Determine What Your Chances Are To Get A Loan

Say you need cash at hand because you are going through a financial emergency. Say you are planning to get a loan but have a bad credit. We know that trying to acquire a loan with bad credit can be a challenge, especially when it shows on your credit file. There are different loan options you can still consider. This is where bad credit loans can be applied.

Can I be approved of bad credit loans?

There is no sure way to get approved. Although there are a few pointers you can use for a better chance at bad credit loans.

You can check where you stand by examining your credit score. The higher the score is, the lesser the risk of defaulting. Your credit score can be checked in your credit report for free by using the national credit reporting bodies (CRBs) / credit bureaus listed on the Australian government website. Information such as loans acquired and applied for, as well as personal information (name, address, etc.) are also detailed in the credit report. *Note: your credit score differs depending on the credit bureau.

Bankruptcy, Part IX debt agreements, and defaults are indicators that will place you in the bad credit category. Lenders can also look at late loan repayments, late bill payments, exceeding credit card limits, and multiple loan applications as warning signs that you have bad credit. How bad your credit depends on the lender so make sure to make some enquiries or call their hotline to find out.

If you have applied for a loan before, you are well aware that multiple applications at once is frowned upon. Lenders view it as a red flag and might cause refusal to accredit future access to funds. If this is the case, wait for a while before making another application.

Use a loan calculator to ensure that you’re not applying for a loan that you can’t afford. Most lenders have their own calculator on their websites, set the loan amount and term to have an idea of how much you are going to repay.

Find the right lender for your bad credit loan

Nowadays, there are many specialist lenders to choose from. You may not know where to look first, but it’s very important to do your research and find the right one that suits your financial situation. Here are the following things to consider:

  • Do your research — Make sure your specialist lender is dependable and have a good reputation because they will access your bank account details, among other personal information. Visit the lender’s website to learn about the terms and policies. Do not hesitate to make enquiries and ask about details you deem important.
  • Rates and fees — For faster access to funds and special features from non-traditional lenders, expect to have higher interest rates and fees that come with bad credit loans. Lenders can charge up to 24% of the principal loan amount as monthly fee for a loan less than $2,000, as monitored by The Australian Securities and Investments Commission (ASIC).
  • Turnaround time — Assuming you need the cash urgently, it is better to look for a lender that can make fast decision and credit the the funds directly to your account within 1 to 24 hours. Cigno Loans offers products that won’t make you wait for days or weeks. Check it’s website to learn about your options.
  • Loan extensions — This may include extra fees, but some specialist lenders can extend your loan term up to 90 days. Make sure to enquire on details in the event of a default. Ask about hidden and extra fees you may need to pay in your loan terms. Try to avoid any extensions if you want to pay off your loan quickly.

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Although lenders can tailor-made it’s services to help you, it is wise to only get a loan when you really need them. If you already made a list of possible lenders to choose from, make sure to call them up and make enquiries to assess the right one for you. Remember to apply for a bad credit loan only when you are positive that you will be approved as every application will show up in your credit file.

Read the terms and conditions thoroughly to know the commitment you will lock yourself into. It is also advisable to work towards making your credit score better for future loans.

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 –

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