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If you're receiving Centrelink payments and have a poor credit history, you might feel like getting a loan is out of reach. But you’re not alone — and options do exist. The key is understanding how lenders assess risk and what alternatives may be safer and more affordable.
In this article we explore what bad credit really means, how it might affect your eligibility, the types of lenders to be cautious about, and how products like Beforepay can offer an alternative path to financial flexibility.
Bad credit usually refers to a low credit score or a negative credit history due to missed repayments, defaults, bankruptcy, or too many loan applications. It signals to lenders that you may have struggled to manage debt in the past, which makes them more cautious about lending to you.
If you’re on Centrelink, this can create a double barrier: limited income and low creditworthiness. As a result, many traditional lenders might reject applications outright or offer loans with extremely high interest rates.
Read our ways to improve your credit score.
Lenders that claim to offer "bad credit loans" without any checks can often be risky. Some things you might want to look out for are:
If a lender offers to approve you without knowing your financial situation, they may not have your best interests in mind.
You don’t always need to go through a lender that checks your credit history. Some alternatives focus on your transaction behaviour and ability to repay:
At Beforepay, we don’t simply look at your credit score to determine your eligibility.
To ensure we are helping you borrow in a way that is safe and affordable, we have our own custom assessment that looks at your financial circumstances to determine your eligibility to borrow.
Some factors this might include are:
Find out more about eligibility for a Beforepay Pay Advance.
That means you might be eligible regardless of your credit history, provided you meet our other eligibility criteria and requirements.
We also prevent multiple advances, helping you borrow safely by avoiding compound debt and having the flexibility to repay at a pace aligned with your cash flow.
For further support with your finances view our list of financial support and resources.
Disclaimer: Beforepay Group Ltd, ABN: 63 633 925 505. Beforepay allows eligible customers to access their pay and provides budgeting tools. Beforepay does not provide financial products, financial advice or credit products. The views provided in this article include factual information and the personal opinions of relevant Beforepay staff and do not constitute financial advice. Beforepay and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this blog post and do not accept any liability for any loss whatsoever arising from the use of this information. Please read our Terms of Service carefully before deciding whether to use any of our services.