Guaranteed Bad Credit Loans Australia

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

Apply in less than 10 minutes.

Last updated on August 2nd, 2022 at 09:17 am by Kurtis Eichler

Bad credit small loans from $300 to $5,000

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. 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 20% on loans up to $2,000. The maximum you’ll be charged is a flat $400 fee on loans above $2,000.
  • A monthly fee of 4% on loans up to $2,000. Loans above this have their fees capped at 48% annually.

The shorter your term, the more you’ll save on fees. Loans come with term options for up to two years, depending on how much you borrow. For loans up to $2,000, you get the option to repay your loan between 16 days and one year. However, if you borrow $2,000 or more you’ll get the option to repay over two years. 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
Three months
Six months
Nine months
12 months
15 months
18 months

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.