Need to borrow up to $5,000 today? Here is a guide to your options for bad credit loans.
If you’ve got a bad credit history it can be hard to get a loan from the bank. However, there are bad credit loan options available.
You'll just need to show that you can repay the loan by providing evidence of a regular income, whether that's through employment or Centrelink. If you're unemployed and need a loan, read our guide here.
- Borrow from $500
- Flexible eligibility criteria
- Transparent rates and fees
100% confidential application
Wallet Wizard Smart Loan
The Wallet Wizard smart loan is a credit limit that lets you access up to $5,000.
- Loan amount: $5,000
- Loan term: Up to 2 years
- Turnaround time: 24 hours
- Fees: 47.8%
- Wallet Wizard Visa Card
- Automatic Payments
- Redraw and top-up available
Good credit and bad credit loans for up to $5,000 you could apply for
The loans below allow you to borrow cash for a short period when you need emergency money.
Compare some of the bad credit loan options below
- Cash Converters: Borrow up to $4,600 and get the funds within 48 hours of approval.
- Wallet Wizard: Access your funds as a line of credit. Bad credit and Centrelink borrowers considered.
- Nimble: Have you been caught short? You can apply for up to $5,000 online with this loan.
- Swoosh Finance: Find out if you have been conditionally approved for a bad credit loan within 60 seconds.
What companies offer bad credit loans up to $5,000?
You have various options when it comes to finding bad credit loans up to $5,000. You can consider any of the below. Click through to the review page to find out more details on the loan.
|Lender||Loan amount||Eligibility criteria||Find out more|
|Fair Go Finance||$500 to $10,000||
|enably||$200 to $2,000||
|Credit24||$500 to $6,500||
|Swoosh Finance||$2,000 to $5,000||
|Nimble||$300 to $5,000||
|Wallet Wizard||$500 to $5,000||
|MoneyMe||$2,001 to $5,000||
|Good to Go Loans||$500 to $5,000||
|Needy Money||$5,001 to $100,000.||
Tips on being approved for a bad credit loan
There is no single surefire way to ensure you are approved for a fast cash loan application. When you're considering applying for a loan and your credit history isn't perfect, keep the following tips in mind:
- Check the eligibility criteria before applying. Lenders have set eligibility criteria which you can check on finder.com.au review pages. Check to see if you meet these criteria, and if you're unsure you can call the lender to discuss your situation.
- Order a copy of your credit file. While you may think you have a good idea of your credit history, your credit file is the only true record of your financial history and is what lenders will use to judge your creditworthiness. You can order a free copy of your credit file from the main credit reporting agencies in Australia.
- Compare your bad credit loan options before you apply. Every application you make shows up on your credit file, so make sure you compare your options before you apply to minimise the number of applications you make.
How do bad credit loans work?
These 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 adverse credit histories.
When you apply, your credit history may or may not be checked (this will be disclosed by the lender beforehand), but bad credit will not disqualify you from borrowing.
How do I know if I have bad credit?
Generally, if you have any black marks on your credit file (defaults, bankruptcies, etc.) you can assume that you have some degree of "bad credit". However, as the degree of "bad credit" does vary between people, one of the easiest ways to check if you have bad credit is by checking your credit report and credit score, which you can do for free with Finder.
When you check your credit report you should look out for bad credit listings such as defaults, bankruptcies, late payments and excessive credit enquiries. Your credit score will also give you a good indication of where you sit. The credit score you receive from Finder is from 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.
|Fair / Average||550-624||510-621|
|Weak / Below average||0-549||0-509|
Options for an unsecured $5,000 loan with a good credit rating
If you don't have bad credit you can be eligible for a loan from a bank, credit union or standalone lender at a more competitive rate than bad credit loans. You may be able to borrow up to a limit of $5,000 and not have to attach an asset as a guarantee.
Compare bad credit loan options below if you need to borrow $5,000
How much do $5,000 loans cost?
If you're borrowing from a non-authorised deposit-taking institution (ADI), which is basically any lender that isn't a bank, credit union or building society, you'll be charged the following:
- Loans under $2,000. You will be charged a 20% establishment fee and a 4% monthly fee. Both fees are calculated using your loan principal.
- Loans of $2,001 to $5,000. These loans are repaid over 16 days to two years. You cannot be charged more than a one-off establishment fee of $400 and a maximum annual interest rate of 48% p.a. which includes all other fees and charges.
- Loans over $5,000. You cannot be charged more than 48% p.a. including all fees and charges.
What to consider when comparing $5,000 loans
The convenience of an online application
The convenience of online application forms and quick approval systems can save you time. You’ll also have a chance to compare a range of credit providers, improving your choices.
There are minimal or no credit checks
It's common to have difficulty being approved for a personal loan from other credit providers if you’ve got a bad credit history. Getting a bad credit loan gives you access to lenders that look at your current financial situation when considering you for a loan, and if you have major credit problems you can consider a no credit check loan.
The simple repayment terms
You'll generally have your repayments lined up with when you get paid, and some lenders will give you the option of how to make repayments. Direct debit repayments are offered by most lenders; you don't have to worry about making the repayments yourself, you just need the money available in your account.
Bad credit loans are high-cost
Due to the high risk of this loan, the lender will usually charge higher fees. However, keep in mind fees are capped by ASIC.
Loans over $2,001 come with high interest
While loans under this amount do not come with interest rates (only set fees), loans above this amount come with rates maxed at 48% p.a.
Disreputable lenders operate in the bad credit loans space
There are many disreputable lenders operating online that prey on people with bad credit, so make sure you evaluate the lender before you apply.
Things to avoid with bad credit loans
There are quite a few risks associated with loans for people with bad credit. Avoid the pitfalls outlined below:
- Not being cautious. ASIC has issued a warning to those intending to take out a bad credit personal loan due to high fees and inflexibility.
- Not considering the affordability. Make sure you think twice before applying for a bad credit loan up to $5,000 – the repayment period is a lot shorter than standard loans which means your repayments are quite high. Lenders usually offer calculators to show an indication of your repayments.
- Not considering the fees as well as the interest rate. Lenders may charge you an interest rate as well as fees and other charges. Check these before you apply and consider the total cost of the loan.
Quick ways to borrow money
|Type of lender||Avg. interest rate||Avg. repayment||Turnaround time|
|Traditional bank||14% p.a.||$1,041.93*||1-3 business days|
|Online lender||39.20% p.a.||$672.24^||1 hour - conditions apply|
|Payday loan||319.38% p.a.||$1,280~||Same day|
|Peer-to-peer loan||8.86% p.a.||$955.21*||Next business day|
*average repayment based on a $30,000 loan over 3 years | ^ based on a $3,000 loan over 220 days | ~ based on a $1,000 loan over 32 days
Frequently asked questions about bad credit loans
How do I apply for a bad credit loan?
You can apply to any of the lenders on this page by clicking "Go to site". If you don't see this button you can apply directly on the lender's website.
What happens after I send my application?
This will differ between lenders, but you will usually receive a notification as to whether you have been approved or not along with further instructions for the next steps.
Are my details secure?
When you apply for a bad credit loan online up to $5,000, your details are securely transmitted over an encrypted connection. The majority of sites you apply at use 128-bit SSL encryption to ensure your details are safe and secure.
Can I get a $5,000 loan if I am unemployed?
When an institution lends you money, they want to be certain that you can repay the debt within the allocated timeframe. If you are unemployed your income may be limited unless you are receiving Centrelink benefits. If the majority of your income comes from Centrelink payments, you may still be eligible for a personal loan – please read our guide to getting a loan on Centrelink before applying.