Environmental concerns Australia’s biggest problem, pushing lenders to go green

Environmental concerns Australia’s biggest problem, pushing lenders to go green

In Roy Morgan’s Most Important Issues poll it had been found that Australians are becoming increasingly worried about the state of the environment.

According to this recent research, economic issues are now less worrying to our nation than environmental issues, for the first time since the devastating Queensland floods in February 2011.

Climate change a major factor

In addition to the research, more than 400,000 Australians have signed a petition urging the government to declare a climate emergency, reflecting serious concerns about the impacts of climate change on our “megadiverse” nation.

Source: Roy Morgan Australia

“This is the first time for over eight years Australians have thought so prominently about the environment,” said Roy Morgan CEO, Michele Levine.

“Concerns about Global warming and Climate change are the most prominent issue mentioned but there is also significant concern about the Drought and water conservation and management in the parched Murray-Darling Basin that are widely referred to as the biggest problems facing Australia.”

In the face of such concerns, lenders in the personal finance industry are turning green.

Lenders go green in support of eco-conscious spending

Whilst financial products themselves may not have a large carbon footprint, the capital they lend can end up funding projects that do.

As such, some proactive lenders are now providing green personal loans in an effort to reduce carbon emissions and encourage conscious investment in sustainable technologies.

So, if you’re looking to update your home with solar panels, energy efficient hot water systems or other clean energy products, you may want to take a closer look at the personal loans below.

Lender Product Name Advertised Rate Comparison Rate Minimum Amount Upfront Fee
Police bank Green Loan 6.49% 6.63% $1,000 $98
Community First Credit Union Green Personal Loan 5.99% 6.26% $1,000 $195
Bendigo Bank Secured Green Personal Loan 6.79% 7.21% $2,000 $150
Ratesetter Green Loan 6.81% 8.92% $2,000 from $300
Southern Cross Credit Union Green Personal Loan 7.29% 7.47% $10,000 $125
Bank first Green Personal Loan 9.00% 10.04% $10,000 $150
Bendigo Bank Unsecured Green Personal Loan 11.79% 12.84% $2,000 $150

Data accurate as at 21st November 2019. Be sure to check the PDS and any additional fees and charges with the lender before you sign on the dotted line.

woman holding soil and plant

Lenders refusing to invest in fossil fuels

If you’re not in the market for a personal loan, but you still want to ensure you’re banking sustainably, there are many lenders that refuse to provide finance to the fossil fuel industry.

As a large portion of carbon emissions are as a result of burning fossil fuels, supporting these financial institutions who have never invested in fossil fuel projects, could be a good place to start.

  • Adelaide Bank
  • Australian Defence Credit Union
  • Auswide Bank
  • Bananacoast Community Credit Union
  • Bank Australia
  • Bank First
  • Bank of us (formerly B&E)
  • BankVic
  • BDCU Alliance Bank
  • Bendigo Bank
  • Beyond Bank
  • Cape Credit Union
  • Community First Credit Union
  • Credit Union SA
  • CUA (Credit Union Australia)
  • Defence Bank
  • Delphi Bank
  • ECU
  • Firefighters Mutual Bank (formerly Fire Board (NSW) Employees Credit Union)
  • First Choice Credit Union
  • G&C Mutual Bank
  • Gateway Credit Union
  • Greater Bank
  • Goulburn Murray Credit Union
  • Health Professionals Bank
  • Heritage Bank
  • Horizon Credit Union
  • Hume Bank
  • Hunter United
  • IMB
  • Intech Credit Union
  • Laboratories Credit Union (LCU)
  • Maitland Mutual Building Society
  • Northern Beaches Credit Union
  • Maleny Credit Union (MCU)
  • Maritime, Mining & Power Credit Union
  • ME Bank
  • MyState
  • Newcastle Permanent
  • P&N Bank
  • People's Choice Credit Union
  • Police Bank
  • Police Credit Union
  • Qudos Bank
  • QBANK (Formerly Queensland Police Credit Union)
  • QT Mutual Bank
  • Queenslanders Credit Union
  • Rabobank
  • Regional Australia Bank
  • Rural Bank
  • Select Mutual Banking
  • Southern Cross Credit Union
  • South West Slopes Credit Union
  • Summerland Credit Union
  • Teachers Mutual Bank
  • Transport Mutual Credit Union
  • UniBank (formerly unicredit)

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Learn more about personal loans

Where can I get a personal loan?

The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:

There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.

Will comprehensive credit reporting change my credit score?

Comprehensive credit reporting may change your credit score, either positively or negatively, depending on an individual's situation.

Under comprehensive credit reporting, credit providers will share more information, both positive and negative, about how you and other Australians manage credit products. That means credit reporting bureaus will be able to make a more thorough assessment of everyone’s credit behaviour. That will lead to higher scores for some consumers and lower scores for others.

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.

How do I know if I've got a bad credit history?

You can find out what your credit history looks like by accessing what's known as your credit rating or credit score. You're also able to check your credit report for free once per year.

What causes bad credit ratings/scores?

Failing to repay loans and bills will damage your credit score. So will falling behind on your repayments. Your credit score will also suffer if you apply for credit too often or have credit applications rejected.

What is a credit rating/score?

Your credit rating or credit score is a number that summarises how credit-worthy you are based on your credit history.

The lower your score, the more likely you are to be denied a loan or forced to pay a higher interest rate.

Are there emergency loans with no credit checks?

While many personal loans require a credit check as part of the application process, some personal loans and payday loans have no credit checks, which may appeal to some borrowers with a bad credit score.

Keep in mind that even if a loan is available with no credit check, the lender will likely want to confirm that you can afford the repayments on your current income.

How can I improve my credit rating/score?

Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising loan applications, clearing up defaults and paying bills on time.

Another tip is to get the one free credit report you’re entitled to each year – that way, you’ll be able to identify and fix any errors.

If you want to fix an error, the first thing you should do is speak with the credit reporting body, which may take care of the problem or contact credit providers on your behalf.

The next step would be to contact your credit provider. If that doesn’t work, you can refer the matter to the credit provider’s independent dispute resolution scheme, which would be the Australian Financial Complaints Authority (AFCA).

AFCA provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

If that doesn’t work, your final options are to contact the Privacy Commissioner and then the Office of the Information Commissioner.

Can students with no credit history get loans?

It is possible for students with no available history of borrowing or managing money to get a personal loan, though it may be more difficult as well as expensive than for borrowers with a good credit history.

Having no credit history means having no credit score. While many lenders may consider having no credit score to be better than having a bad credit score, they may still consider it riskier to lend to an unknown borrower and may charge higher interest rates or fees than to borrowers with good credit scores.

How long will I have bad credit?

Most negative events that appear on a person’s credit file will stay in their credit history for up to seven years.

You may be able to improve your credit score by correcting errors in your credit report, clearing outstanding debts, and maintaining good financial habits over time.

Does refinancing a personal loan hurt your credit score?

Personal loan refinancing means taking out a new loan with more desirable terms in order to access a more competitive interest rate, longer loan term, better features, or even to consolidate debts.

In some situations, refinancing a personal loan can improve your credit score, while in others, it may have a negative impact. If you refinance multiple loans by consolidating these into one loan, it could improve your credit score as you’ll have only one outstanding debt liability. Your credit may also improve if you consistently pay the instalments on time.

However, applying to refinance with multiple lenders could negatively affect your credit if your applications are rejected. Also, if you delay or default the repayment, your credit score reduces.

Do $4000 loans have no credit checks?

Many medium amount loans for $4000 have no credit checks and are instead assessed based on your current ability to repay the loan, rather than by looking at your credit history. While these loans can appear attractive to bad credit borrowers, it’s important to remember that they often have high fees and can be costlier than other options.

Personal loans for $4000 are more likely to have longer loan terms and will require a credit check as part of the application process. Bad credit borrowers may see their $4000 loan applications declined or have to pay higher interest rates than good credit borrowers.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.