Bad Credit Personal Loans

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

  • Borrow from $300 to $5,000
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  • Flexible Repayments
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Last updated on April 8th, 2022 at 04:28 pm by Bill Tsouvalas

Don’t sweat bad credit with a personal loan

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.

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Unsecured loans

You won’t need to worry about putting up a valuable asset as collateral, as you can find unsecured loans right here.

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Higher approval rates

We’re partnered with lenders who specialise in helping borrowers with bad credit get approved for financing.

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Flexible usage

Just because you’re taking out a bad credit personal loan doesn’t mean you can’t use the funds however you see fit.

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Useful features

Our lenders can offer a variety of features to help make the repayment process better for you, such as early repayments.

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Instant lender matching

Our smart online systems quickly match you with one of our specialist lenders based on your application and the loan you’re looking for.

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Fast applications

You can have your application processed, approved and funded in as little as 24 hours after submission.

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?

Personal loans usually exceed $2,000 at the lower limit and don’t go beyond $10,000 to $12,000, 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.

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

No – there’s no obligation to apply after enquiring with a lender.

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 $300 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 20% of the cost of your loan and an ongoing fee of 4% of your loan with each payment. 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.