All is not lost if you have bad credit. There are companies out there that offer bad credit loans across Australia.
If you have bad credit, chances are, banks and traditional lending organisations have declined your loan application. Fortunately, there are companies that offer financing for individuals with bad credit. These are payday loans, design to cover you until your next paycheque.
It is important to consider a variety of factors such as your ability to pay, the interest rate, and other conditions associated with the loan before applying.
Sunshine Short Term Loans
Sunshine Loan Centres offer a fast and easy online application. You can apply today to get approved for up to $2,000.
- Loan Amount: $2,000
- Loan Term: 9 weeks
- Turnaround Time: 1 hour - conditions apply
- Total Cost of Borrowing $100: 20% of principal amount (establishment fee) + 4% of principal amount per month.
- Bad credit borrowers OK
- Quick and easy Approval
Bad Credit Finance Options
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.
What should I do if I have bad credit?
- Consider a credit repair service. There are companies that offer professional credit repair services. The benefit is that they know exactly what to look for and they have a process that can repair your history quickly. The downside is that they usually charge per listing removed so it can end up costing you a lot of money.
- DIY credit repair. It is possible to repair your credit history yourself. It involves asking for a copy of your credit history and looking for items that are erroneous. You can ask the credit rating agency to remove these errors or update your file.
I've heard about bad credit loans, how do they work?
Companies that offer bad credit loans lets you get access to credit when you need it, though this comes at a very high price. The loan can be used to cover emergency costs such as bills and urgent repairs.
In most cases, it is easy to qualify for a payday loan. However, the standard interest rate for these loans is around 20% plus a range of fees. You can ask for a loan from $100 to $1,200 and most payday providers offer an online application process. When approved, you can normally expect your funds within 24 hours, and when your payday arrives, the funds are debited from your chosen transaction account.
In most cases you’ll need to be over the age of 18, have your own email address, mobile phone number, a steady source of income and a verifiable Australian transaction account.
Things to consider comparing with bad credit loans
- Check the fees.
Lenders charge varying fees. Check to see how much each lender charges before making a decision. Short term cash providers generally charge a fee of 4% of the principal per month.
- What are the interest rates?
The interest rates associated with bad credit personal loans are generally higher above 30% p.a. Consider the repayment terms before borrowing.
- How long is the loan term?
In most cases you’ll need to pay the loan back by your next payday. This gives a window of 15 - 50 days, depending which product you opt for. However, newer loans allow for 2 - 4 year bad credit loan terms.
- What are the penalties for default/missed repayments?
As with most loans, there are penalties associated with missing repayments.
The good and the not so good
- Available even if you have bad credit. Due to the lenient lending criteria, borrowers with bad credit are still eligible.
- Minimal documentation required. Most lenders do not require you to submit a comprehensive range of documents.
- Set fees. You’ll know exactly how much you need to pay each week when you apply for the bad credit loan.
- 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.
I want to apply, what's next?
If you think that the bad credit loan is for you, then take a look at the comparison table on this page for more details. Simply click on link on each item to get started. Generally, applying for a bad credit loan involves submitting an application online which can take up to 15 minutes.
Bad credit lenders typically respond quickly to online applications. The turnaround time is usually within 24 hours or the next business day.