Bad Credit Loans

Even a bad credit score won’t stop you from getting approved for a loan. Learn about your options across a range of finance types with Savvy.

  • Borrow up to $5,000
  • Outcome in 60 seconds
  • Flexible repayments
  • 100% online
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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 October 16th, 2024       

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.

$500
$2,050
$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 October 16th, 2024       

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.

Bad credit? Don’t sweat it

Get approved for your loan with bad credit

If you’re saddled with a bad credit score, it’s important to know that you’re far from alone: hundreds of thousands of Australians find themselves in that very position. While it hasn’t always been the case, there are more specialist lending options today than ever before when it comes to financing loan applications from those with imperfect credit histories. Just because you have bad credit doesn’t mean you can’t be approved for the loan you need to help you achieve your financial goals.

Let Savvy help you out

We understand that bad credit can happen for a myriad of reasons and believe that Australians in this position deserve a second chance at financing. Because of this, we’ve built partnerships with lenders across a variety of finance types to help you find your ideal loan. Whether you’re in the market for your next car, a new home or miscellaneous funds for your personal needs, you can compare your options here and start the application process today.

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Why Savvy can help you find your ideal bad credit loan

A Range of Options

Specialist lending partners

You can compare from a variety of flexible lenders who understand your situation and can approve applications for those with bad or very bad credit.

No Obligation

100% free and accessible

You won’t have to pay a cent to use our service, while you can find all the information you need on the go via your smartphone.

Bad Credit Specialists

Online process from start to finish

There won’t be any need for you to leave the comfort of your home when applying for your loan, as our partnered lenders offer fast online processes.

Our range of bad credit loan options

Car

Bad credit doesn’t need to be a roadblock for your car loan application. You can apply with Savvy today and be connected with one of our specialist partners through your dedicated consultant, all in as little as 48 hours.

Leisure

If you’re looking to take your holiday to the next level by purchasing a caravan, boat, jet-ski or anything else, you can get approved through Savvy. Our consultants work around the clock to have your applications turned around fast.

Commercial

Whether you’re just starting up a new business or continuing to run your existing one with a less than perfect credit score, you can still access the financing you need to purchase or lease commercial assets like vehicles and equipment.

Home

Even with a loan as large as a mortgage, there are lenders operating in the market who can help make your home purchase dream a reality. Start comparing from flexible lender options to get the ball rolling on your application.

Personal

Personal loans can be used for just about anything you like, from funding your wedding, holiday or consolidating existing debts (as well as everything in between). Compare offers with Savvy and get funded within just 24 hours.

Small loans

Otherwise known as cash loans, this type of finance is designed for smaller investments up to $5,000 and shorter repayment terms. Your credit score will take a back seat to your ability to repay your loan, so you can be funded in just 60 minutes.

More about bad credit loans

What are bad credit loans and how do they work?

As the name suggests, bad credit loans are a type of finance designed to suit the needs of borrowers who have struggled with their credit score in the past. These loans are offered by specialist lenders with different restrictions compared to standard finance agreements and provide those who find themselves with a compromised credit score with a financing option not available with traditional lenders. These days, not all hope is necessarily lost if you don’t meet standard financier requirements regarding your credit file.

Firstly, and most importantly, these loans are offered with higher interest rates and fees than those for borrowers with good to great credit scores. This is the case because interest rates are set in large part based on risk, meaning that if your lender believes you to be at greater risk of defaulting or struggling with your repayments down the track.

The second major difference between standard and bad credit loans is the greater restriction on borrowing. Because bad credit borrowers are seen as posing a greater risk of default, lenders are generally unwilling to approve loans as large as those for applicants with a strong credit history. This means that while there’s no theoretical maximum amount when it comes to car loans (dictated by the value of the car and your borrowing capacity), the absolute maximum you may be approved for is $100,000 with bad credit (though it’s usually less).

Aside from these factors, though, the function of your loan is no different: you’ll still receive a lump sum which you’ll repay in instalments over a period as agreed in your loan contract. Above all else, they can open doors for you if you’ve struggled with your credit. You can get the financing process started by applying through Savvy today for your chosen loan type.

How do I get approved for a bad credit loan with Savvy?

The process of applying and getting approved for bad credit finance will vary depending on the type of loan you’re after. For instance, the application process for car or leisure finance is different from personal and small loans. As such, it’s important to familiarise yourself with the process for the type of loan you’re looking for.

Below is the application process for a bad credit car loan with Savvy as an example (which is very similar to those for commercial and leisure finance).

  1. Fill out our online application form: our simple form helps us find out about you, the type of loan you’re after and your financial situation, including the nature of your credit history. By completing this application, your consultant can get to work searching for any suitable options among our panel of lenders.
  2. 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.
  3. 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.
  4. Have your loan approved, settled and drive away: formal approval can take as little as one business day, after which we’ll handle the settlement process once everything is signed. From there, you’ll be the owner of your new car, so you can drive away!

How to increase your chances of approval for a bad credit loan

Common bad credit loan questions

Can I get approved for a loan if I’m on Centrelink?

There are specialist lenders across all finance types who can accept Centrelink payments as part of your assessable income. It’s important to know which payments can be accepted in your loan application, which include the following:

  • Aged pension
  • Disability pension
  • Veterans’ Affairs pension
  • Family Tax Benefits A and B
  • Single parent payments
  • Carer payments
  • JobSeeker (as a low income supplement)
Is pre-approval still available for bad credit finance?

Yes – you can still be pre-approved for finance even if the product you’re applying for is designed for borrowers with bad credit. This will help you gain a clear understanding of how much you’re eligible to borrow, which can help you if you’re using the pre-approval to negotiate on the price of a particular item or asset.

Will I be able to refinance to a better loan if my credit score improves?

Borrowers can look to refinance their loans down the track if they’ve kept up with repayments and their credit score has improved to potentially take advantage of a better deal and lower rates. While this isn’t really an option for small loans, you can refinance just about any other loan deal. However, you’ll need to consider any early exit costs associated with doing so.

How long will it take me to get approved?

Having bad credit and applying to a specialist lender may not impact the approval time for your loan as much as you might expect. However, this depends entirely on the type of loan you apply for. A small loan or personal loan can be approved and funded as soon as the same day you apply and car loans can take as few as two days, but a larger loan like a mortgage is likely to take weeks or months to complete, especially with a complex financial profile.

Will I be able to take out a loan if I’m under a Part IX debt agreement?

There are lenders operating in the market who can approve applications from individuals under a Part IX debt agreement. It’s important to note, though, that you’ll stand a far greater chance of approval for your loan if you wait until your agreement has been completed, as more lenders will be able to help you.

Can I be approved with unpaid defaults on my file?

Lenders who work with customers who have an imperfect credit record can often look past unpaid defaults and are able to approve your application. Like a Part IX debt agreement, though, you’ll boost your chances of approval if you pay off your existing defaults before you apply, as your outstanding debt will be lower and your borrowing power will be increased overall.

How soon after being discharged from bankruptcy can I apply for my loan?

You can apply for finance from the day after you’re discharged from bankruptcy. Unlike Part IX debt agreements, bankruptcies won’t allow you to apply whilst hanging over your head, so you’ll be required to wait until your commitments are completed before applying for credit with a lender.

Can I get guaranteed approval on my loan with any lenders in Australia?

No – all lenders are required to do their due diligence when assessing applications to determine whether the individual or couple is able to comfortably take on and repay the proposed loan. In that way, there is always an element of oversight from the lender which prevents guaranteed approval in any form.

Will applying for a joint bad credit loan help my chances of approval?

Adding a second borrower to a loan agreement, such as a joint personal loan, may help your approval chances, as lenders will be relying on two incomes instead of just one. However, whether you’re approved will ultimately depend on each of your borrowing profiles and how your lender assesses them.

Can a guarantor help me get approved?

Yes, if you have bad credit, a guarantor can possible assist in getting more funds approved.

Can I use a loan to consolidate my debts?

Yes – you may be able to take out a personal loans to consolidate your debts. Once approved, you can pay off smaller, high-interest debts in one “hit”. This means you only pay one monthly payment instead of many others.