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Having a bad credit history can make applying for finance more difficult. However, there are a number of lenders on the market who make exceptions for, or cater loans specifically towards borrowers with bad credit history. As long as applicants can show proof of a regular income and an ability to manage repayments, they may still qualify for finance.
Prospective applicants should be aware that having a bad credit history usually means expecting to pay more for finance than individuals with a good credit history. Bad credit history borrowers may also be offered shorter loan terms, and therefore higher repayments than good credit borrowers. This is because they pose more of a risk to lenders.
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
Do you really need a loan today?*
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
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Swoosh Finance offer fast, reliable, and hassle-free secured loans up to $4,584 for when you are in need of money.
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Get access to a car loan from $2,000 to $100,000 on terms of 3, 5 or 7 years. Rates are tailored to your loan term and securing the loan is optional.
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An unsecured personal loan up to $50,000. You'll receive a tailored interest rate between 6.99% p.a. and 24.79% p.a. based on your risk profile.
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An unsecured business loan with online application and no upfront or early repayment fees.
Eligibility criteria differs between lenders. As a general rule, to qualify for any sort of finance in Australia loan applicants must be:
While lenders generally prefer applicants with good credit and in full-time employment, applicants can still be eligible if they:
Before clicking "Go to Site", find out more about various loan options.
For potential loan customers who have bad credit, they can consider applying for a $3,000 bad credit loan. Lenders who offer these loans may still look at an applicant's credit history, but focus instead on their current financial standing and their ability to repay the loan. These loans tend to attract higher than usual interest rates and fees. These fees are capped at a $400 establishment fee and an APR of 48%, but if offered these rates customers can expect high repayments and high loan costs.
A secured personal loan requires that the borrower provide some form of collateral, which could come in the form of equity in their home, a term deposit, or a vehicle. Secured loans often have more competitive interest rates than unsecured loans, and for bad credit applicants, these types of loan may work out cheaper than an unsecured loan. Repayment terms can vary between one to seven years, and the interest rate can be variable or fixed.
If a prospective borrower can't or doesn't want to provide any kind of security, they can consider applying for a variable rate or fixed rate unsecured personal loan. This type of loan will usually come with a higher rate, but may also require less paperwork than its secured counterpart. Applicants may also find fewer restrictions in the way they can use their loan funds.
While these loans are generally for $2,000 and less, there are lenders offering larger loans for up to $3,000. Also known as payday loans, these are unsecured personal loans that come with fixed fees and rates. They have relatively short repayment periods, generally ranging from 16 days to one or two years. Repayment times of these loans depend on when the approved applicant gets paid, and in most instances, they have to set up direct deposits so the amount is deducted on the day of payment. Be aware that while fees and interest rates are capped for these small-medium loans, repayments are still usually very high.
Prospective applicants should check to see whether a loan's rate is fixed or variable, and look at the upfront and ongoing fees associated with the loan. If they are applying with a non-Authorised Deposit-taking Institution (ADI), such as a payday lender or an online loan provider, the lender will be restricted as to how much they can charge. For a loan up to $2,000, fees are capped at a 20% establishment fee and a 4% monthly fee. For loans between $2,001 and $5,000, charges are capped at a $400 establishment fee and a 48% p.a. interest charge which includes all other fees and rates.
Can customers make extra payments or repay the entire amount ahead of time without attracting any penalties? Do approved applicants get to choose between making weekly, fortnightly, and monthly repayments? Do they have to set up direct debits or do you have other options when it comes to repayment methods? These are all good questions to ask to see how flexible repayment options are with a loan.
Repayment terms differ between lenders but customers will usually have between 60 days and one year to repay their loan. Applicants should choose repayment terms that meet their needs and budget. Be aware that longer repayment terms will end up costing more over the life of the loan, but shorter terms will mean higher repayments.
Some lenders offer mobile, online and phone banking options with their loans, so that customers can keep track of their repayments and manage their accounts more easily.
There are no set parameters that can guarantee the approval of any given $3,000 loan application, but prospective applicants can take certain measures to increase the likelihood of their application being approved.
If you still have questions about $3,000 loans, see if you can find the answer below. You can also use the form at the end of the page to submit a question to our team.
How do I begin the application process?
The first step is to compare your options, and after you find a loan you wish to learn more about or apply for, click on the "Go to Site" button. Once on the lender's website you can begin the application process.
What happens after I apply?
Some lenders inform you of their decision in minutes, while others can take up to two business days. Expect to hear from the lender about its decision irrespective of whether it grants the loan to you or not.
Can I be approved for a loan if I receive Centrelink payments?
There are lenders who will consider you for a loan if you receive Centrelink payments. Read our guide on Centrelink loans and see who may consider you for a loan.
Can I borrow more than $3,000 with bad credit?
While it might be inadvisable to apply for larger amounts of credit when your credit needs improving, some lenders do offer bad credit history loans.
Imperfect credit? A non-conforming loan might help you become a home owner.
Follow these tips to get a handle on your credit with this free tool.
How to get an accurate snapshot of your credit history with this free tool.
A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.
Pepper Money is an Aussie non-bank lender that offers a vast range of personal loans and home loans to customers Australia-wide. Find out more here.
Find out more about Handypay's personal loans for home improvements. Personalised rates start from 6.75% p.a. on terms from 1 to 7 years.
While COVID-19 has delivered a number of economic challenges, there is one area where Australians have benefits – with investment loans now cheaper than they've ever been.
Find out more about Pepper Money's no fee personal loan and benefit from a competitive rate from 6.95% p.a., zero fees and loan terms of up to 7 years.
Looking to renovate your home? Find out more about Brighte's personal loan for home improvements and ways in which it may be able to benefit you.
Need $3,000 for real estate transaction which will close on August 3, 2016. Will be repaid on August 4, 2016. Can you do it?
Hi Henry,
Thanks for your comment.
Please note that finder.com.au is a financial comparison and information service, not a lender.
If you want to apply for a particular loan product listed above, you can do so by clicking the “go to site” button. Before submitting an application, it would be good to check the eligibility criteria first.
Cheers,
Anndy
Can I get $5000 with bad credit?
Hi Raymond,
As long as you meet the minimum criteria set by the lender you may be able to be approved for a loan even if you have bad credit. You can compare your bad credit options up to $5,000 here.
Hope this helps,
Elizabeth
I need a 1k loan now.family emergency.where can I go to get it.fico 580.
Hi Sandi,
You’ve come through to the Australian section of our website – to compare your options for US small loans you can head to this page.
Thanks,
Elizabeth
Please I need to apply for a loan $3000 and I need it today how can I get it plz
I need a loan of 3000 over 24 months
I don’t have bad credit I jus want a 3000 loan over 24 months so repayments are no pressure
Hi Nadine
Thanks for reaching out. To discuss your eligibility or options for a loan, please compare your loan options via this link, review the requirements and then get in touch with a lender featured on this page.
Best Regards,
Joanne
Hi Nadine,
Thank you for your inquiry.
As per checking you are already on the correct page. If you have a bad credit and looking for a loan $3,000 over 24 months. Please review the offers listed above.
I hope this information has helped.
Cheers,
Harold
Hi Serafi,
To apply for any of the lenders on this page please click ‘Go to Site’. Many of them can transfer funds to you, if you are approved, on the same day.
Thanks,
Elizabeth
My credit score is 270 got full time job i earn over 1k weekly. I have3 small loans paying about 400 weekly to pay till late october. Im looking for 6k loan to pay off all these small loans n keep whatever is left on my account. Can any1 help me here so i can start fresh im too stressed at the moment.
Hi Rajesh,
Thanks for your question.
You might want to check your eligibility and see your loan options for up to $10,000 if you have bad credit. You can read through our review page and apply through the lender’s website. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
I hope this will help.
Thanks,
Elizabeth
I am a bankrupt and really in a bad way broke no assetts really depressed but have a job can I get a loan to get some things and fix a hearing aid and new glasses pay some nasty little bills I just can’t afford all this at the moment.
Hi Mark,
Thanks for your comment and we are sorry to hear about your present situation.
You may want to consider some of the loan options from unemployed loans. Here you can view some of the loan options available for individuals who are either unemployed or bankrupt.
You may also want to view our guide to repairing your credit history after bankruptcy.
I hope this has helped.
Thanks,
Sally