What does ‘impaired credit’ mean?

What does ‘impaired credit’ mean?

Impaired credit or adverse credit is when you have a history of not keeping up with payments on your loans or credit cards. You may have continually missed payment, or be a discharged bankrupt and are rebuilding your credit score after a series of severe defaults.

Your credit rating might be adversely impacted if you continually make late repayments or have defaulted on small loan amounts (such as your mobile phone bill). Your credit rating may then be severely impaired if you default on larger loans, which will impact your ability to get credit or a loan in the future.

If you have impaired credit or adverse credit, you can sometimes be viewed as a high risk by traditional lenders. However, it may still be possible to get a home loan if you have a bad credit history from a specialist lender when they look at your entire situation, and not just your credit score.

For more information, on commonly asked questions, visit our Bad Credit FAQ. We also have some top tips for getting a home loan with impaired credit.

If you would like to know more, speak to a Lending Specialist on 137 377, Monday to Friday 8:00am - 6:00pm (AEST/AEDT).

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