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Bad Credit Payday Loans

Even if you have bad credit, payday loan lenders can still approve your application. Find out how in our quick guide.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on November 16th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

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Paid in 60 mins if approved*
Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on November 16th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Bad credit no longer stops you from getting access to funds when you need them – and borrowing between $2,050 and $5,000 can still be quick and easy. Many specialist lenders offer loans with less onus on credit checks. When making decisions, payday loan providers prioritise your ability to make repayments. Past problems or errors needn’t influence your ability to get cash when you want to move forward financially. When you apply for bad credit payday loans, lenders mainly use supplied documents and your current financial situation to assess your application.

What are the payday loan options for people with bad credit history?

Payday loans for people with bad credit have three notable features that make them more accessible. For borrowers trying to get back on their financial feet after a problem, products offer:

  • Fixed cost of borrowing: Fees for payday loans get capped. Setup fees can’t exceed $400, while monthly fees are capped at 48% of your loan amount per year.
  • Choose your repayment period: Payday loan repayment periods are hugely customisable. Borrowing amounts range from $2,050 to $5,000, and you can repay as quickly as 16 days. If you’d prefer to extend that term, you’ve got the option of choosing to repay over any period up to two years.
  • Schedule your repayment dates: Payday loans are designed to fit your specific circumstances. You get to choose when you schedule repayments. For instance, if you get paid on the 5th day of the month, you’re free to arrange repayments on the 6th. Combined with direct debits, that makes it highly likely you won’t miss payments.

How does my credit report work?

Your report is an account of your current and former conduct concerning credit. Lenders and other credit providers submit entries that make up your repayment history. If you’ve failed to make payments on time, that will be on your report.

How can I view my credit report?

There are several credit reporting agencies operating in Australia. Equifax, for instance, allows borrowers to view their report for free in three separate instances:

  • If you’ve been refused credit during the past 90 days
  • Once every twelve months
  • If a correction has been made to your report

What gets reported on my credit file?

Different things stay on your report for varying amounts of time. Entries made by credit providers show defaults and late payments, with a figure that signifies how old the problem is.

  • A missed payment is one that is more than 14 days late – even if you pay it eventually
  • Defaults are defined as payments that are overdue by 60 days or more, and higher in value than $150

How long do negative entries stay on my report?

Depending on the nature of the black mark, the length of time it remains visible on your credit report will vary:

  • Bankruptcy – stays on your report whichever of the two following things happen for you the latest. (1) Five years from the day you entered into bankruptcy, or (2) Two years from the day you got discharged
  • Court judgements – five years
  • Credit enquiries – five years
  • Your repayment history, including late payments – two years
  • Existing credit commitments – two years after they finish
  • Defaults – five years

How can I improve my credit report?

  • Being on time with payments is essential for a good credit score. You can attempt to balance negative entries by taking out a small payday loan and paying it back to get positive entries. Switching your mobile phone from pre-paid to contract is also a form of credit.
  • Paying regular attention to your report is also helpful. Lenders don’t need to send written notice when they mark down a late payment, and mistakes happen too. Check your report often and note any problems. You’ll also be able to see how borrowing helps.
  • Avoid shopping for loans by making multiple applications. Lender enquiries remain visible for five years, and too many are considered a negative

The difference between old and new payday loans

It’s good news for bad credit borrowers. Since 2013, payday loan lenders in Australia must be government approved. Loans provided are excellent for when you have less than great creditworthiness. Along with the fee caps, there are safeguards for repayment penalties too. All lending is carried out based on affordability, and it’s an excellent way to borrow shorter-term. Payday loan products are now safer and fairer than they’ve ever been. Access is quick and convenient – no matter what your borrowing history.

It’s not only your credit rating that can exclude you from finance. There’s good news for other groups too, however. You can use a payday loan if your circumstances would be considered unconventional or prohibitive by major financial institutions – such as banks. Borrowers who receive part or all of their income from Centrelink can apply. The unemployed, the retired, and even younger borrowers with little or no credit history – everyone gets the chance to be considered for bad credit payday loans.

You can apply for a payday loan so long as you’re an Australian resident or citizen and over eighteen. You’ll need to be able to demonstrate regular income during the last three months. Today, for many borrowers, payday loans represent an ideal entry-level financial product.

Remember: lenders will look at your credit report for the primary reason of checking whether you’ve coped well with recent payday loan borrowing. Reputable loan providers won't be able to approve loans for everyone without a thorough check of their credit history.

How long does it take to get a bad credit payday loan?

If you're searching for a bad credit loan, applying is 100% online. That makes for a speedy and convenient borrower experience. Simply fill out the online form, making sure to provide as much information as possible and answer all questions. Then, submit payslips or a Centrelink income statement. Add proof of ID and address, your last three months worth of bank statements, and anything else your lender requests.

When your loan gets approved, the lender will send you a loan agreement. You can sign and return that digitally – then it’s just a case of waiting for your cash to be transferred. Payday loan providers often accept, approve, and then transfer loan funds within hours. Most applications get completed the same day.

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Disclaimer:

The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.

For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.

Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.

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