Bad Credit Personal Loans

Get back on track with a competitive bad credit personal loan.

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.

$2100
|
|
|
|
|
$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.

Bad credit? Don’t worry

Bad credit might be an impediment in life, especially 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. At Savvy, we can help connect you with a lender who meets your personal loan needs.

Forge ahead with better finances

According to credit reporting agency Veda, 600,000 Australians are at-risk for credit default. This means you are far from alone when it comes to having a poor credit history. Savvy understands this, and knows that a personal loan for debt consolidation purposes can give you a leg up out of debt and into good financial standing. Find out more about your options and start your application today.

Small Personal Loans Banner

Why apply for a small loan with Savvy?

Have questions about bad credit personal loans?

I know bad credit loans have higher interest rates – how high are they?

Bad credit or “sub prime” loans can attract interest rates of up to 30% p.a. 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. 

How much can I borrow?

The way small personal loans work is they usually exceed $2,050 at the lower limit and don't go beyond $5,000, though this also depends on the health of your finances.

I am an ex-bankrupt, may I apply?

If you have been discharged from a bankruptcy and have a clean financial record for over 18 months, you may apply. Lenders will run a check of your finances, so you won't be able to get a personal loan on the spot.

Do I have to apply after I’ve made an enquiry?

No – there’s no obligation to apply after enquiring with a lender for an online bad credit loan

Is there any restriction on what I can spend the money on?

Not really – you can essentially spend your personal loan funds on whatever you like. There are some limited restrictions, such as using them for gambling, but aside from these you can essentially make use of the money however you like.

Can a guarantor help me get approved?

Yes, if you have bad credit, a guarantor can possible assist in getting more funds approved.

Can I get approved if I have just started a new job?

Yes, there are likely options for you but will come with some conditions for a new job personal loan

Your helpful guides to bad credit personal loans

Using personal loans as consolidation

Though many of us consider personal loans for use on cars, holidays, renovations, or family emergencies, bad credit personal loans can also be used as consolidation loans. Once approved, you can pay off smaller, high-interest debts in one “hit.” This means you only pay one monthly payment instead of many others. You should make sure that any outstanding debts being paid off don't come with early repayment fees or other related charges which either partially or wholly negate the consolidation in the first place. In most cases, though, you'll notice a clear difference (and saving) after combining your debts under one roof.

Bad credit loans vs. small personal loan

It's important to understand the difference between regular bad credit personal loans and small personal loans, or payday loans. Small loans range from as little as $2,050 up to a maximum of $5,000 and can be repaid over terms of 16 days to two years in total. The biggest difference, however, is that these loans don't really charge interest. Instead, they're charged fixed, capped fees: an establishment fee of up to $400 of the cost of your loan and ongoing fees capped at 48% of your loan amount each year. With this structure, you'll know exactly what you'll be paying for your finance deal well ahead of time. These loans also come with no early repayment penalties.

Personal loan over a balance transfer

Balance transfers can be a good way to get out of a large credit card debt. However, if you do not pay off the balance – or even add to it – within the zero-interest period, this can leave you worse off. Here’s why: personal loans are, on average, much cheaper than credit cards, especially in terms of interest rates. Credit card interest rates average around 17-19% p.a. A personal loan – even a bad credit one – could end up cheaper over time. Instead of making minimum monthly repayments, which ensures you incur interest, paying off a personal loan will guarantee an eventual zero balance, which means you can leave your finances in better health compared with when you started 

Can I get a secured personal loan?

Though most personal loan products are “unsecured” i.e., they do not have an asset which the loan is tied to, some personal loans can be secured to a high-value asset such as a car. This can increase chances of approval and lower your offered interest rate. However, if you default on your loan, your lender has the right to repossess the collateral to recoup the costs on lending you the money as a last resort. It's important to note, though, that most bad credit personal loan specialists don't offer secured personal loans as an option, so if you have your heart set on one, you'll have to do your research to find a lender who can accommodate your needs. 

Helpful small loan guides

Small Loans Banner - Woman typing on her laptop while sitting in her kitchen

Need Money Now

You can apply for a cash loan online when you need money now and get funds in your bank by...

Small Loans Banner - Young couple looking at their finances and needing money desperately

I Need Money Desperately

Apply for your small loan with Savvy today and get an outcome fast. Borrow up to $5,000 Outcome in 60...

Small Loans Banner - Middle-aged couple comparing payday loan interest rates on a laptop

Payday Loan Interest Rates

Payday loans are a different breed. Here’s your quick guide to how you compare payday loan costs. Borrow up to...

Small Loans Banner - Young couple assessing their financial situation before applying for a loan

No Credit Check Loans

Find out whether you can get approved for a loan with no credit check and get your application started with...

Small Loans Banner - Young couple working out their finances before applying for a loan

No Questions Asked Loans

Looking for a quick cash loan? Apply with Savvy today. Borrow up to $5,000 Outcome in 60 seconds Flexible repayments...

Small Loans Banner - Young woman smiling while looking at her tablet on the couch

Payday Loan Eligibility

Wondering how to qualify for a payday loan? Well, it’s pretty easy, and you’ve come to the right place. Borrow...

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.