A guide to $5,000 loans with bad credit

Find out the options for getting a $5,000 loan when you have bad credit.

Updated . What changed?

Fact checked

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

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.

Are you struggling financially?

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

⚠️ 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.

How do $5,000 bad credit history 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 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.

$5,000 loans with bad credit interest and fee caps

  • One-off establishment/application fee
  • Maximum annual interest rate of 48%, which includes all other fees and charges

Compare $5,000 bad credit history loan options below

Data indicated here is updated regularly
Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $5000 Loan)
Nimble Medium Loan
up to 22 months
1 hour - conditions apply*
Application fee of $400 + 47.62% p.a.
Apply for up to $5,000 and have up to 22 months to repay.
Credit24 Medium Term Loan (Good Credit)
12-24 months
Same day
$400 establishment fee + 48% p.a. interest
A small loan with long terms: Apply for up to $10,000 and have up to 3 years to repay.
Fair Go Finance Personal Loan
3-36 months
Within 24 hours
from 17.9% p.a. + establishment fee of between $360 - $771 + $9 monthly fee
A larger loan up to $10,000 you can apply for even with bad credit. Fast turnaround within 1 business day. Note: You must earn more than $500 per week.
Swoosh Finance
60 days -12 months
Next business day
$416 + 47% p.a. of borrowed amount
A secured loan up to $4,584 you can apply for in 10 minutes. Have up to 1 years to repay what you borrow.

Compare up to 4 providers

How much do $5,000 loans with bad credit cost?

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:

  • Loans under $2,000. These charge a 20% establishment fee and a 4% monthly fee. Both fees are calculated using the loan principal.
  • Loans of $2,001 to $5,000. These loans are repaid over 16 days up to 2 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. These cannot charge more than 48% p.a. including all fees and charges.

Which companies offer bad credit loans up to $5,000?

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.

LenderLoan amountEligibility criteriaFind out more
Fair Go Finance
$500 to $10,000
  • Earn at least $500 per week
  • Only considers Single Parent, Family Tax Benefit and Carer's Allowance for Centrelink income
  • Employed on a casual, part-time or full-time basis
$2,001 upwards
  • Self-employed applicants must earn at least $35,000
  • Centrelink benefits cannot make up more than half of someone's income
More Info
Swoosh Finance
$2,000 to $4,584
  • 18 years old or over
  • Employed for at least 3 months
  • Australian citizen or permanent resident
$300 to $5,000
  • Earn a regular income
  • Not be dependent on Centrelink benefits
Rapid Finance
  • Bad credit and self-employed applicants are considered
More Info
Wallet Wizard
$500 to $5,000
  • Bad credit, Centrelink and unemployed applicants are considered
More Info
$2,100 to $5,000
  • 18 years old or over
  • Australian residents
  • Be employed
More Info
Good to Go Loans
$500 to $5,000
  • 18 years old or over
  • Receive regular income
  • Centrelink borrowers considered
More Info
Cash Converters
Up to $4,600
  • 18 years old or over
  • Australian resident
  • Earn over $750 per week
  • Be employed for at least 3 months
More Info

Woman in condo's kitchen on her laptop

How bad credit history affects taking out a loan

There are some important points to consider before applying for a $5,000 loan with bad credit.

  • Check the eligibility criteria before applying
    Lenders have set eligibility criteria that can be checked via the Finder review pages. Check the criteria online, if it's still not clear, call the lender to discuss the situation.
  • Order a credit report
    A credit report is the most up-to-date and accurate recording of a person's financial history and this is what lenders use to judge creditworthiness. You can order a full credit report for free with Finder.
  • Compare options before applying
    Make sure you'll be able to meet your loan repayments before starting the application process. It's important to remember that every application for credit you make shows up on your credit history. Therefore, it's best not to make numerous applications at the same time. It's also important to be crystal clear on the fine details of the loan before making an application or taking out a line of credit.

Alternatives to payday loans

Understanding 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 bandExperianEquifax
Very good700–799726–832
Weak/below average0–5490–509

What are the risks of no credit check loans?

  • Unreputable lenders. Check the lender has an Australian credit licence and is not charging you more than ASIC allows. The lender should be easily contactable.
  • Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
  • Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
  • Check rates and fees. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here - lenders can charge interest rates on top of everything else.
  • Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.

What to remember when comparing $5,000 loans

  • Online applications
    The convenience of online application forms and quick approval systems can save time. They also offer the opportunity to compare a range of credit providers.
  • Lenders consider your current financial situation over your credit score
    It's common to have difficulty being approved for a personal loan from many credit providers with a bad credit history. However, opting for a bad credit lender gives you access to lenders that look at your current financial situation when considering you for a loan. However, it's important to remember that bad credit lenders generally charge high interest and fees.
  • Repayment terms
    Some lenders may offer options of how to make repayments and direct debit repayments are offered by most lenders.
  • 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 the Australian Securities and Investments Commission (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 it's important to thoroughly research the lender in question and consider if a bad credit loan is the best approach to the situation.

Frequently asked questions about $5,000 bad credit loans

Some of the questions we get asked the most often in regards to $5,000 loans with bad credit include:

How do I apply for a $5,000 bad credit loan?

You can apply to any of the lenders on this page by clicking "Go to site". This will take you directly to the lender's website, where you can submit an online application.

What happens after I send my application?

This will differ between lenders, but typically applicants receive a notification of approval (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'm unemployed?

When an institution lends you money, it wants to be certain that you can repay the debt within the allocated timeframe. For people who are not employed, their income may be limited unless they are receiving Centrelink benefits. If the majority of income comes from Centrelink payments, they may still be eligible for a personal loan. Please read our guide to getting a loan on Centrelink before applying.

More guides on Finder

  • UCapital Unsecured Business Loan

    A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.

  • MoneyMe Freestyle Virtual Mastercard

    Get $250 credit back when you meet the eligibility requirements and 55 days interest-free on purchases.

  • How to start an accounting business

    Find out what you need to know before starting an accounting business.

  • How to start a beauty business

    From qualifications to getting the right insurance in place, here’s our guide to starting your beautician business.

  • Firefighters Mutual Bank Credit Card

    This low rate credit card has a $0 annual fee and is available to firefighters and other service workers or volunteers.

  • Pepper Money

    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.

  • Handypay Personal Loan

    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.

  • House painting

    Hire a professional to transform your home with a fresh lick of paint.

  • Citibank Ready Credit

    The Citibank Ready Credit unsecured revolving line of credit is available with a 3-year introductory rate of 5.9% p.a. on balance transfers.

  • Pepper Money No Fee Personal Loan Review

    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.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

248 Responses

    Default Gravatar
    addhuJanuary 7, 2019

    looking for international lender quick and easy

      Avatarfinder Customer Care
      JohnJanuary 7, 2019Staff

      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!


    Default Gravatar
    LauraSeptember 14, 2018

    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.

      Default Gravatar
      JoelSeptember 14, 2018
        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.


    Default Gravatar
    BrianJuly 28, 2018

    bad credit loans for students

      Default Gravatar
      JoelJuly 28, 2018

      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.


    Default Gravatar
    DebbieNovember 15, 2017

    How long does the process take am I gonna get at least something?

      Avatarfinder Customer Care
      JhezNovember 15, 2017Staff

      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.


    Default Gravatar
    AndrewJuly 4, 2017

    How much a fortnight on $2000?

      Default Gravatar
      JonathanJuly 5, 2017

      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.


    Default Gravatar
    JasonMay 15, 2017

    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

      Avatarfinder Customer Care
      HaroldMay 15, 2017Staff

      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.


    Default Gravatar
    johnApril 5, 2017

    can i get a 5000 loan with a bad credit rateing

      Avatarfinder Customer Care
      DeeApril 5, 2017Staff

      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.


    Default Gravatar
    RoseOctober 26, 2016

    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?

      Default Gravatar
      LetitiaJanuary 4, 2017

      Will I get approved for this loan?

      Avatarfinder Customer Care
      MayJanuary 4, 2017Staff

      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.


      Avatarfinder Customer Care
      JasonOctober 26, 2016Staff

      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.


    Default Gravatar
    DavidOctober 24, 2016

    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?

      Avatarfinder Customer Care
      ElizabethOctober 25, 2016Staff

      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,


    Default Gravatar
    DaniOctober 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.

      Avatarfinder Customer Care
      ElizabethOctober 10, 2016Staff

      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,


Go to site