Ways To Solve Your Bad Credit Problem

When you have a bad credit history generally you are not qualified for a loan from banks or traditional lenders. Not many know, but there are bad credit loan alternatives available and they are very accessible. You’ll simply need to demonstrate that you can repay the loan by giving proof of a regular income, whether it comes from your employment or Centrelink.

What bad credit loans are like?

Bad credit loans are similar to standard personal loans, except for their fee and interest rate structure. Bad credit loans are more expensive because the companies run a higher risk of lending to those with bad credit histories. The good news is that these companies give everyone a fair chance to be considered for a loan.

Want to see if you qualify for bad credit loans? Get more information here.

Do I have bad credit?

If you have things such as bankruptcies on your credit file, you can assume that you have bad credit — The degrees of bad credit vary. Another way to see if you have bad credit is to have a look at your credit report and credit score.

Also be mindful of what can cause bad credit and try to avoid it, click here for more tips. Your credit score is also a good indication of your chance of approval. Consider a credit score that ranges between 0 and 1,000. If your credit score is 800-1000, it is excellent. If it’s 0-549, it is weak and below average. The lower your credit score, the more likely it is that you have bad credit.

Be careful with excessive credit applications in a short period of time, as this can cause you to fall into the bad credit category — be informed when it comes to credit card use.

Bad credit loans and the chances of approval

There is no absolute way to guarantee you will get approved for a quick cash loan. Keep these pointers in mind, when your credit history isn’t perfect and you’re considering to get a loan:

  • Check your eligibility — Lenders have set eligibility criteria which the borrower needs to meet. Make sure to visit the lender’s website or call them to learn if you meet their criteria and to discuss your situation. The following criteria are the most common eligibility requirements: an Australian citizen or permanent resident; at least 18 years old; has a regular income through employment or Centrelink benefits.
  • Get a free copy of your credit file — Your credit file is your financial history record, this is what the lender will evaluate to estimate your creditworthiness. Credit reporting agencies in Australia can provide you a copy of your credit file.
  • Compare bad credit loan options — Make sure you compare your options before you apply for a loan to minimise the number of applications you make. This is helpful and a good practice because every application you make shows up on your credit file.

Factors to consider when comparing bad credit loans

Before you resort to this form of borrowing, let’s look at some things to keep in mind when applying for a loan with bad credit.

  • Online application — You can save time with the convenience of applying online. It is also much easier to compare a range of credit providers online which will help you make the best choice. If you are interested in getting a loan go to Cigno Loans and simply fill in their easy application form.
  • Minimal to no credit checks — It is common practice for lenders to do a credit check. It’s a challenge to be approved for a personal loan from most credit providers when you have a bad credit history. You might want to consider a no credit check loan if you have credit problems.
  • Repayment terms — Most lenders will give borrowers different options on how to make their loan repayments. The most common way is through direct debit, which can be set up and broken down to eliminate the time spent making monthly payments. There is also robust security technology in place to increase the borrower’s confidence in the automated process.
  • Fees and interest rates — Although you can expect higher fees and interest rates due to the risk of these type of loan, rest assured that the fees are capped by The Australian Securities and Investments Commission (ASIC).

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Don’t fret, you are not stuck with a bad credit

You should know that having bad credit doesn’t have to be a permanent thing. Late payments, foreclosures, and even bankruptcies will fall off your reports after a certain amount of time. This means that even if you file for bankruptcy, it’s still possible for you to work toward better credit.

The bottom line is it’s still possible to find lenders who will work with you and your bad credit. Just work towards improving your credit score and learn to handle your finances responsibly.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat