Payday Loans for Bankrupts

Declared bankrupt? Get another shot at finance with Savvy.

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 September 12th, 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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$500
$50,000


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 September 12th, 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.

Being declared bankrupt can put up plenty of obstacles to getting a second chance at finance. However, not all of your options have to be cut off. It’s important to note that while your payday loan approval chances are slimmer if you’re currently bankrupt, there may be some lenders open to approving your application.

Applying with Savvy can help you secure a loan with flexible repayments and straightforward terms. We partner with a panel of lenders who’ll look beyond your borrowing history when assessing your application. Apply with Savvy today.

Can I get approved for a payday loan if I am bankrupt?

Bankruptcy will limit your options when it comes to taking out a new loan but it doesn’t necessarily rule you out. There may be some direct money lenders on the market who might be willing to work with you, which isn’t the case for other types of finance.

The application process is no different if you’re bankrupt. A lender will assess your financial situation and determine whether you’re earning enough to afford a new loan. You’ll also be asked to provide some details regarding your work and income to show that you’re in a position to repay the loan you’re applying for. Lenders will also run a credit check and verify your income and expenses using a ‘read-only’ copy of your bank statements. That means there's no need for physical bank statements if you're applying for a personal loan. If they’re happy with all of this information and are willing to lend to you, you can be approved formally.

How much can I borrow with a payday loan if I’m currently bankrupt?

You can borrow between $2,050 and $5,000 with a payday loan, depending on a few personal variables, with perhaps the most important being your income. The more you’re earning, the more you’ll be able to borrow. These earnings can come from multiple streams, including Centrelink or casual work, but they must be consistent to maximise your borrowing power. Your record of repayment on similar loans, current expenses and employment status can all also impact how much you can borrow.

There are also several different fees associated with payday loans which are important to account for. These are a capped establishment fee of $400 and ongoing monthly fees which can't total more than 48% of your overall loan amount each year.

It’s important to note that fees can also impact your borrowing power, as they eat into your monthly repayments. For example, if you were taking out a $4,000 loan over 12 months, you’d automatically know that you’d have to pay $33.33 each month to cover the establishment fee and $160 to cover your monthly fee.

How do I qualify for a loan if I am bankrupt?

If you need money ASAP, you must satisfy several eligibility criteria. These are the same for all customers, even if you’re bankrupt and have bad credit. To apply, you must adhere to the following requirements:

  • Age: You must be over 18 years of age to apply for a loan. There is no specific age limit on applicants, but older customers may need to meet more criteria to be approved.
  • Residency: You need to be a permanent Australian resident or citizen to apply for a loan. Temporary residents or those on student visas may be able to get a loan, but this will come down to the lender’s criteria. You may need to meet further criteria to qualify.
  • Income: You must be earning a steady and consistent income for at least three months before you apply for a loan. If your income isn’t 100% stable, such as if you’re working as a sole trader, you may need to provide your lender will some additional documents. Bankrupt applicants may also need to supply more documentation.
  • Online Banking: Your bank accounts must be accessible through internet banking. As part of your application, you will need to share an encrypted copy of your bank statements with your lender to verify your income and expenses.
  • Contact Details: You must have a working mobile number and email address. Your lender may call you to discuss your application and they will require your email address to send you digital copies of your loan contract.

Why apply for a small loan with Savvy?

Frequently asked payday loan questions

What can I use my payday loan for?

Veterinary bills, medical procedures and vehicle repairs are just some of the expenses you can cover with a payday loan. You can also use a fast cash loan to pay for rent arrears, home repairs, purchase of furniture and general living costs. You won’t be able to use your funds to gamble or pay off another payday loan, though.

Can I get a payday loan if I am under a Part 9 Debt Agreement?

If you’re under a formal arrangement to settle your existing debt, it’s unlikely lenders will approve your payday loan application. However, there may be lenders on the market who could consider you for approval if you’re currently under a Part 9 Debt Agreement. Approval on a loan will be easier if you wait until you have finished your payment arrangement.

Will my credit score impact my chances of approval?

No – you can apply for an online instant cash loan even if you have a very bad credit score. It won’t be your lender’s central focus when you’re applying for a loan, as they’ll look more at your current financial circumstances to ensure you can afford the loan you want.

How fast can I get my payday loan?

If you receive formal loan approval, you can have your payday loan funds paid out and receive them on the same day in most cases. However, this will depend on your bank’s transfer speeds, when you apply or whether your lender requires more information to complete your application.

I’m a single mother. Can I get a payday loan?

Yes – you can apply for a fast cash loan if you’re a single parent on Centrelink. Single parent payments are among the handful of fixed Australian government benefits that can be included as a form of income on your application. The other eligible ongoing payments include:

  • Disability pension
  • Carer payment
  • Child care subsidy
  • Family Tax Benefit Part A and B
Will being discharged from bankruptcy improve my chance of approval?

Yes – you’ll have a greater chance of getting approval on a payday loan if you’ve been discharged from your bankruptcy. Bankruptcies usually end three years and one day after you file your paperwork.

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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.