Credit Smart Solutions

Can You Buy a House with Bad Credit in Australia? Buying a home is a dream for many Australians — but if you have a bad credit score, it might feel out of reach. The good news? You might still qualify for a home loan, even in 2025. Here’s what you need to know. What Is Considered Bad Credit? In Australia, a credit score below 600 is often considered “subprime” by lenders. Missed payments, defaults, bankruptcies, or too many credit applications can all drag your score down. Can You Still Get a Loan? Yes, but it’s not easy. Some lenders, especially non-conforming or specialist lenders, offer “bad credit home loans” — often with stricter terms and higher interest. What Lenders Look For Stable employment and income Larger deposit (at least 20% preferred) Explanation of your credit history (e.g. illness, divorce) Improved recent repayment behavior Tips to Increase Your Chances Pay off existing debts and clean up your credit file Save a higher deposit — it sh...

Minimum Credit Score for Home Loans in Australia Applying for a home loan in Australia? Your credit score could make or break your chances. In 2025, lenders are paying even more attention to your financial profile. Let’s explore what credit score you need — and how to boost it. What Is a Credit Score? In Australia, credit scores range from 0 to 1,200 depending on the credit reporting agency (Equifax, Experian, illion). A higher score means lower risk for lenders. Minimum Credit Score for Different Lenders Lender Type Minimum Score Notes Major Banks (e.g., CBA, NAB) 650+ Prefer stable income & history Online Lenders 500–600 More flexible but higher interest Non-Conforming Lenders Below 500 For poor credit, expect higher fees How to Improve Your Credit Before Applying Pay down existing debts Make bill payments on time Don’t apply for new credit months before applying for the mortg...