Personal Loans with Unpaid Defaults

Access second-chance financing with a bad credit personal loan found through Savvy’s partnered lenders. ​

Apply in less than 10 minutes.

Last updated on April 20th, 2022 at 01:56 pm by Thomas Perrotta

Find a personal loan even if you have unpaid defaults

Most of us encounter financial struggles from time to time, so it’s not unusual to end up with a default on your file if you can’t quite keep up with repayments. You can find personal loans for you, even with unpaid defaults on your file, with Savvy’s flexible lending partners today.

The features of personal loans for borrowers with unpaid defaults

Use the funds how you like

Perhaps most importantly, personal loans can be utilised in any way you like, from consolidating debt to paying for a getaway for you and your family.

Borrow up to $12,000

You’ll be able to borrow any amount from as little as $2,000 up to $12,000, provided you can show that you’re capable of supporting your loan’s repayments comfortably.

No security required

There’s no requirement for you to put up an asset as collateral for your personal loan, which may bring peace of mind if you’ve defaulted in the past.

Fast approval and fund transfer

Your personal loan application can be turned around and your funds can be sent through to you in as little time as one business day after applying.

Flexible accepted income

You can utilise income from your full-time, part-time, casual or self-employed job, as well as include earnings derived from an eligible Centrelink benefit.

No upfront payments

You also won’t be required to make any lump-sum payments such as a deposit on your loan, with all fees and interest built into your weekly, fortnightly or monthly repayments.

Why borrowers with unpaid defaults choose Savvy to help find a loan

How to get approved for your personal loan with unpaid defaults

Frequently asked questions about personal loans with unpaid defaults

Are there any loans with guaranteed approval for bad credit borrowers?

No – each lender abides by Australian responsible lending guidelines, meaning that they must assess each application on its merits and cannot guarantee approval for any type of borrower. They can’t lend to a borrower who they don’t believe is capable of repaying the loan they’re asking for, for instance, so every loan application is subject to lender review.

Am I eligible to apply for a loan if I’m bankrupt?

No – if you’re currently bankrupt, you’re not eligible to be approved for a personal loan. Once you’ve been discharged, however, your application will be considered by specialist lenders who accept borrowers with past bankruptcies on their file.

Should I apply for a small cash loan?

A small cash loan is another option for borrowers with unpaid defaults. These loans are available from as little as $300 up to $5,000 over terms of 16 days to two years and are generally easier to obtain than standard or bad credit personal loans. Your application can be turned around and funds sent to you in as little as 60 minutes. However, depending on the loan, you may find that personal loans are cheaper than small loans due to their differing fee structures.

Can I pay out my personal loan early?

Yes – we’re partnered with lenders who enable you to pay out your personal loan early without incurring any fees for doing so. This can save you a meaningful amount in interest and fees on your finance deal overall, so you should look to take advantage of such a feature where possible.

How long can I take to repay my loan?

Bad credit personal loans are generally limited to loan terms up to two to three years maximum, with a minimum of one year. The shorter your loan term, the less interest and fees you’ll need to pay on your loan, albeit with steeper repayments.

Can I improve my credit score with a personal loan?

Yes – by taking on a personal loan and making full and prompt repayments, positive marks will be recorded on your credit file. If you can do so consistently across your loan, your score will continue to rise, which can potentially help you get approved for a better loan in the future. As a borrower with unpaid defaults, your priority should be to avoid the same thing occurring on your new loan.

Which Centrelink benefits can count towards my personal loan?

Lenders who accept Centrelink benefits include those which are stable in nature, such as aged, disability, single parent, carers’ and veterans’ pensions and payments. Other payments aren’t accepted due to the fact that they’re conditional on recipients being a certain age or meeting study or employment criteria, which can all change. Some of these are:

  • JobSeeker (on its own)
  • Youth Allowance
  • Austudy