Get an unsecured bad credit personal loan no matter what your credit rating.
Bad credit can affect anyone. Default on a repayment today and you might be paying for it for the next five years. Luckily there are personal loan options available for people who have negative marks on their credit file and they don't involve you risking your car or the equity you hold in your house to access them.
Unsecured bad credit loans give you a loan option with flexible eligibility criteria. There are a few different types of unsecured credit loans, so be sure to compare your options and find the right one for your needs.
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
Unsecured loans you can apply for.
Which of these lenders will actually accept bad credit borrowers? The lenders below will.
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.
What exactly is an unsecured bad credit loan?
An unsecured bad credit loan is a personal loan which has more flexible requirements than the big, major banks and lenders. These loans are unsecured and as such do not require you to use an asset such as a car or property as collateral. These loans can sometimes be a viable option for people who have negative listings on their credit file but still need access to credit. Due to the higher risk to the lender, you may have a higher interest rate applied to your loan.
Do you have bad credit? Here's how to actually get a loan
- Find a lender you're eligible for using the table above.
- Check the loan meets your requirements when it comes to the loan amount, fees and turnaround time.
- Click the "Go to Site" button to go through to the lender's site and review your options for a loan
- Apply using the secure online form on the lender's site if you're eligible for the loan and want to apply after reviewing the loan details. You can usually see if you're approved in a few minutes and receive your funds on the same or next business day.
What types of unsecured bad credit loans are available?
There are a few different types of unsecured bad credit loans that you may want to consider:
- Payday loans.
These loans are designed to cover you until you in the short term. You can borrow usually borrow between $100 and $2,000 and repay it in terms of between 16 days and a few months. Loans and unsecured and eligibility criteria is flexible, so if you have bad credit it usually isn't a problem.
- Debt consolidation loans.
These types of loans are designed to help people with multiple debts combine them together to save on interest and better manage their repayments. If you have bad credit you still might have debt consolidation options available to you.
- Line of credit.
A line of credit is a loan which allows you to withdraw up to and including a certain amount of money. These loans give you access to immediate cash and you and draw on them as and when you need.
- Cash advance.
A cash advance is when you receive cash through your credit card using an ATM withdrawal or at a branch, but have also come to be known as payday loans. Keep in mind that if you have bad credit you will generally not be approved for a credit card, so if you're looking for a credit card cash advance you will need to already hold a card. For a payday loan cash advance, you can search for a payday lender with a physical location.
More information: Debt consolidation help
Taking out an unsecured bad credit loan? Here's what to consider
Before applying for an unsecured bad credit loan, you should take the following into consideration:
- What fees are involved?
Lenders are restricted as to what fees they can charge you. For loans up to $2,000 you can be charged a 20% establishment fee and a 4% monthly fee. For loans between $2,001 and $5,000 lenders can charge a one-off fee of $400 and a maximum annual interest rate of 48% (inclusive of all fees and charges). For loans over $5,000 lenders cannot charge more than 48% which includes all interest and fees.
- What is the interest rate?
For loans of less than $2,000, no interest is charged. Fees are charged on these loans represented as a percentage. That being said, these fees can be considered costly. Bad credit lenders are taking on a risk lending to you, and without an asset guaranteeing the loan the costs, whether in the form of fees or interest, are going to be higher.
- Who is the lender?
It's also important to check the reputation of the lender you are borrowing from. The internet has made it easy for dodgy lenders to appear reputable, so make sure you read all the terms and conditions and compare your options before you apply. You can also read online customer reviews of lenders to see other people's borrowing experiences. Never submit any payment to a company online to receive a loan.
A bad credit loan for Darren
Two years ago, Darren split with his wife and fell into a cycle of debt as they went through an expensive divorce and split their assets. He had a few payment defaults listed on his credit file and now finds himself unable to get a loan.
A few days ago, Darren received the bill for a hospital stay he had. The bill was larger than expected and he doesn't have the money to cover it. He reviews his budget and sees that while he can't cover the cost upfront, he would be able to afford a short-term loan. That's when he considers his options for an unsecured bad credit loan.
The features you can expect with unsecured bad credit loans
These loans offer people with bad credit a secure option through which they can access money. These loans also offer the following features:
- Apply conveniently online
Lenders who offer unsecured bad credit loans generally have online application forms and online approval systems available, making it easy for you to apply.
- Choose from a range of options
These type of loans are a viable option if you need to consolidate your debts or if you have negative marks on your credit file.
- Have fast access to your funds
You can normally receive the funds into your account on the same day you apply. At the latest, lenders can have your approved loan to you on the next business day.
- Repay according to when you get paid
Lenders will usually structure your repayments according to your pay schedule. Depending on the lender, you will usually have the repayment amount direct debited from your account on the repayment date – no need to remember to send your funds across.
These type of loans have flexible lending criteria when it comes to your financial circumstances. Generally, you will need to be over the age of 18 and be able to demonstrate a regular income. You will also be required to list any other assets and debts you have and some lenders may require you to be employed, although you can be considered for a loan if you receive Centrelink payments as income.
Unsecured bad credit lenders look more at your current financial situation rather than defaults or negative listings on your credit file which may have happened a while ago.
How to apply
To apply for an unsecured bad credit loan you can follow any of the lender's links on this page to their secure online application form. You will need to provide certain personal and financial details. Most lenders offer a quick turnaround for approval, so you won't need to wait too long to see if you are eligible for the loan.
Questions you might need to be answered before applying
What if I'm on Centrelink, can I still apply?
If you have bad credit and are currently receiving Centrelink payments you can still get access to funds. However, there are tighter restrictions on how much you can borrow and under what circumstances. If you receive Newstart there are very little options available to you, but other types of support payments could be included as serviceable income. For more information, check out our guide on how to get a loan if you are on Centrelink.
I have numerous defaults on my file. What are my options?
Having defaults and missed/late payments on your credit file can be a major hindrance to your application if you are applying for credit products with major banks and lenders. However, the range of credit brands compared on this page look at your situation as it stands over the past three months, not the past seven years. Compare your options before applying to ensure you have the best chance of getting approved.
Should I apply for a no credit check loan?
If you have bad credit you may be considering whether a no credit check loan is a good option. It is something to consider, but keep in mind there are bad credit lenders available. Because no credit check lenders cannot verify your credit history, more emphasis is put on other aspects of your application, such as your employment or income. Consider your personal credit history and whether a no credit check loan is necessary.