Don't let your credit rating hold you back. Find a bad credit personal loan that's right for you.
Bad credit is tough to shake. Having negative listings on your credit file credit can seriously hinder your ability to access loans, but if you're on the "credit fringe" there are still a variety of loan options you can consider. Find out what's available to you in this guide.
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 weeks
- Turnaround Time: 30 Minutes - conditions apply
- Total Cost of Borrowing $100: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks - Must be employed
Lenders that offer personal loans to bad credit borrowers
The finder.com.au bad credit personal loan comparison
Compare the features of the personal loans below.
| Personal Loan | Features |
|---|---|
| You could borrow up to $2,000 without a credit check. | |
| Nimble market their "smart little loans" that let you borrow up to $2,000. | |
| Borrow up to $2,000 with the personal loans from Cash Train. | |
| Ferratum offer personal loans for up to $1,000. |
Warning about Borrowing
Do 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 can I be approved for a loan with bad credit?
There is no trick to being approved. However, there are a few things you can do to make sure you get the best chance.
- Don't make too many credit applications at once.
This is a red flag to lenders and can hinder your chances at future credit approvals. If you have done this, try and wait to make any future applications.
- Check your credit score to see where you stand.Â
By checking your credit score you can get an idea of your credit position and where you fall in the credit-active population.
- Use a personal loan calculator.Â
This will ensure you don't apply for a loan you can't afford. Lenders, when reviewing your application, will only approve your loan if you can afford the repayments.
Calculate your personal loan repayments
What are your personal loan options with bad credit?
There are various personal loan options for people with a bad credit rating.
- Secured personal loans.
If you can provide collateral, such as a car, equity in your home or other high-value asset, a lender may be more willing to overlook a few negative marks on your credit file. - Guarantor personal loans.
Do you have a partner, close friend or relative who is willing to guarantee the loan for you? You may be able to qualify for a guarantor personal loan. There are certain bad credit lenders who offer tailored products for borrowers who you may want to consider. - Short term loans.
Are you only looking to borrow up to $2,000? Then you can consider a short-term loan from a payday lender. These lenders are less focused on your credit history and more focused on your current financial position and ability to repay the loan. - Large amount bad credit loans.
If you need to borrow more than $2,000 and have bad credit, there are lenders offering loans up to $5,000. You can also find a few lenders that offer loans as much as $10,000 to those with adverse credit history.
How much do bad credit loans cost?
This depends on the lender you apply with and also the type of loan you apply for. Lenders cannot charge you more than the following, but remember to always compare your options, because some lenders charge less:
Loans under $2,000 with terms between 16 days and one year
- Establishment fee of 20% of the principal
- Monthly fee of 4%
Loans between $2,001 and $5,000 with terms between 16 days and two years
- Establishment fee of $400
- A maximum interest rate of 48%, including all other fees and charges
Loans over $5,000 with terms between 16 days and two years
- All fees and charges must not be more than 48% p.a.
How do I know if I have bad credit?
Although the definition of "bad credit" differs between each lender, bankruptcy, defaults and part nine debt agreements are generally all red flags to lenders and generally will put you in the bad credit category.
However, your credit file also holds other important financial information which may look bad to prospective lenders. This includes late bill payments, late loan repayments, multiple credit applications or exceeding credit card limits. Excessive credit applications in a short space of time can also put you in the bad credit category, if only for a short space of time. There are varying levels of how bad your credit file can look to lenders, so be sure to check and compare the application criteria for personal loans to see if you may be eligible.
Talking to lenders is also a good idea – you may be surprised at how flexible they can be.
Longer term options
Bad credit doesn't have to stop you from getting a loan – compare your options and find out what's still available to you.
So I need a loan in the amount of 3400 dollars to pay off all my debt and I’m self employed and I’ve applied to many but all declined.
Hi JP,
You can compare your bad credit loan options on the page above as well as loans up to $5,000 on this page. Keep in mind that every time you apply for a loan it is listed on your credit file and too many rejected applications can be a bad sign to lenders. You may want to consider waiting before you apply for another one to give yourself a better chance of being approved.
Hope this helps,
Elizabeth
Hi
I was wondering where can I get a small $200 loan.
I have no credit rating,and I am just out of bankruptcy.
Regards Wendy
Hi Wendy,
You can find lenders that will consider discharged bankrupt for loans on this page.
I hope this helps,
Elizabeth
Hi there
My credit rating isn’t to bad I have no defaults but I have applied for a few loans and declined them because I wasn’t happy with the interest rate then I shopped around but had no idea until now that credit enquires had a negative affect on my credit score so now my credit rating is looked at as bad and I wanted a loan to consolidate my credit card debt and I’ve since been declined by Citibank but approved with another lender with a really high interest rate which I declined, so can you tell me who will actually help me with a loan please
Hi Damien,
Unfortunately I can’t recommend any specific lenders to you. However, I can send you some general information. You may want to order a free copy of your credit file to find out what kind of situation you are really in, this will give you a good idea of your situation when you’re applying for loans. There are also larger and long-term personal loans available from some lenders, for instance, loans up to $5,000 and loans up to $10,000.
I hope this will help,
Elizabeth
Hi there mu credit file is shocking woth 2 defaults currently getting paid also i have had lots of short term loans eithbmany lenders at the same time have paid always paid them off a few missed payments but always paid them off o earn roughly after tax 1500-2000 per week amd have had the same job for 8 years im looking at getting a personal loan for $20000 that i will pay off $1000 a week wich im used to paying with the payday loans and i have a freind that will go guarantor he owns his own home and also earns good money what do you think my chances would be and also which companys would you recommend if you think i have a chance or should i see a broker?? Thank you in advance
Hi Mr B,
Unfortunately we currently have no bad credit lenders on the site who are able to offer loan amounts of that size. The largest loan amounts are on this page but the maximum available is only $10,000. If you’re thinking of applying with a guarantor you can consider this bad credit lender, but only smaller loan amounts are on offer.
You may want to get in touch with a broker or call the free financial counselling hotline on 1800 007 007.
I hope this has helped.
Thanks,
Elizabeth
My credit rating is shocking.i have been working for a couple of years and am on centerlink benefits i am a single dad that helped out some bad people and made some bad choices when i was younger but since then have never had the oppertunity or been given a second chance to prove myself is thete any lenders out there who would consider taking me on i wont let u down
Hi Troy,
Thanks for your question and sorry to hear about your situation.
As a financial comparison service we don’t offer the loans ourselves, but I can provide you with some information. If you’re considering any of the lenders on the page above they will look at more than just your credit rating when considering you for a loan. They will look at your income, your employment, your general financial circumstances etc. If you are concerned about your credit rating you can consider a no credit check loan.
I hope this has helped.
Thanks,
Elizabeth
I have made bad choices and really got myself in a rut. I have several payday loans and can’t keep up? It’s sending me broke. Is there a personal loan out there to recover all so I only have one payment monthly.? Many thanks
Hi Tamara,
Thanks for your question.
You can compare debt consolidation personal loans on this page, and if you’re looking for a bad credit debt consolidation option, you can take a look at our guide on this page.
I hope this information will be of use.
Thanks,
Elizabeth
Hi i have a credit score of 223 which isn’t great but haven’t got any defaults on my credit file. Am eligible for a personal loan through the bank. I have 20 enquiries on my credit file but no defaults. How long does credit score take to increase so lenders consider lending me money
Hi Sam,
Thanks for your question.
Banks look at a variety of factors when considering you for a loan, not just your credit score. They look at your income, your current open credit accounts, debts, expenses, etc. Your credit score will play a part in their decision but is not they only thing they use to base their approval on. There’s no real time period for a score to increase, but you can learn more about it on this page. In terms of being eligible for a loan, you might want to get in touch with the bank you have in mind and discuss your eligibility before applying to reduce the risk of adding another enquiry onto your file.
I hope this has helped.
Thanks,
Elizabeth
Hi,
I’m wondering if there are any lenders which provide unsecured personal loans of $7000? I have one paid default of $265 from over 4 years ago but have recently been declined from my bank due to too many credit enquiries on my file?
Thanks.
Hi Dani,
Thanks for your question.
As a general rule of thumb, you should apply for a credit product once every three to six months.
Lenders consider a borrower to be risky if they see too many inquiries on your credit file.
If you’d like to compare unsecured personal loans, please see this page.
Cheers,
Shirley
hi
Which lender is for bad credit for debt consolidation, i want to combine all debts into one
Thank you
Hi Lig,
Thanks for your question.
Please see this page regarding bad credit debt consolidation.
Cheers,
Shirley
I’m looking to get a personal loan of about $5,000. I have poor credit rating would my chances be higher to get a loan if I had a guarantor.
Hi Shelby,
Thanks for your question.
Yes the chances of your application would be higher with guarantor. However, please note that all the lenders on this page still consider applications with bad credit.
Cheers,
Shirley