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.
|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
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.
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.
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.
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.