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How to be approved for a $5000 loan with bad credit

Information verified correct on October 21st, 2016

Need to borrow up to $5,000 today? A guide on all of your personal loan options, even if you have bad credit.

When you’ve got a bad credit history you're usually not eligible for a loan from a bank or traditional credit lender. However, there are 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.

Loans for up to $5,000 you could apply for

The loans below allow you to borrow cash for a short period when you may need the emergency money.

Rates last updated October 21st, 2016
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Warning about Borrowing

payday-warningDo 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.

Tips on being approved for a loan with bad credit

There is no one surefire way to ensure you are approved for a 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 what lender's 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 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 amount of applications you make.

What brands offer bad credit loans up to $5,000?

You have various options when it comes to finding 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.

LenderDetailsEligibility criteriaFind out more
Max Finance
You can apply for a loan between $1,600 and $10,000 with Max Funding.
You need to earn at least $500 per week and own an asset. Bad credit considered.
Fair Go Finance
This lender offers cash loans between $500 and $5,000 and also secured loans between $2,250 and $5,000.
You may be able to apply if you're self-employed, on Centrelink or employed casually. You can apply if you have bad credit.
You can apply for a loan between $300 and $6,500 with Credit24.
You need to be employed, have good credit and earn at least $1,000 per month. Centrelink can't be more than 50% of your income.
You can apply for loans up to $5,000 with a Nimble Medium Loan.
You need to earn a regular income and not be dependant on Centrelink benefits. Bad credit considered.
Rapid Finance
You're able to apply for a range of bad credit loans, including car loans, with Rapid Finance. Loan amounts differ depending on your needs and situation.
Bad credit and self-employed applicants are accepted.
Wallet Wizard
With its Smart Loan, you can apply for up to $5,000 with Wallet Wizard.
Bad credit, Centrelink and unemployed applicants are considered.
Apply for a personal loan up to $10,000 with MoneyMe and have up to 3 years to repay what you borrow.
Bad credit and Centrelink applicants are considered but good credit is rewarded.
Good to Go Loans
You can apply for a cash loan between $500 to $5,000 for various needs, and the loans are available to borrowers with bad credit.
Centrelink and bad credit applicants are considered.
Needy Money
With its medium loan, Needy Money lets you apply for between $2,001 and $5,000.
Bad credit and bankrupt borrowers are able to apply.
Swoosh Finance
You can apply for loans from $400 up to $5,000 with a Swoosh Finance loan.
You must be over 18, have been employed for at least three months and be an Australian citizen or permanent resident.

Options for an unsecured $5000 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 do not have to attach an asset as a guarantee.

Compare a range of options below if you need to borrow $5000.

Rates last updated October 21st, 2016
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
Latitude Personal Loan (Secured)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
From 12.99% (fixed) 14.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
ANZ Fixed Rate Personal Loan
A flexible loan option that lets you pay off your debt, buy a car, fix up your house or cover travel costs.
From 13.95% (fixed) 14.81% $5,000 1 to 7 years $0 Go to site More
ANZ Variable Rate Personal Loan
A variable rate loan that lets you make and redraw additional repayments.
From 14.69% (variable) 15.55% $5,000 1 to 7 years $0 Go to site More
Westpac Unsecured Personal Loan
Borrow up to $50,000 for a term of up to 7 years with the unsecured Loan from Westpac
From 12.99% (fixed) 14.01% $4,000 1 to 7 years $250 Go to site More
St.George Unsecured Personal Loan - Variable Rate
The Variable Rate Unsecured Personal Loan St.George lets you borrow up to $40,000 for a period of up to 7 years.
From 14.74% (variable) 15.61% $3,000 1 to 7 years $195 Go to site More

Have we missed anything in the comparison table? Tell us

How much do $5,000 loans cost?

If you're borrowing from a non-Authorised Deposit-taking Institutions (ADIs), 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. that 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 $5000 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 practice to find difficulty being approved for a personal loan from other credit providers if you’ve got a bad credit history. Getting a bad credit unsecured loan gives you access to lenders who 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 to 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 as you don't have to worry about making the repayments yourself, you just need the money available in your account.
  • The loans are high-cost
    Due to high risk of this loan the lender will usually charge a 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 who prey on people with bad credit, so make sure you evaluate the lender before you apply.

Things to avoid with bad credit unsecured loans

There are quite a few risks associated with these types of loans. 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 unsecured personal 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 LenderAvg. Interest RateAvg. RepaymentTurnaround Time
Traditional Bank 14% p.a. $1041.93* 1-3 business days
Online Lender 39.20% p.a. $672.24^ 1 hour - conditions apply
Payday Loan 319.38% p.a. $1280~ 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 $1000 loan over 32 days

Frequently asked questions

How do I apply for a bad credit unsecured loan?

You can apply for 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 loan online up to $5,000, your details are securely transmitted over an encrypted connection. The majority of sites you apply with use 128-bit SSL encryption to ensure your details are safe and secure.

Can I get a $,5000 loan if I am unemployed?

When an institution lends you money, they want to be certain that you can repay back 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 be still eligible for a personal loan - please read our guide to getting a loan on Centrelink before applying.

Options on borrowing smaller amounts like $1000

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228 Responses to How to be approved for a $5000 loan with bad credit

  1. Default Gravatar
    Dani | October 9, 2016

    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.

    • Staff
      Elizabeth | October 10, 2016

      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,


  2. Default Gravatar
    RIESCHA | September 28, 2016

    I’m living and working in Western Australia..
    I’m in 820 visa but I’ll get my permanent resident in February next year so I really need A$6000 to pay off my wedding..
    Which lenders that suitable for me?

    Thank you,
    Warm regards,

    • Staff
      Elizabeth | September 28, 2016

      Hi Reischa,

      There is a range of lenders that might consider you for a loan as a temporary resident. You can compare your options on this page.

      I hope this helps,


  3. Default Gravatar
    George | August 18, 2016

    Hi I am interested in purchasing a vehicle that I have already found for my business I’ve just become a contractor with a large phone company and I need the van and I’m asking because I have bad credit and not able to finance it.Wondering if I’ll be able to get a loan my credit score is low but I’ll be able to pay it back within a couple months.

    • Staff
      Elizabeth | August 18, 2016

      Hi George,

      You can consider some of your loan options on the page above – these lenders (in the bad credit section) will consider you for a loan with a low credit score. The minimum criteria are listed on each review page so you can click through and check if you meet these before you apply. You’ll usually need to show evidence of a steady income for at least three months in the form of your bank statements.

      I hope this helps,


  4. Default Gravatar
    | July 21, 2016

    Hi Sir/Madam, i am from India i am a full time forex trader and this is also my living business, i am also a software developer and being a developer whatever software needed for my trade i develops by my own.

    Complete one year of my researched on the main hedging/banking trading strategy i gets a handsome profits all the time with a 0.99% of risk.

    But to make it live this strategy needs about USD 30000 of investment so it may give me round about $500/day, i am saying this based on one year of demo account’s status.

    Can you please suggest who or which company may help me in this region?

    Hope for positive reply…

    • Staff
      Elizabeth | July 21, 2016

      Hi Ricky,

      The lenders on this page only consider current residents of Australia. If you’re looking for international investment you’ll need to get in contact with a private investor or a lender in India that can offer the loan in US dollars.

      I’m sorry I couldn’t be of more assistance,


    • Default Gravatar
      mrisho | August 14, 2016

      hi, I want to establish business but I don’t know can I get your services in Tanzania?

    • Staff
      Elizabeth | August 16, 2016

      Hi Mrisho,

      Unfortunately these loans are only available to current residents of Australia. You’ll need to find a lender in Tanzania to finance your business.

      Sorry I couldn’t be of more assistance,


  5. Default Gravatar
    | July 19, 2016

    What company has the best lending deals?

    • Staff
      Elizabeth | July 20, 2016

      Hi Tanya,

      I can’t advise on which lender is “the best” as the best loan for you will depend on your needs and situation. I’d advise you to compare your options above and find which loan best meets your needs, and find a loan you’re eligible for and that you want to apply for. If you find one you can click “Go to Site” to submit your application.

      I hope this helps,


  6. Default Gravatar
    Norma | June 21, 2016

    I from the unted state Pennsylvania could I apply for a loan

    • Staff
      Elizabeth | June 21, 2016

      Hi Norma,

      You’ve come through to the Australian section of our website – you can find out some of your loan options on this page.

      Hope this helps,


  7. Default Gravatar
    Dinesh | June 13, 2016

    I am from India, can I apply for a loan from above stated lenders…???

    • Staff
      Elizabeth | June 14, 2016

      Hi Dinesh,

      Unfortunately, these loans are only available if you’re currently residing in Australia. You may need to find a lender in India to apply for a loan.

      Sorry I couldn’t be of more assistance,


  8. Default Gravatar
    Ronald | June 8, 2016

    I Ronald need $5000 for some bills and need a used car please. Thank you

    • Staff
      Elizabeth | June 8, 2016

      Hi Ronald,

      You can find some of your options for $5,000 loans on the page above. Have a look through the criteria and see if you are eligible, and once you find a loan you are eligible and want to apply for, you can click through to the review page or click “Go to Site” to submit your application.

      Hope this helps,


  9. Default Gravatar
    Stephen | June 2, 2016

    I’m on a.disability pension,I’m 59yrs old.I am looking and hoping someone can help me,with a unsecured loan so I can pay off my bills,which have gone to debt collectors.The debts that I have were not paid due.to my career who.walked out and left me with all bills to pay.I have been trying so hard to get a loan for $3500.MY bills come to$1500,but I also would like to buy a second hand car,to help my mum to get around and myself.I would use the.car for collateral if possible.I just need a chance to clear my name..Due to what my career did to me.So please if there is a firm that would help me,please let me know.Thank you.PS I have always told the truth about my situation,when I apply.

    • Staff
      Elizabeth | June 3, 2016

      Hi Stephen

      Unfortunately I can’t recommend any specific lender to you but you can find some of your options listed above. If your loans have already gone to collections you may benefit from calling the free financial counselling service hotline on 1800 007 007 to discuss some of your options and see if taking out an additional loan is the best option for you. If you decide it is the best option, the loans for up to $5,000 are listed on this page and you can read our guide for pensioners on this page (as well as some alternative loan options).

      I hope this information will help,


  10. Default Gravatar
    | May 30, 2016

    I really need some money today can someone please help me I need $50 to $100 need to purchase my medication an also some groceries I tried but keep getting rejected I’m only asking for a small loan to help me

    • Staff
      Elizabeth | May 30, 2016

      Hi Flora,

      You can compare your small loan options on this page. Before you apply, make sure you review the eligibility criteria to ensure you are eligible for the loan and can afford the repayments. All the eligibility criteria are listed on the review pages (which you can see by clicking on the name of the lender) and on the lender’s website. If you have questions about your eligibility you may want to contact the lender directly.

      I hope this has helped,


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