Bad credit payday loans

Most bad credit payday loans need you to earn at least $300 per week (excluding Centrelink payments) to be eligible

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Bad credit payday loans can let you borrow between $150 and $5,000 depending on the lender and your financial situation. Borrowing money with these types of loans can be expensive and should only be used in emergency situations. These lenders will still check your credit score during the application process so avoid applying for multiple loans at once.

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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.

What is a bad credit payday loan?

A bad credit payday loan is a payday loan that either specialises in, or offers, loans to borrowers with bad credit histories. While most payday lenders do lend to bad credit borrowers, this is not necessarily the case for all lenders. A bad credit payday loan is a small, short-term loan that's usually for less than $2,000 but can be as much as $5,000.

Bad credit payday loans have short loan terms, and borrowers usually need to make regular repayments according to the frequency of their pay (for example, monthly). Depending on the loan, the term may be as short as 16 to 60 days, but some may have terms as long as 1 or 2 years.

A selection of bad credit payday loans

Promoted

Sunshine Short Term Loans

This is a short-term loan offer with a fast and easy online application for good or bad credit borrowers. You can apply today to get approved for up to $2,000. Get your loan funded in 30 minutes - conditions apply.
  • Loan Amount: $2,000
  • Loan Term: 9-14 weeks
  • Turnaround Time: 30 minutes - conditions apply
  • Fees: 20% of loan amount + 4% of loan amount each month
  • Bad credit borrowers OK
  • Quick & easy Approval
Sunshine Short Term Loans
  • Bad credit applicants considered
  • Fast approval service
  • Borrow up to $2,000
Go to site More info
Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $1500 Loan)
Sunshine Short Term Loans
$2,000
9-14 weeks
30 minutes - conditions apply
$35
20% of loan amount + 4% of loan amount each month
$396
A small loan up to $2,000 that you repay over 9-14 weeks. Loans approved and funded in as little as 30 minutes.
Nimble Short Term Loan
$2,000
62 days to 9 months
1 hour - conditions apply
$15
20% of loan amount + 4% of loan amount each month
$372
A loan up to $2,000 with terms up to 62 days to 9 months. Centrelink cannot be your primary source of income.
Fair Go Finance Small Loan
$2,000
3-12 months
24 to 48 hours
$35
0% Establishment Fee + monthly fee 4%
$354
A small loan between $500 and $2,000 that can be funded in 24 hours. Note: Save up to $400 when you apply for a small loan from $500 to $2,000 and are approved for a 0% establishment fee. T&Cs apply.
Jacaranda Finance Personal Loan
$10,000
9-24 months
Under 1 hour - conditions apply
$35
$0 - $1,000 depending on credit
Borrow up to $10,000 and get access to your funds in as little as 1 hour.
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Swoosh Finance

Swoosh Finance

From

47 % p.a.

variable rate

From

66.03 % p.a.

comparison rate

  • Borrow up to $4,584
  • Loan term up to 1 years
  • Instant online decision
Security Logo

100% confidential application

Swoosh Finance

Swoosh Finance offer fast, reliable, and hassle-free secured loans up to $4,584 for when you are in need of money.

  • Loan amount: $4,584
  • Loan term: 60 days -12 months
  • Turnaround time: Next business day
  • Fees: $416 + 47% p.a. of borrowed amount
Go to site
Promoted
Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $5000 Loan)
Nimble Medium Loan
$5,000
up to 22 months
1 hour - conditions apply*
$15
Application fee of $400 + 47.62% p.a.
$262.75
Apply for up to $5,000 and have up to 22 months to repay.
Swoosh Finance
$4,584
60 days -12 months
Next business day
$35
$416 + 47% p.a. of borrowed amount
$244
A secured loan up to $4,584 you can apply for in 10 minutes. Have up to 1 years to repay what you borrow.
Fair Go Finance Personal Loan
$10,000
3-36 months
Within 24 hours
$35
from 17.9% p.a. + establishment fee of between $360 - $771 + $9 monthly fee
$238.07
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.
Jacaranda Finance Personal Loan
$10,000
9-24 months
Under 1 hour - conditions apply
$35
$0 - $1,000 depending on credit
$226.47
Borrow up to $10,000 and get access to your funds in as little as 1 hour.
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More bad credit payday loan comparisons

Sort through the table below to find out how much you might be able to borrow.

Loan nameLoan features
Swoosh Finance LoanBorrow up to $4,584 with a short-term loan from Swoosh.
Sunshine Short Term LoansYou could borrow up to $2,000 without a credit check.
Nimble Short Term LoanApply online for up to $2,000 with the Nimble flexible loan.
Cash Train LoansCash Train offers a loan up to $2,000 for bad credit borrowers.
Ferratum Cash LoansGet a loan for up to $1,900 without a credit check.

Can people with bad credit get a payday loan?

Payday lenders have different lending criteria than other financial institutions and credit issuers. This is how they can offer loans to borrowers with negative listings on their credit reports. However, the lender will still complete a credit check and applicants must meet the eligibility requirements. Lenders will consider your current employment, earnings and sources of income including government benefits like Centrelink. Lenders will also consider the last 90 days of your bank statements to determine if you can repay the loan.

What is the eligibility criteria for a payday loan?

The requirements will vary between lenders and specific loans, but you'll usually need to meet the following:

  • Residency. Must be an Australian citizen or permanent resident.
  • Age. Over 18 years of age.
  • Income. Receive a regular income, either through employment or Centrelink benefits. Many lenders won't give you a loan if government benefits are your primary source of income.

These are just some examples of the criteria you'll need to meet, so make sure to check the specific eligibility requirements when you're comparing your options.

Are there any guaranteed loans for bad credit?

Borrowers should be wary of any lender that offers "guaranteed" finance because this goes against ASIC guidelines to responsibly lend credit. Lenders should only supply finance to people who meet the specified eligibility criteria. If you do not meet a lender's eligibility criteria, you should not apply for the loan.

How can I improve my chances of getting approved for a bad credit payday loan?

The most significant ways to improve your chance of being accepted for a bad credit personal loan include the following:

  • Make sure the lender accepts bad credit applicants. Not all payday lenders accept bad credit applicants, so ensure that your chosen lender does before submitting an application.
  • Check the eligibility criteria. Make sure that you meet the lender's eligibility criteria before applying for a loan.
  • Check the minimum income. Do the requirements include a minimum income? Even if the lender in question accepts applicants with bad credit, if your income doesn't meet the criteria, you may be rejected.
  • Don't over apply. Applying for multiple payday loans in a short space of time may see your application rejected.

The features of a payday loan

Here are some of the features, fees and conditions that you can expect when you apply for a payday loan:

  • Online application. You can apply for these products online. The application usually takes a few minutes and applicants should receive a response immediately.
  • Turnaround to receive funds. Turnaround times to receive the loan can vary between 1 hour and 24 hours, but most lenders will at least offer a 1-day turnaround. If the application is submitted by the set cut-off time (which is usually 4pm), then the funds should arrive the next business day.
  • Different loan amounts. Lenders offer various loan amounts that often range between $100 and $2,000. You can also find loans up to $10,000.
  • Term of loan. Loan terms can be as short as 9-12 weeks or as long as 12-24 months. Some lenders allow you to repay the loan early without paying a penalty fee.
  • Repayment. You'll need to repay a set amount at regular intervals (such as fortnightly). Depending on the loan, the repayments may be based on your pay frequency and aren't as flexible as some other credit products. The repayments can be directly debited from your account to the lender to avoid missing any payments. Some lenders allow you to repay the loan early without penalty, but this will vary between providers.
  • Fees. Payday lenders operate under strict Australian Securities and Investments Commission (ASIC) guidelines, so you will be charged set fees according to this. These fees include the establishment and monthly fees, which are usually a set percentage of the amount you're borrowing. You can learn more about these costs below.

How much does a payday loan cost?

Payday lenders set their own fees, but they're restricted as to how much they can charge. ASIC rules mean payday lenders cannot charge you more than the following:

  • Loans under $2,000. Lenders cannot charge more than a 20% establishment fee and a 4% monthly fee as well as default fees and enforcement expenses.
  • Loans from $2,001 to $5,000. Lenders cannot charge more than a one-off establishment fee of $400 and a maximum annual interest rate of 48%, which includes all other fees and charges.
  • Loans over $5,000 with terms over 2 years. Lenders cannot charge an interest rate over 48% p.a. that includes all fees and charges.

Before applying for a loan, make sure to read through the specific fees for each product and compare options before making a decision.

Why do bad credit payday loans cost so much?

Generally, bad credit payday loans are the most expensive form of credit because they are the easiest to obtain and pose the most risk to lenders. Borrowers with bad credit are higher risks to lenders because they have a history of being unable (or unwilling) to repay credit cards, loans or bills on time. They may also have applied for multiple forms of credit and been denied, which can reflect badly on their credit score.

The price people pay for the "convenience" of accessing finance quickly regardless of their credit history arguably reflects the cost of payday loans. However, many people contest that payday lenders prey on the financially vulnerable with these high costs. This is because it can lead to a spiral of debt, which ultimately may benefit payday lenders.

That being said, payday lenders are all subject to responsible lending practices as enforced by ASIC. They are also heavily regulated and limited as to how much they can charge customers.

Can I get a low interest bad credit payday loan?

Unfortunately, it is unlikely that you will find a bad credit payday loan that offers a low interest rate. Because of the additional risk posed by having a low credit score, most payday lenders will charge the maximum costs outlined above.

However, you may be able to find some lenders that are willing to offer a lower interest rate on a secured bad credit loan. Using an asset as collateral on your loan mitigates the risk to the lender – as long as the asset is of equal or greater value than the cost of the loan. Please be aware that this can be risky though as your lender will have the right to repossess your property if you default on the loan.

What can bad credit payday loans be used for?

While payday loans can technically be used for any worthwhile purchase, a bad credit payday loan is something that ought to be used for a financial emergency when no other forms of credit are available to you. This is because payday loans of any sort are not long-term financial solutions and should not be used for unnecessary purchases because of the high fees and interest rates attached.

The following are some examples of financial emergencies:

  • Medical bills
  • Vet bills
  • Car repairs
  • Unavoidable home repairs/purchases

It's worth noting that if you are struggling financially before applying for a payday loan, you may want to check out if you can qualify for any lower-cost alternatives.

How to compare payday lenders

There are many payday lenders available, so it's important to compare options to ensure that the loan is right for you. Here are some of the factors that you should consider when weighing up your options:

  • Compare lenders. Lenders will have the right to access your bank account details, so you need to be sure they are trustworthy and have a good reputation. When researching options, read through the policies and loan terms, contact the lender's customer service team to ask any questions before applying and read through reviews and testimonials online.
  • Confirm the fees and interest rates. Payday loans charge higher fees than most other personal loans. Compare the establishment and monthly fees charged by different lenders. You can locate these fees in the comparison tables and product reviews on Finder as well as on the lender's website. You should make sure you can afford these fees before applying.
  • Loan extensions and redraws. Some loan companies can extend the term of the loan up to 90 days. You will be charged extra fees associated with this, so it should be avoided if possible. Before you sign anything, you should ask what the terms and conditions are if you're unable to pay back the loan on time. This includes any additional fees that will be charged if you can't pay the loan back within the original loan term.

Pros and cons of payday loans

  • Online application and turnaround time. You can apply online and receive a response shortly after submitting an application. If approved, you can receive the funds within 24 hours.
  • Fixed rates and charges. The costs are fixed and won't change throughout the loan repayment term.
  • Bad credit history. Most credit issuers won't approve people with a bad credit history, so this is an option if you have negative listings on your credit report or a poor credit score. Other eligibility requirements still apply and if you are unable to make timely repayments, a payday loan could further hurt your credit history.
  • Higher fees. The fees are higher than for most other personal loans, which is why it's important to pay the loan off in full during the repayment term.
  • Payday loans are not a long-term solution. Payday loans are not a quick fix or long-term solution. It won't help minimise overall long-term debt and you should seek help from a financial adviser if you're struggling financially.
  • Dishonest lenders. There are some fraudulent lenders operating online, so you need to do your research and ensure you're not applying for a loan with a dishonest lender before applying.

What Happens If I Miss A Payment?

If you miss a payment on a payday loan, you risk running into a number of issues and extra costs. For this reason, it is essential that if you think you are going to be unable to meet a payment by the due date, you contact your lender as soon as possible.

The lender may be able to make an arrangement with you to reschedule your payment free of charge. If you are facing financial hardship, it is important that you contact your lender since it will likely have measures in place to help you with a new payment plan or help you reduce costs.

If you do not contact your lender and default on a repayment, the following issues can arise:

  • Bank charges. If an automatic direct debit is not able to leave your account, your bank can charge you for missing the payment. This is usually a charge of around $5-$10 per missed payment, depending on your bank.
  • Overdraft fees. If you have an agreed overdraft with your bank, your payment will be taken from your overdraft when you have insufficient funds. Your bank will then charge you fees or interest on this borrowed money as per your overdraft agreement.
  • Dishonour fees. These are fees charged by the payday lender when there are insufficient funds in your account for the automatic direct debit to be processed. How much this will be will depend entirely on your lender, but there are no imposed limits on what lenders can charge with these fees. They may be $15 per missed payment, but some may be as high as $55.
  • Late payment fees. This is the fee charged for making a late payment. Payday lenders may charge either dishonour fees or late fees, or both if they should choose to. There is also no limit as to what lenders can charge for these fees.
  • Collection calls. If you miss a payment and fail to inform your lender, they may call you chasing the repayments.
  • Having your property repossessed. This can only happen if you have a secured payday loan and you fail to repay. If your loan is unsecured, as most payday loans are, your lender has no right to repossess your property.
  • Damaged credit rating. If you miss repayments, it can damage your credit score. And if you already have a poor credit score, this can be even more of a setback.
  • Possible legal action. If you continue to miss your repayments, your lender could potentially take legal action against you.

How long does it take to get a bad credit payday loan?

Because their eligibility criteria are more relaxed, the processing time for payday loans is usually much quicker than most standard personal loans. This makes payday loans generally very fast forms of funding.

Most applications for payday loans can also be done entirely online, and so only take a few minutes to complete. Modern lenders are also able to connect to your Internet banking to save you the time of uploading documents.

Funding for some payday lenders can take as little as an hour, and others can take a little longer, usually one to three days.

How to apply for a payday loan

To apply for a payday loan, simply click "Go to site" to visit the lender's website and submit an online application. Eligibility criteria on these loans will vary from lender to lender. However, most lenders will require you to meet the following criteria:

  • Be 18 years of age or over
  • Be an Australian citizen/permanent resident
  • Be receiving a regular income (If you receive Centrelink payments, they will usually need to make up less than 50% of your received income. However, this may not always be the case.)

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40 Responses

    Default Gravatar
    PamMarch 23, 2018

    I have loan with Cigno and as I need other small loan of $500. When I fill in applications to other Lenders and was declined then transferred to Cigno. Why. As when I still have active loan with Cigno I cannot be approved. Is there other lenders similar to what Cigno does

      Avatarfinder Customer Care
      MayMarch 26, 2018Staff

      Hi Pam,

      Thanks for your inquiry.

      Different lenders have different lending criteria and requirements that you need to meet. If you’ve been declined you may have not met the criteria. Nevertheless, if you’re a bad credit and are looking for a payday/short-term loan, please refer to the loans listed above. Be sure to check the details of the loan and review the eligibility requirements before you apply.

      Cheers,
      May

    Default Gravatar
    DaleJanuary 31, 2018

    Hi need a loan of $1000 but go bad bad credit I get centrenlink I can paid back $50 fornighty help me

      Default Gravatar
      JoelFebruary 7, 2018

      Hi Dale,

      Thanks for leaving a question on finder.

      I hope you get through these difficult times. While I am unsure if you’ll get approved for a loan or not, please check this page https://www.finder.com.au/loans-for-people-on-centrelink-payments where you can get a guide on how Centrelink recipients get a loan even on bad credit. There are lenders listed in the table on that page with green checks which you may like to contact to discuss your options and chances of approval.

      I hope this helps.

    Default Gravatar
    TracyJanuary 23, 2018

    I need a $1000 bad credit loan approved and money paid with in an hour on centrelink repayments apto $100 a week

      Default Gravatar
      ArnoldJanuary 23, 2018

      Hi Tracy,

      Thanks for your inquiry

      While having a low/poor credit score may affect your chances of getting approved for a loan, if you are able to show that you have the ability to repay, there may be a lender that can work with you. Please note though, that with bad credit, you may end up paying a higher interest than other borrowers.

      There are bad credit payday loans above that you can consider applying for. You can compare your options on the table displaying the available lenders based on the loan amount, terms of the loan, cost, and monthly repayments. Our guide page also has information on how you can improve your chances of getting approved for a bad credit payday loan which may help you with your future loan applications.

      You may also compare your Centrelink loan options.

      You may click the name of the lender or the “More info” link to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Hope this information helps

      Cheers,
      Arnold

    Default Gravatar
    TcookDecember 11, 2017

    I need to borrow a large amount but I only have centerlink and I have bad credit.

      Avatarfinder Customer Care
      HaroldDecember 11, 2017Staff

      Hi Tcook,

      Thank you for your inquiry.

      Your approval will depend on the lender you apply with and also the type of loan you apply for. You may consider your options from the following pages:

      Centrelink loan options
      Bad Credit Personal Loans

      Each page has a comparison table you can use to see which lender suits you.

      Please click the name of the lender or the “More info” link to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      I hope this information has helped.

      Cheers,
      Harold

    Default Gravatar
    Deano_ingraAugust 24, 2017

    I would like to loan $1000 so I can pay part or all of a loan I received from Cigno loans.

      Avatarfinder Customer Care
      RenchAugust 24, 2017Staff

      Hi Dean,

      Thanks for reaching out to us. If you are borrowing money to pay off other loans, you should first contact your current credit provider and speak to them about your situation.

      It’s important to know that lenders will also ask if you currently have any short term credit contracts.

      It might be good to contact a free credit support counselor to discuss your situation.

      I hope this helps.

      Cheers,
      Rench

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