Having bad credit can make borrowing feel more challenging, but it doesn’t mean you’re out of options. Whether you’re rebuilding your credit score or just getting started, there are lenders that can help you access the finance you need. We’re partnered with specialist lenders across a range of loan types to help people with less-than-perfect credit find the right solution. Compare your options and start your application through us today.
Our range of bad credit loan options
Car
Bad credit doesn’t need to be a roadblock for your car loan application. Savvy can connect you with specialist vehicle lenders that work with borrowers with poor credit to secure suitable car finance.
Leisure
If you’re looking to finance a leisure vehicle, we can help. Our team can match you with lenders that offer fast approvals for motorbikes, boats and RVs, even if you have bad credit.
Commercial
Whether you’re running a business with a poor credit score or just starting out, we can find a finance option for you to purchase or lease commercial assets like vehicles and equipment.
Home
Even for a loan as large as a mortgage, there are lenders willing to work with borrowers who have low credit scores. Savvy can help you explore your home loan options and get the ball rolling on your application.
Personal
Personal loans offer flexible finance for almost any purpose, from holidays to debt consolidation. We’re partnered with specialist lenders that consider applications from people with bad credit, helping you find a solution that suits your needs.
Small
These smaller loans of up to $5,000 provide quick access to cash. Approval is based more on your ability to repay than your credit score, so even with bad credit you could be funded in as little as 60 minutes.
Bad credit loan interest rates
Interest rates for bad credit loans are generally higher than those offered to borrowers with strong credit, as lenders see these borrowers as higher risk.
For example, our average car loan interest rate for a borrower with good credit is 7.43% p.a. in June 2025 – but for those with bad credit borrower this is significantly higher, averaging 17.02% p.a.
However, your rate can still vary significantly depending on your credit profile, the type of loan and whether it’s secured or unsecured.
For example, car loans are secured by the vehicle you're purchasing, which gives lenders added security and can help lower your interest rate compared to unsecured options.
In contrast, personal loans are typically unsecured, meaning there's no asset backing the loan. As a result, they tend to attract higher interest rates than secured loans, especially for borrowers with bad credit. In some cases, rates could exceed 20% p.a.
Why apply for a personal loan with Savvy?
How are bad credit loans different from regular loans?
There are two main differences between bad credit loans and standard loans:
- Cost: interest rates and fees are usually higher with bad credit loans. This is because lenders consider borrowers with poor credit a higher risk, so they charge more to offset the chance of missed repayments.
- Borrowing limits: you may not be able to borrow as much as someone with good credit. For example, while car loans can go up to $100,000 or more, bad credit borrowers are often approved for lower amounts.
Otherwise, the loan works the same way: you’ll receive a lump sum and repay it over a set term. A bad credit loan can still help you access the finance you need, and if managed well, it may even help improve your credit over time.
How to apply for a bad credit loan
The steps to apply for a bad credit loan will depend on the type of finance you’re after. Each loan type has slightly different requirements, so it’s important to understand the process that applies to your situation.
No matter which loan you’re applying for, you can start your journey by entering your details on the Savvy website. We’ll connect you with a broker or one of our trusted lending partners that specialises in the type of finance you need.
Below is an example of how the process works for a bad credit car loan:
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Fill out our online application
Our simple personal loan form helps us find out about you, the type of loan you’re after and your credit history. By completing this application, your consultant can get to work searching for any suitable options among our panel of lenders.
Supply any required supporting documents
As part of this process, you may be required to submit some further documentation to help us confirm your income and employment. This can be done online via our portal, which will also enable you to electronically sign other documents such as your consent form.
Speak with your consultant about your options
Once your consultant has considered the loans available among our panel, they’ll give you a call to discuss your situation and what the best offers may be in terms of their cost and suitability. They can also provide you with an indicative interest rate. From there, you can give them the go-ahead to prepare your application for formal approval.
Have your loan approved
Formal approval can take as little as one business day, after which we’ll handle the settlement process once everything is signed.
How to increase your chances of approval for a bad credit loan
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Improve your credit score
The better your credit score, the better your chances of loan approval. Things like paying bills on time, keep credit card balances low and avoiding multiple credit applications can help rebuild your score over time.
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Pay off outstanding debts
Every debt you have will impact your ability to borrow. By paying them down, you’re both reducing your financial commitments and showing lenders you’re capable of paying your debts.
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Save up a deposit
Demonstrating savings will increase a lender’s confidence in you as a borrower. On top of this, putting down a deposit reduces the required loan amount, reducing the potential risk taken on by your lender.
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Lower your credit limits
Lowering the limits on your credit cards decreases the amount of overall unsecured debt you’re exposed to. Even if you don’t have any debts outstanding on your credit card, it can be impacted by a high limit, so reducing it can improve your chances of getting a loan.
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Try to avoid job and address changes
Lenders want to see stability. Staying in the same job for an extended period and living at the same address in the months and years leading up to your application can make a big difference.
