A bad credit payday loan could get you out of a sticky financial situation without the need to commit to long-term debt.
There are times we all run into some unexpected expenses, from car repairs to dental work and just about anything in between. When you need a little extra cash to get you through to your next payday, you have the convenient option of taking out a bad credit cash loan.
A selection of bad credit payday loans
If you're stuck with bad credit, compare the loans below to see what offer you may be eligible for:
- Bad credit applicants 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 okay
- Quick and easy approval
- No credit checks
- Borrow up to $4,600
- Loan term up to 2 years.
- Instant online decision
100% confidential application
Swoosh Finance offers fast, reliable and hassle-free secured loans of up to $4,600 for when you're in need of money.
- Loan amount: $4,600
- Loan term: 12-24 months
- Turnaround time: Next business day
- Fees: $400 + 48% APR of borrowed amount
Payday loan comparison
- Swoosh Finance Loan: Borrow up to $4,600 with the short term loan from Swoosh.
- Sunshine Short-Term Loan: You could borrow up to $2,000 without a credit check.
- Nimble Short Term Loan: Apply online for up to $5,000 with the Nimble flexible loan.
- Cash Train Loan: Cash Train offer a loan up to $2,000 for bad credit borrowers.
- Ferratum Cash Loan: Get a loan for up to $1,900 – without a credit check.
Can I actually get a payday loan with bad credit?
Payday lenders operate with different lending criteria from other institutions, such as major banks. This is the primary reason they can offer loans to borrowers with bad marks on their credit files. Payday lenders will consider your employment situation, how much you earn, whether you are on Centrelink and the last 90 days of your bank statements when seeing if you're eligible for a loan.
If your credit is exceptionally bad, but you still have a genuine income, a no credit check payday loan may be something to consider.
Am I eligible for a loan?
The requirements to be eligible for a payday loan vary from each institution. You usually need to meet the following criteria:
- An Australian citizen or permanent resident
- Over 18 years of age
- Receive a regular income, either through employment or Centrelink benefits.
These criteria are only an example of common eligibility requirements. You should check that you meet the eligibility criteria set by the lender before you apply.
What features come with bad credit payday loans?
There are various features that come with short-term bad credit loans:
- Convenient online application. Lenders allow you to apply online and the application process only takes a few minutes. You should hear a response immediately.
- Receive your money quickly. It's standard for payday lenders to offer a one-day turnaround. If your loan is submitted by a cut-off time, usually 4:00pm, then your funds will arrive the next business day.
- Apply for as much as you need. These lenders offer various loan amounts, usually between $100 and $2,000. You can also find loans up to $10,000.
- Know how much you need to pay in set fees. Payday lenders operate under strict Australian Securities and Investments Commission (ASIC) guidelines, so you will be charged set fees according to this.
- Easy repayments. Lenders usually direct debit your repayment from your account automatically, so you don't have to worry about missing payments.
- Repay the loan early. You're usually able to repay the loan early without penalty.
How to find the right payday lender for you
With so many payday loan lenders appearing online, it may be difficult to know where to look first. It’s important that you get the right loan for you, so finder.com.au has found some aspects of payday loans you should consider before making the final decision.
- Research the lenders thoroughly.
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. Look at each website thoroughly and make sure it is easy to find the policies and loan terms. Some online lenders even have a “live chat” tool, where you can discuss your needs and ask any questions. It is also suggested that you read reviews and testimonials.
- Find out what the fees and interest rates are.
High fees and interest rates are the price you will pay in exchange for efficiency and fast access to funds. According to the ASIC, lenders are only able to charge up to 24% of the principal loan amount per month as fees for loans under $2,000.
- What is the turnaround time on getting your funds?
How fast do you need the money? Do you need it within an hour, or do you have a day or two to spare? Most lenders will transfer the money directly into your account within a time frame anywhere from 1 hour to 24 hours (on business days).
- Can you get loan extensions or redraws?
Some loan companies can extend the term of your loan up to 90 days. Of course, there will be extra fees associated with this. Before you sign anything, always ask what happens if you are unable to pay back the loan on time. Make sure to ask about any hidden or extra fees you might incur within the time you have to pay the loan back. You should have a fairly good idea of how quickly you can pay off your loan, so try to avoid any extensions if you can.
Loan for car repairs
Harry was driving when he had a small car crash, colliding with a tree. The bonnet of his car was whomped out of shape and the engine also needed repairs. The total costs were close to $1,000, but he had neither the money nor the credit history to access a loan. He needed the car repaired quickly and so looked at his short-term loan options. Harry was employed full-time in government work and so was approved for a small loan to be repaid over his next two paydays. The loan was in his account on the same day and so he was quickly able to get the car repaired.
The good and the not so good of payday loans
- Quick and easy application process.
Being able to lodge your application online removes the hassle of paperwork and provides a convenient, simple solution to unexpected expenses.
- Quick turnaround time.
Many lenders will have the funds deposited into your bank account within 24 hours.
- Fixed rates and charges.
There are no interest rates on bad credit payday loans. You'll know exactly how much you have to pay back.
- Bad credit history.
Most lenders focus on your current financial status. This is ideal for anyone with a low credit rating.
- Many brands to choose from.
There are many reputable online lenders you can choose from. It’s important that you find the right company to suit you and your needs.
- Higher fees.
The fees are higher than for most other personal loans and may end up costing you more than you can afford.
- Payday loans are not a long-term solution.
If you are having financial difficulty, a payday loan may just be a “quick-fix” short-term solution – it's not going to help minimise your overall long-term debt.
- Dishonest lenders.
Unfortunately, there are fraudulent lenders operating online. It can also be hard to detect dodgy lenders since you cannot simply walk into their store. There is only one way to avoid taking out a loan with a dishonest lender – do some research. Make sure the lender you choose is well-known and reputable.
How can I apply for a payday loan without getting ripped off?
With so many lenders out there to choose from, applying for a bad credit payday loan can be tricky. Use the comparison table on this page to guide your decision-making process. Follow the links to the lenders’ websites for further information on what each lender can do for you.
Make sure you have assessed your own financial situation first to ensure you are certain that you can meet the repayments. The calculator below may help you work out repayments.
This calculator is designed to provide you with an estimate based on the numbers you enter. Your personal details are not taken into account and all calculations are based off the calculation model. This calculator is not intended to be the sole source of your information when making a decision regarding your loan, and this calculator also does not guarantee your eligibility. The calculator works off the following assumptions: fees do not change for the life, your lender will charge a 20% establishment fee and a monthly fee that is 4% of your principal loan amount. You may want to seek advice from a financial professional before signing up to a loan.