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Loans for Bad Credit

A bad credit loan enables consumers with bad credit to apply for loans of up to $25,000 with low-interest rates from 5,5% and flexible repayment terms – instant approval, all credit scores welcome.

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Bad Credit Loans – Guaranteed Approval for Very Bad Credit

If you have a bad credit history & need a loan, you’re in the right place!

You can get a bad credit loan from one of these reliable Australian lenders quickly and easily without having your bad credit stand in the way.

Frequently Asked Questions

How do I get finance with a Bad credit score?

Don’t let a bad credit history keep you from getting a loan; our collection of reputable Australian lenders will consider your loan application and give you the second chance you deserve.

Bad credit loans are not unlike personal loans offered to those with good credit. They offer you anything from $100 to $50,000 with repayment terms ranging from 16 days to 7 years.

The only major difference is that you're likely to have to settle for a significantly higher interest rate and, for larger loans, be required to put up some form of collateral. Further on, we'll lay out the various providers offering bad credit loans but for now, just know that getting a loan with bad credit is possible!

Bad credit loan uses

Bad credit loans can be used for just about anything that a personal loan can. Typically, however, they're not suitable for debt consolidation given their higher cost. You may use a bad credit loan to purchase a car which will usually be used as security.

What is a bad credit score?

A bad credit score refers to a below-average rating according to one of the three Australian credit bureaus. People with bad credit generally either have one or more credit defaults or lack a credit history altogether.


  • Poor 0 - 505
  • Average/Fair 506 - 665
  • Good 666 - 755
  • Very good 756 - 840
  • Excellent 841 - 1200


  • Poor 0 - 549
  • Average/Fair 550 - 624
  • Good 625 - 699
  • Very good 700 - 799
  • Excellent 800 - 1000


  • Poor 0- 299
  • Average/Fair 300 - 499
  • Good 500 - 699
  • Very good 700 - 799
  • Excellent 800 - 1000

Get approved for a Bad credit loan

If you have bad credit, a lender will base its lending decision on two factors; affordability and the availability of security. To increase your chances of approval you should compare various loans and make use of a specialised bad credit lender.

Can I afford a loan?

To determine affordability review your income and expenses to establish what's leftover (and therefore what will be available to honour repayments on your new loan).

Once you've worked out your surplus, you can make use of our online loan calculator to determine how much you can afford to borrow and for how long. It may also help to obtain a copy of your credit report and find out just how bad your bad credit situation really is.

Bad credit loan security

With a bad credit loan, you need to place an asset as security. In this way, if you default on the loan, the lender will have the right to repossess the asset as compensation for the default.

Since the risk for the lender is lower when collateral is available, you'll stand higher chances of approval. You may even be able to secure a lower interest rate. This option is risky, but it can be quite helpful as long as you're able to pay back the loan.

Requirements to apply for a bad credit loan

In order to assess your eligibility as a loan applicant, the lender will check your credit file. Each lender has its own criteria so you may be able to qualify even if your credit file is not completely blemish-free.

You should definitely go over your credit file before you make a loan application. You can request a free credit check once every year from the following credit agencies; Experian or Equifax. You should watch out for errors. If you find any, have them fixed right away.

Since the eligibility requirements of lenders vary, you'll benefit from making use of a loan comparison service or a broker. If you make multiple applications to various providers your credit score will suffer considerably.

Only apply with registered lenders in line with the National Consumer Credit Protection Act and following a responsible lending policy.

To qualify for a bad credit loan you must:

  • Be an Australian citizen or permanent resident
  • Be 18 years of age or older
  • Have a steady stream of income
  • You must have been employed for the full 6 months preceding the application (or 12 months if self-employed)
  • Be able to prove affordability
  • For some loans, you'll need to provide sufficient security

Supporting documents required

  • An acceptable form of ID
  • Proof of income in the form of recent payslips
  • 6-months worth of bank statements
  • Proof of address (a utility bill)
  • Various documents related to your specific form of security

Where can I get a cash loan with bad credit?

Credit union loans

Traditionally, credit unions have been more flexible with regard to credit ratings when compared to banks. They're more likely to look into your individual circumstances and take the time to understand your situation. As profit is not their primary aim, if your application is successful you're probably going to secure a lower interest rate.

Peer-to-peer (P2P) lenders

Peer-to-peer lending platforms are becoming ever more popular. You can visit such a platform online and borrow money from a private person. When you deal with individual lenders, there are no strictly defined eligibility criteria. You can get an online loan and arrange a more flexible repayment term. You'll still have to pay interest and fees so you need to plan the repayment of the loan carefully.

Specialist high-risk lenders

Lenders that specialise in the provision of loans to Australians with bad credit are your best bet when it comes to securing approval with a bad credit history. These lenders know exactly what to look for when determining whether the loan is suitable for your current financial circumstances and have the expertise to ensure a smooth transaction.

Alternative providers and sources

A family member or a friend can help you obtain finance by becoming your co-signer. When you apply for a loan or together with a person who has a good credit history and stable income, your chances of approval will be much higher because you'll be jointly responsible for the repayment of the loan. With the help of a co-signer, you can even secure a loan with a lower interest rate and a flexible repayment structure.

A family member or a friend may also be able to understand your situation and help you out with a loan. The fact that you borrow money from a close person does not mean that you should not adhere to the core principles of this financial practice. You should prepare a short and clear written agreement so that both of you can sign it. It is best to get the money via a bank account transfer.

The affordability loan calculator

If you've checked your current affordability and used a loan calculator to determine your ideal loan amount and term then you're ready to apply! Below you have access to a collection of some of Australia's top bad credit lenders - from banks and credit unions to boutique lenders -you'll certainly find something to meet your needs.

Bad credit loan calculator

The interest rate of a loan will vary based on your credit score and risk profile.
This bad credit loan calculator is for illustration purposes only.
The use of this loan calculator is subject to our terms of use.

List of direct lenders offering Bad credit loans

  1. Jacaranda Finance Bad credit loan

    Jacaranda Finan...

    • Loans up to $15,000
    • Term up to 24 months
    • Interest up to 48%
  2. Cigno Loans Bad credit loan

    Cigno Loans

    • Loans up to $1,000
    • Easy application process
    • Direct payday lenders
  3. Credit24 Bad credit loan


    • Loans up to $10,000
    • Term up to 36 months
    • Interest up to 48%
  4. Safe Financial Bad credit loan

    Safe Financial

    • Loans up to $5,000
    • Term up to 1 year
    • Interest from 8.7%
  5. ANZ Bad credit loan


    • Loans up to $50,000
    • Term up to 7 years
    • Interest from 12.45%
  6. Nifty Bad credit loan


    • Loans up to $5,000
    • Term up to 12 months
    • Interest from 21.24%
  7. State Custodians Bad credit loan

    State Custodian...

    • Loans up to $1,000,000
    • Reliable home loans
    • Better loan deals
  8. Rapid Finance Bad credit loan

    Rapid Finance

    • Loans up to $30,000
    • Term up to 7 years
    • Interest from 12%
  9. Australian Lending Centre Bad credit loan

    Australian Lend...

    • Relieve your debt
    • Tailored loans
    • Speedy applications
  10. Low Income Loans Bad credit loan

    Low Income Loan...

    • Loans up to $5,000
    • Term up to 12 months
    • Interest from 3.99%
  11. Positive Lending Solutions Bad credit loan

    Positive Lendin...

    • The best loan deals
    • Apply online
    • Simple applications
  12. Swift Loans Bad credit loan

    Swift Loans

    • Loans up to $4,500
    • Term up to 52 weeks
    • Interest from 35%
  13. iWant Payday Bad credit loan

    iWant Payday

    • Loans up to $45,000
    • Quick loan response
    • Simple online applications
  14. Personal Loans Now Bad credit loan

    Personal Loans ...

    • Loans up to $5,000
    • Term up to 8 months
    • The loan specialists
  15. Universal Finance Bad credit loan

    Universal Finan...

    • The finance specialists
    • Personal loan brokers
    • Interest from 4.19%
  16. Bad Credit Loans Bad credit loan

    Bad Credit Loan...

    • Gain financial freedom
    • Multiple loan quotes
    • Apply online now
  17. Discovery Credit Bad credit loan

    Discovery Credi...

    • Loans up to $1,000,000
    • Get pre-approved
    • Low doc loans
  18. Loans for People with Bad Credit Bad credit loan

    Loans for Peopl...

    • Get credit reports
    • Online pre-approval
    • Get multiple quotes
  19. Loan Seeker Bad credit loan

    Loan Seeker

    • Loans up to $250,000
    • The loan experts
    • Interest from 5.50%
  20. Teleloans Bad credit loan
  21. Harley Finance Bad credit loan

    Harley Finance

    • Leading finance
    • Bad credit friendly
    • Affordable loans
  22. Personal Finance Australia Bad credit loan
  23. Remedy Finance Bad credit loan

    Remedy Finance

    • Loans up to $50,000
    • Term up to 3 years
    • Fast loan approval
  24. Non Teletrack Payday Loans Bad credit loan

    Non Teletrack P...

    • Loans up to $2,500
  25. Absolute Financial Services Bad credit loan
  26. NuStart Finance Bad credit loan
  27. 1 Hour Loans Bad credit loan
  28. Australia Cash Loan Bad credit loan

    Australia Cash ...

    • Loans up to $2,000
    • Term up to 3 months
    • Interest from 4%
  29. One Way Payday Bad credit loan

    One Way Payday

    • Loans up to $2,000
    • Term up to 12 weeks
    • Quick online loans
  30. Which Way to Pay Bad credit loan

    Which Way to Pa...

    • Loans up to $2,000
    • Term up to 100 days
    • Interest from 48%
  31. OK money Bad credit loan

    OK money

    • Loans up to $2,000
    • Term up to 11 months