Major banks tend to apply rigid credit-scoring rules. Non-conforming (specialist) lenders take a broader view — they often assess the story behind a default rather than rejecting an application outright. This is general information about how that market typically works, not advice about your situation.
What counts as 'bad credit'?
Lenders generally look at things like defaults listed on your credit file, missed or late repayments, court judgments, and how recently any of these occurred.
A single small, paid, and aged default is usually viewed very differently to multiple recent defaults. Time since the event and whether it's been repaid both matter.
How specialist lenders typically assess it
Many non-conforming lenders price for risk rather than declining — meaning a higher rate may apply, often with a path to refinance to a sharper rate once your history improves.
They commonly want to understand the reason behind a credit event (illness, business downturn, divorce) and evidence that your situation has stabilised.
Things that generally help
A larger deposit, a clean recent repayment history, stable income, and a clear explanation of past events all tend to strengthen how a scenario is viewed.
Run the free Scenario Match tool to see which lenders on our panel typically operate in scenarios like yours — with an indicative likelihood and rate range.
See which lenders match your scenario
Answer five quick questions — no name or contact details required — for an indicative likelihood and the specialist lenders that typically work with situations like yours.
Run Scenario Match →This guide provides general information only and does not constitute financial or credit advice. gosearch.loans does not hold an Australian Credit Licence and does not assess applications. Always confirm details directly with the lender or a licensed credit professional.