How to get a loan from NAB with bad credit

Having a bad credit score doesn’t automatically mean “no” from a major bank like NAB (National Australia Bank) — it just means you’ll need to prove stability, responsibility, and readiness.

While NAB doesn’t specialise in bad-credit loans, it does offer options that can work if you prepare carefully and apply the right way.

Here’s a full guide to help you understand your chances, strengthen your application, and improve your path to approval.

Why Bad Credit Makes Borrowing Hard at NAB

Banks like NAB assess risk before they lend. Your credit report tells them how you’ve handled money in the past — missed repayments, defaults, or excessive debts make you look risky.

With bad credit, lenders may:

• Offer higher interest rates
• Require more documentation
• Ask for a secured loan or guarantor
• Or, in some cases, decline the application outright

However, NAB also values income stability, employment, and banking history. If you can show consistent income and responsible financial behaviour, you can still qualify — even with a low score.

Assess Your Credit Report & Fix What You Can

Before you apply, get a free copy of your credit report from Equifax, Illion, or Experian. Look for:

• Errors or outdated defaults you can dispute
• Paid debts still showing as active
• Old credit cards you can close

Improving your report, even slightly, can increase your approval odds. A 50-point bump in score may move you from “high risk” to “moderate risk,” unlocking much better terms.

💡 Tip: If you’ve had issues in the past but are now making regular payments (like rent or utility bills), include proof — this demonstrates renewed reliability.

Consider Using a Guarantor or Secured Option

If your credit score is low, applying for a secured personal loan gives NAB extra confidence. That means backing your loan with an asset like:

• A car
• Term deposit
• Or another valuable item

The asset acts as protection for the bank, allowing them to offer a lower rate.

Another option is a guarantor loan — where a trusted person (with strong credit) guarantees repayment if you can’t. It’s a powerful tool, but it also creates shared responsibility — so use it wisely.

Explore NAB’s Customer & Relationship Advantages

If you’re already a NAB customer, you’re ahead. The bank values long-term relationships. Having a transaction account, savings account, or previous NAB product works in your favour.

You can:

• Apply directly through NAB Internet Banking — some customers receive pre-approved offers.
• Ask about relationship pricing, where loyal clients get better rates or higher approval chances.
• Use your income deposits from a NAB account as proof of stability.

Familiar history equals trust — and trust can balance out a poor credit record.

Prepare a Strong Application

When applying with bad credit, precision matters. Lenders want to see you’ve turned things around. Strengthen your application by:

• Providing full documentation (ID, payslips, bank statements) upfront
• Showing stable employment — ideally 6+ months in your current role
• Demonstrating affordability — your income comfortably covers repayments
• Avoiding large, recent spending spikes in your statements

Remember: a clean, organised application tells NAB you’re serious about responsible borrowing.

Alternative Lenders to Consider if NAB Says No

If NAB declines, don’t panic — there are alternatives:

• Online lenders like MoneyMe, Harmoney, or SocietyOne consider applicants with imperfect credit.
• Credit unions sometimes offer flexible terms for local members.
• Secured car or asset loans often have easier approval requirements.

Start with NAB — but keep options ready if you need a fallback.

Tips to Improve Your Credit Before Reapplying

Bad credit isn’t permanent. You can repair it faster than you think:

• ✅ Pay every bill on time — even small ones.
• ✅ Set up direct debits to avoid missed payments.
• ✅ Keep credit card balances below 30% of your limit.
• ✅ Don’t apply for multiple loans at once — it signals desperation.

In 6–12 months of consistent behaviour, your score can recover significantly — and new opportunities will open.

What to Expect: Interest, Fees, and Conditions

If approved, NAB’s personal-loan rates range roughly between 7.00% and 21.00% p.a., depending on your credit and whether the loan is secured or unsecured.

Typical fees include:

• Establishment fee: AUD 150–250
• Monthly fee: Around AUD 10–15
• Late payment fee: About AUD 20

Even if your rate is higher now, you can refinance later once your credit improves to bring it down.

FAQ — NAB & Bad Credit Loans

💰 Can I get a NAB personal loan with bad credit?
Yes — but approval depends on income, stability, and security. A guarantor or asset can improve your odds.

📉 What’s the minimum credit score NAB accepts?
NAB doesn’t publish a minimum, but most approvals occur with scores above 600. Below that, expect closer scrutiny.

🔒 Can I apply for a secured loan instead?
Yes. Secured loans are often easier to get approved when your credit history isn’t perfect.

💳 Will NAB check my credit file?
Yes. A standard credit check is part of every application.

☎️ How can I contact NAB for personal loans?
You can apply online at nab.com.au/personal-loans or call 13 22 65 (Mon–Fri, 8 a.m.–7 p.m. AEST).