We answer some of the most common questions about getting a loan with bad credit!

If your question is not answered below please feel welcome to send us an email – applications@hoolu.com.au


Or you can call us on 1300 0 HOOLU or 1300 046 658

Can I apply for a loan if I receive Centrelink payments?

Absolutely! If you are not working and just receiving Centrelink payments you are welcome to apply. However, our lending panel aren’t able to accept loan applications from individuals who receive Newstart, Abstudy, Austudy and Youth Allowance payments, sorry.

Can I apply for a loan if I’m not working?

You are able to apply if you are not working but are receiving Centrelink income (excluding those who receive Newstart, Abstudy, Austudy and Youth Allowance payments). If you are receiving no income at all unfortunately we won’t be able to assist for both company policy and legislative reasons.

Can I apply for a loan if I have bad credit?

Of course! We welcome applications from people with bad credit. It doesn’t matter whether you have had recent credit problems or a history of bad credit over a period of time.


We have over 35 lenders on our panel and a lot of them specialise in bad credit car loans, vehicle loans (caravans, RV’s, boats, motorcycles) and business loans. So there are plenty of options to compare for you. Plus, we always do everything we can to get your loan application approved with the best interest rate for you.

Can I apply for a loan if I have a low credit score?

It is a common misconception that having a low credit score will stop you from getting a loan. While it goes make getting a loan more difficult, having a bad credit rating doesn’t mean you can’t get a loan application approved.


We have options for good credit, bad credit, and everyone in between. We always do our best to get you a loan approved somewhere, too!

Can I apply for a loan if I have defaults?

Yes! Though most lenders do generally like an explanation about what happened and why you have the default/s. If the defaults are under a payment arrangement that can help support your application, but it’s not always necessary. It mostly depends what the default/s are for and how recently it happened. If you’re still unsure please call us to discuss.

Can I apply for a loan if I’m casual?

Yes! Though most lenders like to see a minimum of 3 months employment regardless of whether you are casual, part-time, full-time or self-employed. They are mostly concerned whether you are able to make your loan repayments on time and reliably (which is a good practice for maintaining and improving your credit score).

Do you help single parents?

Yes! We are always happy to help with loans for single parents. We also do joint loans between de-facto and married couples.

How does Hoolu work?

We are a finance broker so we have access to over 35 lenders. We specialise in helping people with good credit, bad credit and everything in between.


When you first apply for a loan we check your credit file to get a better understanding of your situation. We then submit your application accordingly to a suitable lender.


We are careful with the choice of where we submit applications to, because we know what certain lenders do and don’t prefer, which increases your chances of success. We are also cautious not to make too many inquiries on your credit file to avoid the negative effects this can have.


The best part is that we save you having to shop around and submit multiple applications. This saves you time and makes sure you get the best loan for you.

Do you help people with poor payment history?

Yes, we can usually assist. Though if you are dishonouring on current commitments regularly it can be harder to get approved.  Lenders generally want to see that you are meeting your  repayment current commitments on time for 3-6 months. This is also the way to repair your credit score and build your credit history.

Why do you need bank statements?

Lenders will usually request to review the last 3 months of your banking conduct. They are looking for any undisclosed debts together with getting an overall view of your financial situation. They are also looking to see your pay being deposited regularly to confirm your ability to service loan repayments. If you don’t have a lot of savings, don’t worry, they aren’t really looking at that.


If you are dishonouring on your current direct debits they may be reluctant to accept an application. But this is not always the case and it depends on the circumstances.

Can I apply for a loan if I’m currently bankrupt or have a current Part IV debt agreement?

There are a few lenders who will still review your application but it is on a case-by-case basis. It also depends how long you’ve been in the current agreements and the payment history (if it’s a Part IV). You also need to be working. If the Bankruptcy or Part IV is discharged we have a lot of lenders who will still look at your application, so if you’re unsure don’t hesitate to give us a call.

Can I apply for a loan if I’ve had bad credit or bankruptcy in the past?

Yes of course! The bankruptcy usually needs to be discharged but please feel free to call if you are unsure and we will do our best to help.

What is a balloon payment?

It is otherwise known as a residual payment. This is when you choose to add a lump sum to the end of your loan to decrease your repayments and makes the loan more affordable. At the end of your loan term the balloon (residual) becomes due and needs to be paid. You can sometimes refinance it, trade or sell the car to pay out the balloon amount. Or if you’ve got savings you can pay it out that way.


Remember, balloon or residual payments are completely optional. It’s up to you if you want to include one as part of your loan. Though some lenders don’t offer the option for a balloon payment. If they do give you the option, they will have their own guidelines in relation to the size of the residual payment as part of the loan terms.

Will I need a deposit?

Usually a deposit isn’t needed. Sometimes a lender will ask for a deposit if it is your first loan or if you have had severe credit issues, but 9 times out of 10 it is not required.


Another situation where a deposit may be required is if you’ve been approved for an amount and the car you want is more expensive than your approval amount. But is up to the the lender in question – they all have different policies.

Do you do credit checks?

We do a ‘soft touch’ check which allows us to view your credit file without leaving a formal credit enquiry. The lenders we submit your application to will normally do a credit check.

Do I need to know what car I want before I can apply?

Wanting to buy a car and then applying for a loan is the first step to getting car finance. We can then arrange what is called a ‘pre-approval’ which means you will know how much you can spend before you start looking for a car. We can also help you find the vehicle you want – we have a network of approved and trusted dealerships we work with that can get any car on the market.

What is a pre-approval?

A pre-approval can be given when you submit an application for an amount without knowing what car you want to buy. You let us know how much you think you want to spend and we will do our best to get this approved for you. Once you know how much you’re ‘pre-approved’ for you can start looking for a car. It’s a great way to know what your budget is and saves time when you find a car you want to buy.

Can I apply for a loan if I have a short term ‘pay day’ loan?

Yes, you can, though most lenders require you to have less than 2 current short term loans. They are mostly interested in whether you can make repayments on any loan they offer you relative to your income and other financial commitments.

What is the interest rate?

Apply for a loan through a non-bank lender doesn’t necessarily mean you will be given a higher interest rate than a normal bank loan. In fact you may even get a better deal on your loan because you have more options and choice available to you.


All lenders offer varying interest rates to applicants. They take into account numerous credit criteria together with your unique financial situation. The rates can start as low as 4.5% and range up to 29.99%.


Because we are a finance broker we don’t know what your interest rate is until you are approved. Though you are sure to get the best option/s for you, as we have access to over 35 lenders who specialise in different types of loans, which saves you having to shop around.


If you would like to get an estimate of your loan repayments, you can also try out our loan calculator by clicking here.

What are my repayments?

Your loan repayment amounts depend on your overall application relative to how it meets the borrowing criteria together with your unique financial situation. Once approved we will let you know exactly what your repayments will be before you proceed to make sure you are comfortable with your ability to meet your repayment requirements. If you are not happy with the deal there is zero obligation to proceed.


As a responsible lender we will always ensure our clients have capacity to service the loan. We are also happy to help explain the terms and conditions of your loan approval so you understand your commitments. We do everything we can to make sure you are completely satisfied with your borrowing experience before, during and after the application process.

Can I pay my loan out quicker?

Yes, you can pay out the loan as quickly as you like. Some lenders charge an early termination fee (Generally it is capped at $750 which reduces over the life of the loan). But some lenders don’t charge an early termination fee at all and require no extra charges for extra payments. However, business loans are sometimes different. If you would like to clarify please call to discuss your individual circumstances.

What happens if I’m declined?

Sadly we can’t always help everyone, but we will do our best to try to help. If you are declined we will notify you via email of the outcome with any feedback from the lenders about your application. This information is very useful for you to have so you know how to go about improving your credit rating and maintain a good credit history going forward. Then hopefully you can try again in the near future and get your loan approved.

Where are you located?

Our head office is located on the Gold Coast in Queensland, but we service all of Australia with our 100% online loan application process.

Most of our Customers are from Victoria, New South Wales, and South Australia, but we have customers from across the country.

Your best borrowing experience ever – we promise!


Let’s chat about your new loan! Fill out the form


Or call us any time on 1300 0 HOOLU or 1300 046 658 ☏