If you have once experienced a terrible credit incident, securing personal loans for bad credit Australia through the big banks can be an herculian process. It may be really difficult getting it through. However in this article, I am going to review the top 5 best platforms in Australia that approve personal loans for poor, bad or no credit history borrowers or customers. Read on!
Best personal loans for bad credit Australia 2023
The most popular lenders that approve the fastest and best personal loans for bad credit Australia are City Finance, FinanceOne, Money3 Loans, Australian Lending Centre and Savvy Loan. These loans are 100% online, have flexible repayments and competitive interest rates that work to grants speedy financial solution to customers.
1. City Finance
If you are a poor credit customer and you need to borrow personal loans for bad credit, City Finance, one of the best bad credit lending platform in Australia is a good option for you. Whether it’s a personal emergency, a big purchase you’d like to pay off gradually, or if you’ve been hit with an unexpected bill, poor credit personal loan from City Finance can help. City Finance aporves quickly bad credit loans from $500 to $5,000 cash and give you up to 12 months to pay it back.
2. FinanceOne
FinanceOne is a leading provider of personal loans in Australia and one of the best personal loans for bad credit lenders available for people with bad or poor credit. This platform specializes in offering personal loans for people with bad credit or who have had difficulty sourcing a loan elsewhere, to help them either rebuild or build good credit history. FinanceOne loan ranges from $5,000 to $25,000 with repayment terms from 3 – 4 years. Approvals can be obtained in as little as 48 hours.
3. Money3 Loan
Money3 is one of the best personal loan for bad credit Australia, offering bad and poor credit borrowers access of personal loans up to $30,000 for many purposes such as car repairs, cash emergencies, medical expenses or even special occasions.
To get started, select the type of loan you are looking for and Money3 will need your contact and employment details to get your application started. Your application will then be reviewed and providing the loan is suitable and affordable for you, it could then be approved if you are over 18 years old, earn at least $480 a week, be an Australian resident and have your income paid into your account.
4. Australian Lending Centre
If you found yourself restricted by your bad credit and you need a personal loan for bad credit Australia, Australian Lending Centre can help by their compassionate financial solutions for your bad debt. The platform tailors bad credit personal loans to your situation and work to relieve your stress! To get started, you can apply on their website or call their friendly personal loans team on 1300 138 188.
5. Savvy Loan
Savvy is one of the most reputable online banking and financial application that offers very fast personal loans for bad credit Australia with turnaround time as low as 60 seconds and flexible repayments. Savvy believes that bad credit might be an impediment in life, especially when it isn’t a borrower’s fault, however it shouldn’t mean you’re punished for it forever. Savvy helps connect you with a lender who meets your personal loan needs where you can get a quick offer starting from $2,050 up to $5,000 which is 100% online.
What is Personal Loans Bad Credit in Australia?
Personal loans with bad credit Australia are a special category of personal loan designed for borrowers with low, poor, no credit scores or no credit history at all. Lenders in Australia that offer personal loan bad credit may accept borrowers with good or excellent credit scores (690 or higher) but have underwriting that’s flexible enough to accept those with low poor scores equally. Good2GoLoans, City Finance, FinanceOne, Money3 Loans and Savvy Loan are the major personal loans bad credit lenders in Australia.
How can I obtain a personal loans for bad credit Australia?
You might not be able to walk into a traditional bank branch and get a personal loan with bad credit Australia. But if you look in the right place, getting a personal loan with bad credit can be relatively straightforward. Lending platforms such as City Finance, FinanceOne, Money3 Loans and Savvy Loan reviewed above can help you with a bad credit personal loan or connect you to multiple specialist lenders who offer such loans to borrowers. You’ll be able to see real offers and interest rates based on your situation, without it impacting your credit score.
How do bad credit personal loans work?
Bad credit personal loans Australia are specially designed for borrowers who have a low credit score or poor credit history. This is usually because the borrower has defaults or other negative information on their credit report. But in many respects bad credit loans work in the same way as other personal loans. You borrow a fixed amount of money for a fixed term (duration) and repay it in weekly, fortnightly or monthly instalments, plus interest and fees.
Bad credit personal loan can be used for a range of purposes, including debt consolidation, paying for a holiday or financing a home renovation. The key difference is that bad credit personal loans are riskier for lenders. Because of this, there are some limitations to be aware of.
What are the interest rates on bad credit personal loans Australia?
The average personal loan interest rate for loans with bad credit (0-459 credit score) is 25.25% p.a. The average rate for borrowers with a credit score between 460 and 660 is 20.07% p.a. But remember, your interest rate will be tailored to you and some bad credit borrowers will qualify for lower rates, starting from around 15% p.a.
It’s definitely worth your while shopping for the lowest interest rate you can find, as it can have a major impact on your regular repayment and how much the loan will cost you overall.
Remember to pay particularly close attention to the loan’s comparison rate as this factors in how fees impact the overall cost of the loan. Use a personal loan calculator to work out the cost of different loan options based on the rate.
Best bad credit personal loan Australia interest rate comparison
| Loan amount | Weekly repayment (15% interest) | Weekly repayment (20% interest) |
|---|---|---|
|
$5,000 |
$27 |
$30 |
|
$10,000 |
$55 |
$61 |
|
$15,000 |
$82 |
$91 |
|
$20,000 |
$109 |
$122 |
|
$25,000 |
$137 |
$152 |
|
$30,000 |
$164 |
$183 |
In Conclusion
Obtaining even small personal loans for bad credit Australia might be a great challenge in life if you have had incidents with poor credit in the past and most likely when it isn’t your fault. Defaults on your credit history can happen due to dodgy housemates, unforeseen accidents, and other misfortunes. That shouldn’t mean you’re punished for it forever. The lending platforms reviewed above can help you meet your personal loan needs even if you have a poor or no credit history at all.
Please note that personal loans for bad credit customers in Australia can attract interest rates of up to 30% per annum in the most extreme cases. This factors in any risk your lender is taking on as a result. However, this only represents the maximum rate you can receive for your loan, so your personal situation may mean that it ends up being lower.
