Many Australians who have struggled with their credit history often find it challenging to get approved for traditional personal loans. When banks say no, some borrowers explore Medium Amount Credit Contracts, also known as MACC loans. These loans are regulated under Australian credit laws and are designed for people who need between $2,001 and $5,000 for important expenses.
Why MACC Loans Exist
A MACC loan fills the gap between small short-term loans and larger personal loans. They come with structured repayment terms—often between 3 and 24 months, depending on the lender and your financial situation. Because these loans must follow the National Consumer Credit Protection Act, lenders are required to review your financial position, check that you can manage the repayments, and explain all fees clearly.
This regulatory framework is helpful for people searching for a bad credit loan Australia because it means products must be responsibly assessed before approval.
Who These Loans Are Designed For
MACC loans are often considered by people who may have:
A history of missed payments
Previous defaults
A low credit score
Limited access to mainstream lenders
Even with these challenges, some lenders may still assess applications based on your current income, spending habits, and overall ability to repay the loan. This can give borrowers more options when unexpected expenses arise, such as car repairs, medical needs, or urgent bills.
Secured and Unsecured MACC Loan Options
Depending on the lender, MACC loans may be offered as:
Secured loans:
These require you to use an asset—often a car—as security. This may affect the conditions of the loan and what happens if you miss repayments.
Unsecured loans:
These do not require an asset, but they can come with different cost structures because the lender takes on more risk.
Both types must still meet responsible lending requirements, which means the lender must check that the loan is suitable for your situation.
How Applications Are Assessed
When you apply for any MACC product or a bad credit loan Australia, lenders usually review:
Your income and employment
Your regular expenses and financial commitments
Bank statements
Identification and residency status
Whether repayments fit comfortably within your budget
This helps lenders decide if the loan is appropriate and whether it may create hardship.
What to Look For When Comparing MACC Lenders
Each lender has different features, so it helps to compare:
Loan limits and repayment terms
Interest rates and fees
How long the approval process takes
Whether repayments can be made weekly, fortnightly, or monthly
The level of transparency in loan documents
Customer support and accessibility
Borrowers often choose lenders that provide clear information, simple application steps, and flexible repayment options.
Simple Ways to Improve Your Chances of Approval
Even with a low credit score, you may strengthen your application by:
Reviewing your credit report for errors
Paying down smaller debts where possible
Showing consistent income in your bank statements
Preparing payslips and ID documents early
Avoiding new debt before applying
These steps help demonstrate stability, which some lenders consider when reviewing applications.
Read Full Blog: Top 10 MACC Loan Providers in Australia for Bad Credit Borrowers
