How to get access to finance without your credit history holding you back.
Getting access to finance from traditional banks and lenders is difficult without good credit. However, bad credit doesn't cut off your access to finance. Alternative finance providers offer loans of up to $5,000 or even $10,000 that you can apply for even if you have black marks on your credit file.
This guide will take you through what you need to know to submit your application.
- Centrelink borrowers considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
Sunshine Short Term Offer
This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000
- Loan amount: $2,000
- Loan term: 9-15 weeks
- Turnaround time: 30 Minutes - conditions apply
- Fees: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks
Compare a range of finance options for bad credit
Warning about Borrowing
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 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 way to check if you have bad credit is by getting your free credit score. This will give you a snapshot of your credit position and show where you fall in the credit landscape.
If you check your credit score for free with finder.com.au you will see where you are in Equifax's scoring system. This score will be a number between 0 and 1200. "Excellent" scores are between 833 and 1200 and "very good" scores are between 726 and 832. A "good" credit score is between 622 and 725. If you are on the lower end of the "good" range or anywhere below, you may want to order a free copy of your credit file to see if there are any black marks against your name that may make a lender put you in the "bad credit" category.
How does finance for bad credit 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.
What will the loan cost?
The costs differ depending on how much you are applying for:
For loans under $2,000 with terms of between 16 days and 1 year:
- 20% establishment fee
- 4% monthly fee
For loans between $2,001 and $5,000 with terms of between 16 days and 2 years:
- A one-off fee of $400
- A maximum annual interest rate of 48% including all other fees and charges
For loans of more than $5,000 or with terms longer than 2 years:
- Fees and charges must not be more than 48% p.a. (including any establishment or fixed fees)
What should I consider before applying?
Things to consider comparing with bad credit loans
- The loan term. Check how long you'll have to repay the amount you need to borrow and if this will make your ongoing repayments affordable.
- The costs. How much will you be charged? Is it in line with what you can afford?
- The penalties for default or missed repayments? As with most loans, there are penalties associated with missing repayments. Find out what these are before you apply.
The benefits and drawbacks to consider
- A range of lenders available. There is a range of loans available so you can compare and find the right and most competitive one for you.
- Fast application process. Most lenders offer a one-day turnaround.
- Set fees. You’ll know exactly how much you need to pay each week when you apply for a bad credit loan and most allow early repayment without penalty.
- Higher fees and rates. Bad credit loans are considered high-risk so lenders charge significantly higher rates.
- Disreputable lenders. It is important to be careful in applying for a bad credit loan. There are lenders out there who prey on individuals with bad credit.
How do I apply for bad credit finance?
If you think bad credit finance is for you, then take a look at the comparison table on this page for more details. Generally, applying for a bad credit loan involves submitting an application online which takes about ten minutes to complete.
Bad credit lenders typically respond quickly to online applications. The turnaround time is usually within 24 hours or the next business day.