Personal Loans with Unpaid Defaults
Access second-chance financing with a bad credit personal loan found through Savvy’s partnered lenders.
- Borrow up to $5,000
- Outcome in 60 seconds
- Flexible repayments
- 100% online
Fact checked
Fact checked
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
Flexible, nationwide lenders
Our lender panel spans the country, giving you access to financiers across Australia when considering your options.
100% online process
From reading into your chosen lender to receiving your funds directly into your account, you can complete the process on your smartphone.
Immediate lender matching
Once you’ve found a lender that can accommodate your financial situation, we’ll take you straight to their site.
How to get approved for your personal loan with unpaid defaults
Take steps towards improving your credit rating
Just because you have unpaid defaults doesn’t mean you can’t help your credit score in some ways. As long as your defaults remain unpaid, you’re unlikely to make any significant strides in improving your rating, but there are things you can do to improve it slightly.
Lowering the limits on your credit cards and getting rid of those which you don’t use are methods you can take to increase your score.
Utilise your savings where possible
Growing your savings and using them for whatever purchase you’re after will also greatly help your chances of approval. By paying for part of your purchase or expenses with your own money, you decrease the potential loan amount required and alleviate the level of risk your lender may feel about your application.
This will also cut down on the interest you’ll pay on your loan by reducing your principal amount.
Avoid any job changes prior to applying
Lenders look for stability of income, particularly when it comes to borrowers looking for bad credit personal loans. As such, if you’ve just started a new job, or have multiple job changes in the months leading up to your application, it’ll be more difficult for you to get approved for financing as there’s a greater risk of your income situation changing.
Try to stay in the same job for three to six months prior to submitting your application.
Apply with a co-borrower
Another way around a weaker borrowing profile is submitting a joint application with a co-borrower such as your partner. Joint applications can increase your chances of approval and borrowing power while reducing your interest rate. This is because the loan’s repayments are shared between you and your co-borrower and aren’t reliant on a single income stream.
Even if your co-borrower has a good score, though, you’ll be limited to bad credit borrowing restrictions.
Enlist a guarantor
A guarantor is another option for borrowers with defaults on their file to maximise their approval chances. This is a person who agrees to guarantee the repayment of the loan even if you’re unable to do so, which adds a firm layer of security to your finance deal. Like a co-borrower, guarantors can increase your borrowing power and lower your interest rate.
They won’t be involved in your repayments at all if you can keep on top of them throughout your loan.
Frequently asked questions about personal loans with unpaid defaults
Helpful personal loan guides
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
