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.
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:
For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.
Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
If you are on government benefits, ask if you can receive an advance from Centrelink. Phone 13 17 94.
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.
Compare these bad credit loan options
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
Earn at least $500 per week
Only consider single parent, family tax benefit and carer's allowance for Centrelink income
Employed on a casual, part-time or full-time basis
Bad credit and self-employed applicants are considered
Wallet Wizard
$500 to $5,000
Bad credit, Centrelink and unemployed applicants are considered
MoneyMe
$2,001 to $5,000
Over 18
Australian residents
Be employed
Good to Go Loans
$500 to $5,000
Over 18
Receive regular income
Centrelink borrowers considered
Needy Money
$5,001 to $100,000.
Bad credit borrowers are able to apply
Bankrupt and Part 9 borrowers can apply provided they haven't entered into the bankruptcy/Part 9 in the past 12 months
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?
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 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.
Credit band
Experian
Equifax
Excellent
800-1000
833-1200
Very good
700-799
726-832
Good
625-699
622-725
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.
Updated August 25th, 2019
Compare bad credit loan options below if you need to borrow $5,000
Updated August 25th, 2019
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.
*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.
Matt Corke is the head of publishing in Australia for Finder. He previously worked as the publisher for credit cards, home loans, personal loans and credit scores. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time he has survived the dot-com crash and countless Google algorithm updates.
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!
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.
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.
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.
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.
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! 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?
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.
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.
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?
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.
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.
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.
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finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
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Do you really need a loan today?*
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