. An enquiry only appears if you ask us to lodge a formal application.

Is a secured loan easier to get with bad credit?

Generally yes. The lender holds an asset, which reduces their risk, so policy is often more flexible and the rate is lower.