Which Lenders Approve Loans with Credit Defaults in 2025 (Australia Guide)

Not all lenders treat a credit default the same way. In 2025, several non-bank and specialist lenders across Australia continue to consider borrowers with paid or unpaid defaults – some even within 12 months of listing.

Below, we break down which lenders can help and what’s required to qualify.

Why This Matters

A single default can make it feel impossible to borrow again. But in practice, many lenders- especially specialist and near-prime lenders – offer flexible policies for borrowers with minor or historical credit issues. Knowing which lender fits your situation can be the difference between a decline and an approval.

Lender Comparison Table – Defaults Accepted (Summary)

Lender How Much They Allow Key Conditions / Notes

MA Money Up to $500 (Prime)
Unlimited (Near Prime Plus & Specialist) Defaults over $3,000 under 12 months → Specialist only.
Over 12 months → Near Prime Plus or Specialist accepted.

ME Bank Must show good repayment conduct Up to 1 missed payment in 6 months. No hardship in last 12 months.

Pepper Up to $500–$3,000; unlimited for older defaults Discharged bankruptcy accepted (from 1 day). Strong repayment conduct required.

WLTH Paid defaults up to $3,000 each / $5,000 total Larger or unpaid defaults declined if within 5 years or with judgments/bankruptcy.

Beyond Bank Clean credit only Declines bankruptcies, arrears, or major defaults.

Macquarie Minor non-financial defaults ≤ $500 Larger or unpaid defaults only by exception (BDM approval).

Firstmac Only Telco/Utility defaults ≤ $1,000 (paid) No financial defaults accepted. Written explanation required.

Bluestone From $500 (Prime) to Unlimited (Specialist Plus) Accepts discharged bankruptcy (from 1 day). Debt consolidation allowed.

Brighten Up to $500 (Prime), $1,000 (Near Prime), larger if 24+ months old Paid or unpaid defaults accepted. Max 1 month arrears in last 6 months.

Lender	How Much They Allow	Key Conditions / Notes
MA Money	Up to $500 (Prime) Unlimited (Near Prime Plus & Specialist)	Defaults over $3,000 under 12 months → Specialist only. Over 12 months → Near Prime Plus or Specialist accepted.
ME Bank	Must show good repayment conduct	Up to 1 missed payment in 6 months. No hardship in last 12 months.
Pepper	Up to $500–$3,000; unlimited for older defaults	Discharged bankruptcy accepted (from 1 day). Strong repayment conduct required.
WLTH	Paid defaults up to $3,000 each / $5,000 total	Larger or unpaid defaults declined if within 5 years or with judgments/bankruptcy.
Beyond Bank	Clean credit only	Declines bankruptcies, arrears, or major defaults.
Macquarie	Minor non-financial defaults ≤ $500	Larger or unpaid defaults only by exception (BDM approval).
Firstmac	Only Telco/Utility defaults ≤ $1,000 (paid)	No financial defaults accepted. Written explanation required.
Bluestone	From $500 (Prime) to Unlimited (Specialist Plus)	Accepts discharged bankruptcy (from 1 day). Debt consolidation allowed.
Brighten	Up to $500 (Prime), $1,000 (Near Prime), larger if 24+ months old	Paid or unpaid defaults accepted. Max 1 month arrears in last 6 months.

Key Lender Policy Highlights

MA Money

Prime: Paid defaults up to $500 accepted.
Near Prime / Specialist: Unlimited defaults accepted (paid or unpaid).
Defaults > $3,000 under 12 months → Specialist only.
Defaults > 12 months → Accepted under Near Prime Plus or Specialist tiers.

ME Bank

No hardship in past 12 months.
1 missed payment max in 6 months (home/personal loans).
Clean repayment history required on active accounts.

Pepper Money

Accepts unpaid defaults (depending on tier).
Discharged bankruptcy accepted from 1 day.
Up to 3 months of non-mortgage arrears allowed on Specialist tiers.

WLTH

Small paid defaults up to $3,000 per item / $5,000 total accepted.
Declines unpaid defaults, judgments, or bankruptcies under 5 years.

Beyond Bank

Requires clean credit only.
Declines applicants with arrears, bankruptcies, or written-off debts.

Macquarie Bank

Accepts paid non-financial defaults ≤ $500 with explanation.
Defaults over $500 → BDM exception required.
Bankruptcies and judgments not accepted.

Bluestone

Prime: Paid defaults ≤ $500.
Specialist Plus: Accepts all defaults and discharged bankruptcies.
Debt consolidation available (non-Prime tiers).

Brighten Home Loans

Prime: Paid defaults ≤ $500.
Near Prime: Unlimited defaults ≤ $1,000 accepted.
Paid defaults > $1,000 accepted if over 24 months old.

Common Requirements Across Lenders

Written explanation for each credit event.
Evidence of payment for paid defaults.
Good recent repayment conduct (no current arrears).
Discharged bankruptcy accepted by some lenders (e.g. Pepper, Bluestone).

Key Takeaways

Specialist and non-bank lenders like Pepper, Bluestone, Brighten, and MA Money are the most flexible with defaults.
Mainstream banks such as Beyond Bank and Macquarie remain conservative.
Approval depends on credit conduct, timing, and explanation.
Using a qualified mortgage broker helps match the right lender and protect your credit score.

FAQs

Can I get a loan with an unpaid default?
Yes, some specialist lenders (e.g. Pepper, Bluestone, MA Money) allow unpaid defaults depending on age and product tier.

Does the size of the default matter?
Yes. Defaults under $500–$1,000 are widely accepted, while larger defaults often require 12–24 months since listing.

Will bankruptcy stop me from getting a loan?
Some lenders accept discharged bankruptcy after as little as one day (e.g. Bluestone, Pepper), while most banks require at least 5 years.

Next Steps

Credit issues don’t have to end your borrowing journey. With the right lender match and strong repayment evidence, you can still get approved for finance in 2025. If you’re unsure which category fits your profile, contact a Broker360 specialist for a tailored lending strategy.

Disclaimer

The information in this article is general in nature and does not constitute financial advice. Please consider your personal circumstances and seek professional guidance before making financial decisions.