What counts as bad credit when applying for a home loan?

Your credit score is a number worked out by a credit reporting bureau, and each bureau uses its own scale (an Equifax score, for example, is between 0 and 1,200). The higher your credit score, the better. A score in the lowest bands of the bureau's scale is generally considered 'below average' or 'poor', and you'll find it harder to get a loan. You can check your credit score for free through Finder.

What is the easiest home loan to get with bad credit?

If you have bad credit the journey to getting a home loan may not be an easy one. However there may be home loan options that you're more likely to be approved for. This will depend on your own individual circumstances and the lender's criteria though. You may be better off speaking to a mortgage broker who can take into account your situation and will have a good knowledge of each lender's policies.

How can I improve my bad credit score?

There are steps you can take to improve your credit score if you're worried about applying for a home loan. The first step is to take a look at your credit file to see what is included and if there are any errors you can dispute. You should also pay off any remaining debts, prioritising the larger debts first and any with defaults. You should then make any remaining repayments on time to build up your credit score over time. Read more on how to improve your credit score.