Australia still provides loans for bad credit holders. However, it may charge a higher interest rate compared to loans provided to people with a good credit rating. If you are trying to scour out for a personal loan, a poor credit rating might make you frustrated. But, how do you know if you have a bad credit history? Below are the details to find out exactly where you stand in the credit-active community.
Knowing If You Have Bad Credit History
Applying for a personal loan bad credit can be an easy process. But you have to know where you actually stand in the credit rating scheme. Defining “bad credit” varies from each lending company or financial institution.
Usually, defaults, bankruptcy, and part IX debt agreements are red flags to lending companies and it will automatically place you in the “bad credit” category. If you do not have all of these, then you are in the safe zone.
However, credit files in Australia also provide significant information which may look bad to prospective lending institutions. These data include the following:
- Exceeding your credit card limit
- Late repayments of loans
- Late payment of bills
- Multiple application for credit
Multiple credit applications done in a short amount of time can make you look bad to prospective lenders. The degree of how bad your credit rating can appear to lending institutions varies for each company. Thus, it is best to check out each lending company and compare the criteria for applications. You can determine which lending institution fits your criteria and makes you eligible by comparing your options.
In Conclusion
If you have poor credit, this should not stop you from getting a loan. It doesn’t mean you don’t have the capability or the will to pay your debts. Compare various options and find out what’s best for your needs and situation.