Guaranteed Bad Credit Loans Australia

Need a small loan to tide you over but have a bad credit score? Savvy has you covered.

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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
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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.

Past approval struggles got you looking at ‘guaranteed’ or ‘no credit check’ loans? These don’t exist among reputable lenders, but by turning to Savvy, you can still get financing approval with bad credit.

By partnering with understanding Australian lenders, we can help you get approved for a small loan even if your credit rating is looking a little worse for wear. Apply with us today and get the funds you need fast.

Can I get a guaranteed loan in Australia with bad credit?

No – reputable lenders in Australia can’t offer guaranteed loans for bad credit borrowers. However, it’s important to note that your credit score won’t be a major issue with these types of loans, even if it’s very bad. Short-term lenders in Australia consider a range of other factors when looking at your application, including your earnings and borrowing history. Their main focus when assessing applications is whether you’ll be able to afford your loan.

These checks serve as part of licenced lenders’ responsible lending obligations, which aim to protect the credit licensees and the borrower. They can’t approve applications for borrowers who are unable to show that they can afford to support their repayments. As such, ‘no credit check’ loans also don’t exist among credible lenders.

How can I get a loan with bad credit?

As mentioned, lenders aren’t as focused on your score when assessing your application, which sets them apart from other types of finance like personal and car loans. So, you won't have to go hunting for instant approval on online loans with no credit checks. All loan applicants will have to meet some standard eligibility criteria, even if they have very bad credit. Review these conditions before you submit your application.

Over 18 years old

Your age can be verified when you supply identification documents during the application process, such as a driver’s licence or passport.

Permanent Australian resident

You can either be permanently residing in Australia or be a citizen to apply for a payday loan. There may be lenders willing to consider you if you’re a temporary resident holding an accepted visa.

Regular income

You’ll need to have been earning some form of stable and consistent income for at least three months to qualify. This can come from a mix of sources, including wages, investments, Centrelink benefits or superannuation. Lenders accept all types of job statuses, with casuals and part-timers able to apply. If you’re a sole trader and your earnings are less stable, you can still apply but you may have to meet more criteria to be approved.

Active contact details

An active mobile phone number and email address are a must. On the odd occasion, your lender may need to phone you to double-check aspects of your application, so a working mobile phone number is vital. Likewise, lenders will send your digital loan contract to your email so you’ll need an address that’s easy to access.

Online banking access

You’ll need to have online access to your bank accounts. Lenders will request a secure copy of your login details so they can review a ‘read only’ version of your bank statements to verify your income and expenses. At least 90 days’ worth of statements will be required. .

How much do bad credit loans cost?

Bad credit payday loans come with several fixed fees which are rolled into your borrowing amount. Lenders lay out these fees in your loan contract so you can easily factor them into your budget. These charges include:

  • An establishment fee of no more than $400.
  • An ongoing monthly fee, which is capped at 48% annually.

The shorter your term, the more you’ll save on fees. Loans come with term options for 16 days up to two years, with shorter terms resulting in lower overall costs. You can follow our simple table to see how much you can save at different term lengths, from three months up to 18.

Loan amount Term length Establishment fee Monthly fee Monthly regular repayment Total loan cost
$2,500
Three months
$400
$100
$1,066
$3,200
$2,500
Six months
$400
$100
$583
$3,500
$2,500
Nine months
$400
$100
$422
$3,800
$2,500
12 months
$400
$100
$341
$4,100
$2,500
15 months
$400
$100
$293
$4,400
$2,500
18 months
$400
$100
$261
$4,700

Why apply for a small loan with Savvy?

Your bad credit loan questions answered

Can I get a loan with defaults on my credit file?

Responsible lenders tend to steer clear of applicants with defaults on their credit report. While getting a loan with unpaid defaults is tough, it’s not impossible; there may be payday lenders willing to help you. They may be prepared to consider the timing of the defaults and what they were for to give you a shot at approval.

How long does it take to get a bad credit loan?

Most of the time, you can be approved and funded as soon as the same day you apply. Once you submit your initial application, you're guaranteed an instant outcome on your loan. If you’re pre-approved, formal approval is possible very soon after pending some quick checks.

Can I use a bad credit loan for debt consolidation?

Yes – bad credit loans are incredibly versatile and can be used to cover a range of expenses, including debt consolidation. Bundling your debt into one payment can save you money and make your overdue loans more manageable. You’re unlikely to be able to repay outstanding finance such as a car loan with a payday loan, given that these loans max out at $5,000.

Can I apply for a loan if Centrelink benefits are my only source of income?

Yes – you can be approved if fixed government benefits are your sole form of income. Most lenders will let you count fixed government benefits as a form of income when you apply for a small loan. Eligible ongoing Centrelink benefits include:

  • Aged, disability and veteran’s pensions
  • Carer’s payment
  • Child care subsidy
  • Family Tax Benefit Part A or B

 

Temporary support measures such as Youth Allowance, Austudy and ABSTUDY aren’t eligible forms of income on their own. However, JobSeeker can be used as a low-income subsidy.

I’m in a Part IX Debt Agreement. Can I still be approved?

Getting approval for a loan will be difficult if you’re under a formal arrangement to repay your debts and lenders are unlikely to give you the green light. However, there may be lenders out there who could consider your application.

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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.