We take you through your options even when you feel like your personal loan choices are running low.
Before the Global Financial Crisis (GFC), guaranteed personal loans were more readily available. Now, lenders take much more consideration with risk and have more stringent eligibility criteria, meaning guaranteed personal loans are no longer available. However, you still might be eligible for a loan.
Find out more about how to be approved 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
A selection of loans you can consider
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.
"Am I eligible for a loan?"
Eligibility criteria differs among lenders, but you can find lenders willing to accept applications from borrowers in a variety of situations.
- If you have bad credit. There is a range of bad credit lenders that will consider you for a loan. You can find brands who do not conduct credit checks, but you will unless your credit is particularly bad you generally don't need this.
- If you receive Centrelink payments. There are lenders who will consider you for a loan if you receive Centrelink payments as income, although there are certain restrictions regarding this. You can find out more and compare them here.
- If you're unemployed. Lenders do consider unemployed applicants for loans. As long as you have the ability to repay you may be considered.
- If you're a current or discharged bankrupt or under a Part 9 Debt Agreement. Even if you are currently bankrupt or have been bankrupt in the past, including under a debt agreement, you may be able to find a lender who will consider you.
Help! I've been offered a guaranteed loan!
If a lender has offered you a personal loan with guaranteed approval, this is likely a scam. No personal loans are "guaranteed" and lenders that promise you will be approved are often looking to charge you excessive interest and fees or get you to sign a contract with unfair or illegal terms.
You can check if a lender is legitimate by verifying its listed with ASIC or seeing if they appear on ASIC's "do not deal with" list. You should also call its publically listed phone number to ensure the lender is legitimate.
If you think you're being scammed, stop dealing with the lender immediately and report the scam to ASIC.
What types of personal loans can I apply for?
Even though guaranteed personal loans are no longer available, there are a few different types of loans which you can opt for if you are after a personal loan where you have a chance of approval.
Short term loans
A payday loan is a small loan that is only for a short period of time. The loan amount will generally be between $100 and $2,000 and the loan terms will be between 16 days and one year. These type of loans are referred to as 'payday loans' because the loan amount and terms are based on your income and pay frequency, making them less of a risk to the lender.
These type of loans also have set rates and a cap on the amount of fees you are allowed to be charged. The fees include an establishment fee of 20% of the loan amount and monthly account fees of 4% of the loan amount. You could also be charged government fees and default fees.
Most payday lenders will do a check on your credit history but look more at your current financial situation rather than negative marks. Use the table above to compare payday loans.
Secured loans involve you borrowing from a lender and using a large asset, such as a car, a boat or housing equity as a guaranteed security in case you default on the loan. These loans usually offer lower fees and rates than unsecured personal loans because the loan if less of a risk to the lender, but because these loans are 'somewhat guaranteed' the rates may be higher than normal. These loans can be offered as variable or fixed rate options and usually for a period of one to five years.
Unsecured bad credit personal loans are an option for people with bad credit who do not want to risk a guaranteed asset when they take out a loan. You might also choose to take out an unsecured loan if you want to use the loan to finance something other than a large asset, such as to pay off bills or to put towards home repairs, or even a holiday.
How you can compare your loan options
When comparing personal loans, it's guaranteed to keep the following things in mind:
- Fees. The lender should set out all the fees you will be charged before you settle on the loan. This will help you get a better idea of the true cost or the loan.
- Rates. You could expect rates to be higher with bad credit personal loans, although it is still important to compare these rates to make sure you are guaranteed to get the best deal.
- The lender. The lender should also come into consideration. You should look at how transparent the lender is with its information regarding fees and charges. You can also read online customer reviews of the lender.
Matt gets a guarantor
Matt is in a bit of a situation. He works part-time and also studies. He has so far been able to juggle his car repayments, credit card bills and day-to-day living expenses off his $20,000 p.a. income.
He does not, however, have the ready money to cover the cost of getting his car fixed. He needs his car to make it to a gig he's playing at the following weekend. His low income means that he does not meet the minimum requirements for a loan, but luckily, his parents offer to go guarantor on a loan for him. This means that he is able to take out a personal loan with a bank despite him not meeting the minimum income requirements.
Read to apply? Here's how
To apply for a personal loan you will need to be over the age of 18 and be a permanent Australian resident or citizen. You can click through to an application from anywhere on finder.com.au using the "Go to Site" button. The document requirements differ between brands, but you will generally need to supply some form of identification, your contact details, proof of a regular income/salary and details regarding your assets, debts and credit accounts. Remember to compare a range of options before you apply.
*Guaranteed personal loans are subject to individual lender's credit criteria
The personal loan offers compared on this page are chosen from a range of personal loans finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing personal loans.