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Just because your credit history isn't great doesn't mean you can't get a loan. While payday lenders usually don't require a good credit score to take out a loan, most only offer finance of up to $2,000. However, it is possible to get a $5,000 loan with bad credit. Be mindful that there are high costs that come with these loans, including the maximum establishment and monthly fees that can be charged, plus high late payment and default fees.
If you're unemployed and looking for a loan you can read our guide to unemployment loans.
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.
Bad credit loans work in a similar way to standard personal loans, except with different fee and interest rate structures. These loans are more expensive because the lenders need to offset the risk of lending to those with poor credit histories. However, bad credit history loans up to $5,000 have capped fees and charges.
With bad credit loans, an applicant's credit history may or may not be checked. This will be disclosed by the lender beforehand. Most lenders will check a person's credit history to ensure that they are reasonably able to repay the loan, but lenders that advertise bad credit loans will not disqualify applicants based on credit history defaults. A number of lenders use the New Payments Platform (NPP) to make payments which allows the funds to reach your bank account within 24 hours.
When borrowing from a non-authorised deposit-taking institution, which is basically any lender that isn't a bank, credit union or building society, the following charges apply:
There are various options when it comes to finding up to a $5,000 loan with bad credit history. Click through to the review page to find out more details on these loan products.
Lender | Loan amount | Eligibility criteria | Find out more |
---|---|---|---|
Fair Go Finance | $500 to $10,000 |
| |
nmoni | $2,001 upwards |
| |
Swoosh Finance | $2,000 to $4,584 |
| |
Nimble | $300 to $5,000 |
| |
Rapid Finance | Varies |
| |
Wallet Wizard | $500 to $5,000 |
| |
MoneyMe | $2,100 to $5,000 |
| |
Good to Go Loans | $500 to $5,000 |
| |
Cash Converters | Up to $4,600 |
|
There are some important points to consider before applying for a $5,000 loan with bad credit.
Generally, if someone has any black marks on their credit file (defaults or bankruptcies, for example) it's safe to assume they have some degree of "bad credit" history. However, as the degree of "bad credit" varies between people, one of the easiest ways to check if you have a bad credit rating is by checking your credit report and credit score. You can do this for free with Finder.
Having a bad credit history can make it more difficult to take out a loan and can result in lenders charging a higher interest rate.
When checking your credit report, you should look out for bad credit listings such as defaults, bankruptcies, late payments, debt agreements and excessive credit enquiries. Your credit score will also give you a good indication of your standing. The credit score you receive from Finder is from credit reporting agency Experian, and will be a number between 0 and 1,000. You can see a breakdown of the credit score ranges below from both Experian and Equifax – the lower your credit score, the more likely it is that you have bad credit.
Credit band | Experian | Equifax |
---|---|---|
Excellent | 800–1,000 | 833–1,200 |
Very good | 700–799 | 726–832 |
Good | 625–699 | 622–725 |
Fair/average | 550–624 | 510–621 |
Weak/below average | 0–549 | 0–509 |
Some of the questions we get asked the most often in regards to $5,000 loans with bad credit include:
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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 for international lender quick and easy
Hi Addhu,
Thank you for reaching out to finder.
Though the page we have does not have an article on international lenders available, you may want to check available local lenders or banks that are able to provide you a loan that you require. The page we are on is specific to the Australian geo. Hope this helps!
Cheers,
Reggie
Hi I have an emergency n need to borrow $2.500 ASAP I try many places but refuse to help me because I’m not working at the moment due to health issues I get a Centrelink payment I can pay it back please need help urgently if anyone can help me ty.
Hi Laura,
Thanks for leaving a question on finder.
Sorry to hear about what you went through. Aside from the lenders on the table above, you can check out THIS link for loans specific to people who get Centrelink payments.
When comparing short-term loans, ensure you take into consideration any fees, charges and rates you may be charged. It’s important to weigh up all your options before applying for any form of credit.
If you’re experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday.
Cheers,
Joel
bad credit loans for students
Hi Brian,
Thanks for leaving a question on finder.
There are no interest free student loans in Australia considering you also have a bad credit score. We have a comparison of student loans in THIS link that you can check out. Please check out the eligibility criteria for each loan provider before you apply so you would know what you are getting into.
Cheers,
Joel
How long does the process take am I gonna get at least something?
Hi Debbie,
Thank you for your comment.
The lender may usually contact you within 24-48 hours after you’ve submitted your application online. This is the reason why you should provide accurate details and necessary documents and information needed for a smooth processing. It would be best to contact the lender directly for an update.
Regards,
Jhezelyn
How much a fortnight on $2000?
Hi Andrew!
Your repayment terms and eligibility will be discussed collectively upon application by your prospect lender.
You may click “Go to Site” green button of your chosen to proceed with your application.
Hope this helps.
Cheers,
Jonathan
Hi there I need a loan up to 4,000 I have ok credit rating but don’t seem to be anyone who wants to give me one can you recommend any loaners that might help I am employed full time
Hi Jason,
At present, if you have clean record with your credit history you may want to consider the available options here.
I hope this information has helped.
Cheers,
Harold
can i get a 5000 loan with a bad credit rateing
Hi John,
Thanks for your question.
The lenders on the page above may consider you for a loan, subject to other eligibility criteria.
Please make sure to read the terms and conditions of the loan product you are interested in before submitting your application.
Cheers,
Anndy
Hi! I would like to know if it is possible for me to get a $7,000-$10,000 loan (or car loan) on a Centrelink income. I know I will be able to afford the repayments but which bank would consider me?
Will I get approved for this loan?
Hi Letitia,
Thank you for your inquiry.
If you want to check your eligibility for a loan, please review the criteria set out by the lender. You can click on the ‘Go to site’ button above if you’re eligible and you wish to apply. I also suggest that you contact the lender directly to discuss your chances of approval.
Cheers,
May
Hi Rose.
Thank you for your inquiry.
There are lenders that will consider lending to you if you’re receiving Centrelink payments. Please note that your eligibility for a loan and the amount that they lend to you will depend on the amount you earn, whether or not you’re employed and your credit history. You can take a look at the lenders and your options on this link and see if you meet the eligibility criteria.
I hope this helps.
Cheers,
Jason
Hello, i’m in need of an $8000.00 loan for a deposit on a truck. The truck is $70,000.00 and have finance for $62,000.00 but that lender requires the truck as security.
I have a contract for work for the truck earning $3000-4000pw and could easily make $300pw repayments.
However, as i don’t have the truck yet i am not working and on Centrelink benefits, though i could have the truck working in a week if i have the money. Only have one blemish on my credit rating and don’t currently owe any money. Current assets are a car worth $3000.00 and a few grand in other assets. is there anyone that would be able to help?
Hi David,
You can find lenders that consider bad credit applicants for loans up to $10,000 on this page, but it’s important to keep in mind that your current financial situation will be taken into account when you’re being considered for a loan. The lender will be able to see that you have a large loan already and no employment (as of yet), and while you have upcoming employment it will be your current financial situation that is considered.
You should contact the lenders prior to applying to see your chances of being approved.
Hope this helps,
Elizabeth
Hi hi there,
I have a default on my credit report that’s I never paid, it’s been 5 years tomorrow (10/10/11). Will it disappear from my credit file and would I be able to apply for a loan straight away? I’m in need of $5000, I have a full time job but I think my credit rating is only 400.
Thanks in advance.
Hi Dani,
Veda automatically removes default listings on or before the expiry date. To be sure the listing has been removed, you can order a free copy of your credit file (it takes 10 days to arrive) or pay a fee to receive it overnight. This way you can be sure whether or not the listing has been removed, and request it be removed by Veda if it hasn’t.
Lenders will see an updated copy of your credit file when they check your credit so only the current listings will be taken into account.
Hope this helps,
Elizabeth