Bad Credit Personal Loans

Posted December 14th, 2010 and last modified September 30th, 2013

Bad Credit Personal Loans

Bad credit personal loans can be difficult to source for many people. If your credit report shows a history of defaults, missed payments or other negative listings, most lenders will make it difficult for you to qualify for any kind of credit at all.

Bad Credit Personal Loans Comparison

Rates last updated September 29th, 2014
Fox Symes Debt Solutions
Fox Symes Debt Solutions
Consolidate your debt with a Fox Symes Debt Consolidation Solution. Fox Symes may be able to assist you to get back in control of your finances and start to reduce your debt whether it be your mortgage repayments, credit card, personal loan. Go to siteMore

In fact, you may find that the only option available to you is to ask a friend or family member to co-sign your personal loan application. Effectively, they're signing as a guarantor for you.

While this might sound like a convenient way for you to get the money you want, it can be extremely risky for the person co-signing your application. If you can no longer afford your repayments, the person who went guarantor for you becomes liable to keep up with your repayments for you. This can put a lot of strain on relationships and friendships.

Qualifying for Bad Credit Personal Loans on Your Own

Despite most personal loan finance brokers wanting to tell you that there's no other way to qualify for bad credit personal loans unless you have a guarantor, there are options available to you.

The main reason banks won't consider you as a good candidate to borrow money is because you already show a history of missing payments or defaulting on other debts you may have had.

In order to change their minds about your credit-worthiness, you will need to take some responsibility for getting your finances back on the right track.

Most personal loan assessors may decide to reconsider rejecting your application if you can provide them with a strong enough reason to approve you. This means spending a little bit of time building up a savings pattern in a dedicated savings account. It also means catching up any late payments on other debts you have outstanding. It may also mean finding a secure job and hanging onto it so you can show a regular pattern of income.

Keep your statements and your payslips every time you receive them. Your bank will want to know why your history was so bad but they will also be interested in the steps you've taken to get yourself back on the right track again.

If you can show that you've worked hard to change your spending patterns and your savings habits, you might just find that being approved for bad credit personal loans on your own could happen.

Another alternative would be to consider payday loan options otherwise known as short term loans which offer short term credit options. Be aware thought that the interest rates on these loans are quite high.

Ask a Question

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to receive follow up emails related to and to create a user account where further replies to your questions will be sent.

31 Responses to Bad Credit Personal Loans

  1. Default Gravatar
    Kevin | July 21, 2014

    Hi, i owe over 7500 to small lenders & i am looking to get a loan to pay them all off the bank has already said no, i make the payments to all of these lenders each month but iam left scraping to get bye i have tryed everything but do not want too or can afford too go bankrupt wich seems to be the answer from fox symes i need help.

    • Staff
      Shirley | July 23, 2014

      Hi Kevin,

      Thanks for your question.

      Unfortunately can only offer general and factual advice.

      If you’re experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday.


  2. Default Gravatar
    deep | September 17, 2013

    hi i am looking for a loan $25000 but i got a problem with my credit history with vodafone and i am working full time can i get a personal loan

    • Staff
      Marc | September 17, 2013

      Hello deep,
      thanks for the question.

      Some lenders will still offer loans to those with bad credit, although these may come with higher fees or interest rates. You may wish to do a search on the net and find some lenders and then begin comparing them. If you’re trying to get a loan from a bank it’s sometimes a good idea to start a savings account with them and start making regular deposits, as this shows you’re disciplined and could handle a loan.

      It may also be a good idea to get a free copy of your credit file and see if there are any other marks on it which may be stopping you from getting approved. For more information please read this page here.

      I hope this helps,

    • Staff
      Shirley | September 17, 2013

      Hi Deep,

      Thanks for your comment.

      Please have a look at our bad credit loans – it may be worthwhile to explain your situation with the lender and to see what the outcome is before you apply, as many application will look worse on your credit history.

      Hope this helps,

  3. Default Gravatar
    D | August 16, 2013

    Hi All

    I need to get a loan to pay out a vehicle loan and a high interest personal loan totalling $20000. The current repayments on the car and personal loan is roughly $1300 per month.. but a $20000 loan over 7 years is about $400 per month. So, capacity isnt a problem and I have no defaults. but unknowingly, I did online enquiries not knowing these are actually applications. My main bank wont look at it because of the enquiries, do you know of anyone who would take this into account??

  4. Default Gravatar
    anonymous | August 10, 2013

    I am in arrears on my home loan and about to lose my home. I have bad credit from 2 credit cards from the past. I want to know is there anyone that will give me a loan to pay the outstanding arrears or who would consider refinancing my home loan. I am employed and have enough equity in my home. I fell behind due to my previous work ceasing.

    • Staff
      Shirley | August 12, 2013

      Hi Anonymous,

      Thanks for your comment.

      Sorry to hear about your situation. You may want to get into contact with Fox Symes as they special in debt solutions. Please see this page about missing mortgage repayments as it could give you more information about who to contact.

      Hope this helps,

  5. Default Gravatar
    Cassie | April 23, 2013

    Can you receive a loan if you are on centrelink benefits? I am wanting to consolidate all my debts to just one payment but found no one is willing to help.

    • Staff
      Marc | April 26, 2013

      Hello Cassie,
      thanks for the question.

      Some loans are available to Centrelink recipients, although it depends on the loan type and amount. For more information have a look at this page.

      I hope this helps,

  6. Default Gravatar
    Daniel | March 13, 2013

    I didn’t receive the email for pre-approval.

    • Staff
      Marc | March 13, 2013

      Hello Daniel,
      thanks for the comment!

      It might be useful to call your lender directly to discuss this.


  7. Default Gravatar
    Raelene | February 6, 2013

    I am desperate i need to consolidate loans and have extra to pay other people please i need help $20000 should be ok i can afford it if i consolidate

    • Staff
      Adrian | February 7, 2013

      Hi Raelene,

      Thanks for your question.

      You may want to use a free and independent financial counsellor to help you with this process.

      One of the hints in this process is to call prospective lenders and find out if you’ll qualify before you apply online. Applying for loans and getting knocked back will impact your credit record.

      Here is our comparison of debt consolidation loans.

      Cheers, Adrian.

  8. Default Gravatar
    Kathy | January 31, 2013

    I have an old credit card debt due to a messy divorce. I was wanting to pay off this debt by taking a small loan to pay it. Then I will clear my bad credit so that I can take out a loan and move on with my life.

    • Staff
      Adrian | January 31, 2013

      Hi Kathy. Thanks for contacting me. There’s nothing worse than sexually transmitted debt. It is a pretty common problem in Australia.

      It really depends on what works for you to pay off this debt. If you need a long period of time to pay off this debt, and you have had a blemished credit record, then a personal loan is an option. This is our comparison of debt consolidation loans.

      If you are able to secure a balance transfer credit card, and are able knock of the debt within the low interest balance transfer period (depending on the card, this can be from 5-15 months), then the interest rates are pretty favourable provided you are diligent and don’t add to your debt on the card.

      Finally. It may be worth seeing a financial planner or a free independent financial counsellor to advise you along the way.

      Cheers, Adrian.

  9. Default Gravatar
    Jason | December 21, 2012

    I’m an fulltime sales rep, earning 50-70k per annum. i have applied for a lot of loans mainly on net due to extreme working hours and time management, but i have not accepted finance generally due to excessive repayments. is there an institution that wont penalise me for these enquiries as i wish to consolidate/lend approx $8,000. i have no defaults but i am receiving resistance due to those enquiries. any ideas???

    • Staff
      Adrian | January 3, 2013

      Hi Jason. Too many hits on your credit record from applying for many personal loans usually translates to getting turned back or banks rating you as a greater credit risk.

      One of the best ways is to call up each prospective personal lender and be forceful that you are not applying but are making a general enquiry about what the repayments will be for your situation. You don’t want too many hits on your credit record.

      Here is our comparison of personal loans. We also have a personal loan calculator which will provide you with a rough projection of your repayments based on the interest rate of your personal loan.

      All the best.

  10. Default Gravatar
    Tapaau | December 7, 2012

    Am I ever going to get approved for a loan at all?

  11. Default Gravatar
    Anonymous | November 29, 2012

    I have bad credit however I have changed my ways and am trying to get ahead. I need a loan of $1200 for rental bond. Where can I try?

  12. Default Gravatar
    Amanda | October 22, 2012

    I have a full-time job I am renting and have bills including an lotus account all which are fully paid each month. I would like to get a personal loan, my current credit history is bankrupt ): can I still apply now I am money smart???

    • Staff
      Adrian | October 22, 2012

      Hi Amanda. It might be worth having a chat to a reputable finance broker for this one. Please remember the old quip: ‘don’t spend money you don’t have, on things you don’t need, to impress people you don’t like.’
      All the best.

  13. Default Gravatar
    kim | October 18, 2012

    can you get personal loans, for more than 2 years?

    • Staff
      Adrian | October 18, 2012

      Hi Kin. Car loans are commonly up to 7 years. However bad credit loans tend to be temporary solutions to get customers back into regular personal loan products.
      All the best.

  14. Default Gravatar
    Robyn | October 1, 2012

    What If I am on a pension that I get over $1600 per month? I have been out of debt now for 2 yrs and I have no defaults or owe any money anywhere.
    I will be off the bad credit rating list in Feb 2014.

    Kind regards

  15. Default Gravatar
    Troy | July 13, 2012

    Hi I was enquiring about a personal loan. It says loans with no credit checks what does this mean? Are there any reasons somebody won’t get approved?

    • Staff
      Marc | March 25, 2013

      Hello Troy,
      thanks for the question.

      A loan without a credit check may refer to a loan such as a payday loan, where little documentation is required to access the loan, although this usually comes with a higher interest rate or other fees. Applicants can still be disapproved. Many of these types of loans will have requirement such as a minimum income and time spent at their job, as well as an eligible cheque or savings account.

      I hope this helps,

  16. Default Gravatar
    Ben | February 13, 2012

    Is there anywhere that will lend me money? I only have an outstanding debt of under $1000 and I am looking for a loan to pay that off and also borrow $2000 on top of that for setting up in a new city with furniture.

    • Staff
      Marc | April 10, 2013

      Hello Ben,
      thanks for the question.

      There are several options you can take. There are payday loans, which are short term loans with higher interest rates than regular personal loans, and there are also lenders who will provide different types of personal loans to those with bad credit. I suggest having a search on the internet for a specific lender and then calling them to discuss your options.

      I hope this helps,

Personal Loans Comparison

Rates last updated September 29th, 2014
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee
NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed
A fixed interest loan with no fees for extra or early repayments. From 12.99% (fixed)
13.86% Info
$5,000 1 to 7 years $150 Go to siteMore
SocietyOne Low Interest Personal Loan
SocietyOne Low Interest Personal Loan
Pay off your personal loan faster with the freedom to increase your repayments at any time and save money. Enjoy 1.25% discount on rate for a limited time. From 9.95% (fixed)
9.95% Info
$5,000 1 to 3 years $0 Go to siteMore
RACV Car Loans
RACV Car Loans
A low fixed interest offer for new car loans. From 7.25% (fixed)
7.76% Info
$5,000 1 to 7 years $357.90 Go to siteMore
Aussie Personal Loan
Aussie Personal Loan
A wedding, new car or holiday. Aussie offers personal loans with flexible loan terms. From 12.99% (fixed)
13.94% Info
$3,000 1 to 7 years $199 Go to siteMore
Ask a question