Mother, Father and daughter reading together on couch Mother, Father and daughter reading together on couch
Mother, Father and daughter reading together on couch

Considering a loan entails more than just committing to a scheduled repayment. Several factors take place before a customer arrives at the application start line. Common assumptions about what the Banks think, and what your profile may or may not qualify for could be a myth.

Let us de-bunk this for you.


Most people under the age of 25 assume they need a loan guarantor to support an application. Although this can apply for mortgages, it’s not common for general asset finance. The market for younger applicants is expanding, with more lenders lowering their age requirements. Chances are if you’re over 18 and in stable employment; you can apply for a loan.

Low Credit Score

Widespread assumption leads us to believe a “lower than average” credit score will be declined. This prompts another question-  “What is deemed a low credit score?”. You can read more about this here. Credit teams base their analysis on a variety of profile points, not just one. A person with strong employment tenure, and a mortgage shouldn’t be overlooked just because they’ve made several credit enquiries in the last 6 months. Some lenders can still assess a profile with a lower credit score if the rest of the profile is strong

Bad Credit Loan Customer Australia

New Job = No

Did you know there are lenders who consider ‘Day 1 Employment?’- That’s right! Some lenders will consider a customer in a new job if documentation can be supplied. Industry continuity can be your friend when applying, but it’s not a be all and end all if you’ve started a new career path.

I have an unpaid bill/default

When an outstanding debt is left for some time, a company can put a “default” on a person’s credit file. This default will show as ‘unpaid’ until the debt is paid in full. These listings can be financial, or for utilities. Much like the low credit score scenario; if the rest of an applicants profile is strong- lenders can work around a default on file. The application pitch needs to be strong, which is often best framed by a broker.

In most cases, speaking with an industry professional will confirm these myths and assumptions. With an ever-evolving economy, we must adapt to what is in front of us; which is what the lenders and banks are doing. You never know who might consider an application- an approval could be just around the corner!

About the Author

Rowdie Lang

Rowdie has been a part of our Team since 2020. He has witnessed firsthand the ongoing evolution of the finance industry as technology continues to change the way customers' access financial services. He has a passion for helping people and relishes the opportunity to work alongside our teams every day as they help our customers financial dreams come true.

Related Blogs

Our Categories

Related Tags

Apply Now