Credit scores and credit history help lenders determine whether someone will be able to responsibly manage a loan. Negative listings, such as late payments or default accounts, can indicate financial challenges that increase the risk of approving someone's application for a personal loan.
As a result, there are only limited options available for people who have a bad credit history. These options may also have higher fees, interest rates or other restrictions when compared to other personal loans. This makes it important to carefully compare the options available before deciding if this type of loan is suitable.
Are you struggling financially?
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ 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.
Personal loan options for people with bad credit history
If someone with bad credit history wants to apply for a personal loan, there are a few different options they can consider. This includes:
- Secured personal loans
This type of loan requires financial collateral – such as a home, car or other valuable asset – to "secure" the loan. This means that if repayments are not made on time or if other terms of the loan are not met, the lender may claim the asset as a form of compensation. - Guarantor personal loans
Guarantor personal loans require someone else to financially guarantee that the loan will be repaid. For example, a parent, spouse or other relative. This person shares responsibility for the loan and may be required to repay it if the terms are not met. - Short term loans
A short-term loan from a payday lender offers up to $2,000, with repayment terms typically between 2–12 months. The eligibility requirements for these loans tend to focus on a person's current financial circumstances and their ability to repay the loan within the set timeframe. - Large amount bad credit loans
For people who want to borrow more than $2,000 and have bad credit history, there are also lenders offering loans of up to $5,000. There are also a few lenders that offer loans as large as $10,000 to those with bad credit history.
How much do bad credit loans cost?
The costs can vary depending on factors including the lender, the type of loan and the amount borrowed. However, lenders must not charge more than the following amounts:
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.
Lenders that offer personal loans to bad credit borrowers
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: 9-12 weeks
- Turnaround Time: 30 minutes - conditions apply
- Fees: 20% of loan amount + 4% of loan amount each month
- Income requirement: 50%+ of income cannot be from Centrelink
- Bad credit borrowers OK
- Quick & easy Approval
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,000
Go to site
More info
From
48 %
p.a.
variable rate
From
66.04 %
p.a.
comparison rate
- Borrow up to $4,581.80
- Loan term up to 2 years
- Instant online decision
100% confidential application
Swoosh Finance
Swoosh Finance offer fast, reliable, and hassle-free secured loans up to $4,581.80 for when you are in need of money.
- Loan amount: $4,581.80
- Loan term: 12-24 months
- Turnaround time: Next business day
- Fees: $418.20 + 48% p.a. of borrowed amount
Things to consider before applying for a loan with bad credit history
As with any loan, approval is determined based on a range of eligibility factors and lending criteria. So, before applying, it is important to check the details and requirements of a loan to decide if it is suitable. Some other actions to consider include:
- Checking your credit score to see where you stand
By checking your credit score you can get an idea of your credit position and any details that may affect the chances of loan approval.
- Discussing your options with a qualified professional
If you're struggling financially and need help, the Financial Counsellors hotline (1800 007 007) offers free support and advice from qualified professionals. This can help you make decisions that fit with your current circumstances.
- Not making too many credit applications at once
Applying for more than one loan at a time (or over a short amount of time) is a red flag to lenders and can hinder the chances of loan approval now and in the future. If applying for loans, apply for one and wait for a response before taking further action.
- Using 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.
Calculate your personal loan repayments
How do I know if I have a bad credit history?
Although the definition of "bad credit" differs between each lender, bankruptcy, defaults and Part 9 debt agreements are all red flags to lenders and generally will place you in the bad credit history 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 exceeded credit card limits. 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.
Picture: Shutterstock
I have a 300 credit score and 2 defaults needing a loan
Hi Michell,
Thank you for reaching out to finder.
We are on the correct page for you to make a comparison on a table of providers in taking out a loan. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’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. Hope this helps!
Cheers,
Reggie
Im wanting a provider who will help with a 15000 car loan with a poor credit raiting
Hi Teneal,
Thank you for your inquiry.
Though I can’t recommend one specific lender to you as we are a comparison website, you may be able to compare some lenders that offer car loans with bad credit on this page. Please review the criteria and get in touch with the lender directly for the possible options available to you.
Hope this helps.
Cheers,
May
I have 2 defaults on my name from a stuiped furniture company, I gave back there furniture in excellent condition, and the defaulted me 2 times of $1400 I’m still paying them off, and I have a variable impact from Telstra on my name.
I’ve been approved for a $600 loan and almost done paying it off, I am I need of a $2000 loan where can I get one? Also I’m working and on single parenting
Hi Rebecca,
Thanks for contacting finder, a comparison website and general information service.
You may want to check this page for a list of loan options for you.
I hope it helps.
Best regards,
Judith
Hi i currntly have car on fianance that i have been paying for the past year and have not missed or made a late payment a d now i a inneed of a $5000 loan for repairs but my credit rating is not so good i have bee employed for over 6 years fulltime is there any lenders that will give the amount i am after thanxs
Hi John,
Thanks for your question.
For your borrowing needs, you may want to consider the lenders on this page. Please do check the eligibility criteria of the loan product you are interested in before submitting an application.
Cheers,
Anndy
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