Credit score is low, how can I get a loan?

Question: Credit score is low, how can I get a loan?

Answer: A low credit score can make a loan application more complex, but it is only one part of how lenders assess risk. In Australia, lenders usually look at the full picture: your income, expenses, employment history, existing debts, deposit, conduct on bank statements and the reason your credit score is low.

The most useful next step is usually to understand what is sitting on your credit file and how recent it is. A missed payment from years ago may be viewed differently from current arrears, defaults or unpaid debts. Some lenders are more flexible than others, but they will still need to see that the loan is affordable and that the application makes sense.

Before applying, it can help to gather payslips, bank statements, details of any debts, savings history and an explanation for any credit issues. A broker can then compare which lenders may be willing to assess the scenario before an application is lodged, which may reduce wasted enquiries.

This is general information only. Lender policy, rates and eligibility can change, and approval depends on your full circumstances. For guidance tailored to your situation, speak with TwoFold Lending on 1300 100 019 or book an appointment.

Important: This answer is general information only and does not consider your objectives, financial situation or needs.