Is your bad credit hindering you from accessing a personal loan? There is a solution. Bad credit can result from unpaid debts, bankruptcy and court judgments. If you have had any of the above credit issues, it may be challenging for you to get a personal loan in Australia. In this article, we are going to focus on personal loan for bad credit in Australia.
What is a Bad Credit Score in Australia?
- In Australia, the average credit score is 550 according to VedaScore. Therefore, anything below 500 is considered a bad credit score. A credit score is an indication of your creditworthiness to a borrower. It shows how financially stable you are. It is used by lenders to determine your likelihood of servicing your debt.
How to Get Personal Loan with Bad Credit in Australia
First, it is important to note that getting a personal loan with bad credit in Australia is hard. It is because missed payments or defaulting in debts will be on your credit file and that is the first thing lenders will check before giving you a loan. Lenders will make an assessment to determine your likelihood of repaying them on time and in full.
If you have bad credit and are looking for personal loan with bad credit, you have the following options:
- Secured personal loans. It is easy to get a secured personal loan bad credit Australia. You only need to secure the loan with an asset like your car or home. If you are not able to repay the loan, the lender can sell the asset to recover the money.
- Guarantor personal loans. Guarantor personal loans bad credit Australia are easier to find. You will need someone to guarantee that the loan will be repaid. In case you are unable to repay the loan, the guarantor will be responsible for repaying the loan. A guarantor should have good credit history and can be a parent, friend, spouse, or relative.
- Unsecured personal loans. An unsecured personal loan is a kind of loan where the lender does not require you to provide an asset as a security for a loan. Normally, unsecured personal loan bad credit Australia attracts high-interest rates. As such, you may end up paying a lot more than you would have initially paid.
- Crypto backed loans. Crypto backed loans are a great option for people with poor credit scores and who have crypto assets such as bitcoin. You don’t need credit check to qualify for the loan and you can use crypto as collateral. There are lenders dedicated to offering crypto backed loans in Australia.
- Joint personal loans. This is a kind of a loan where people apply for a loan as a group. You can apply for joint personal loans bad credit Australia if you cannot get approved for a personal loan by yourself.
Unsecured Personal Loan Bad Credit Australia
- Even if you have bad credit, you can still get a personal loan for bad credit rating Australia. There are many lenders that offer unsecured personal loan bad credit Australia based on individual circumstances and not based on credit history. You can get a personal loan with bad credit if you have an income and a good banking record. An unsecured personal loan gives you more financial freedom. This can go a long way in helping you meet medical expenses, consolidate debt, renovate your home or even pay for education.
What Can I Use a Personal Loan for?
You can use a personal loan for various purposes. Some of them include:
- Home improvement
- Vehicle accessories
- Vehicle repairs and car finance
- Education costs
- Medical bills
Personal Loan for Bad Credit Providers in Australia
The are many lenders for a personal loan for bad credit, unsecured loans, joint personal loans, and guarantor personal loans in Australia. With many online personal loans for bad credit Australia, you get a chance to select your preferred lender from multiple lenders.
Harmoney is one of the best unsecured personal loan bad credit Australia. They give a minimum loan of $2,000 with a repayment term of between 3 to 7 years.
Harmoney Fees and Interest Rate
Their annual interest rate is 5.35% with a monthly repayment amount of $619.89. they charge an application fee of $275 for loans below $5,000 and no monthly service fee.
OurMoneyMarket Personal Loan
OurMoneyMarket can help you get a guarantor personal loan easily. You can get a minimum loan of $2,001 with a repayment term of between 1 to 7 years. The loan comes with a monthly repayment amount of $615.20.
OurMoneyMarket Fees and Interest Rate
While the lender does not charge a monthly service fee, there is only a once-off establishment fee that is added to your loan proceeds. The establishment fee is subject to a minimum of $250. There are other non-standard fees such as a late payment, loan cancellation, or adjustments to your loan terms.The annual interest rate is 5.87%.
Now Finance is also one of the best guarantor personal loans bad credit Australia. They offer a minimum loan of $5,000 with a monthly repayment amount of $607.99. Te repayment period is between 18 months and 7 years.
Now Finance Fees and Interest Rate
Now Finance has an annual interest rate of 5.95%. They do not charge application fees or monthly service fees.
Wisr is also one of the best guarantor personal loans bad credit Australia. They offer a minimum loan of $5,000 with a monthly repayment of $626.07. Their repayments terms are for between 3 and 7 years.
Wisr Fees and Interest Rate
Their annual interest rates are 5.95%. However, they charge an application fee of $595.
Symple is an unsecured joint personal loans bad credit Australia. You can get a minimum loan of $5,000 with a monthly repayment of $646.48. The loan comes with a repayment period of between 1 and 7 years,
Symple Fees and Interest Rate
Their annual interest rate is 5.75. They charge an application fee of between 0% and 5% of the loan amount and a monthly service fee of $10.
Society One is one of the best personal loan for bad credit Australia. They give a minimum loan of $5,000 with a monthly repayment of $630.75. The repayments loan term is 2 to 5 years.
Society One Fees and Interest Rate
The lender offers an interest rate of 5.45% and does not charge a monthly service fee while the application fee ranges between $0 and $595.
Helio Lending Crypto Loans
Helio Lending offers crypto-backed loans in Australia. The company does not loan the money itself. It works with over 9 institutions and so you get a chance to choose your preferred lender. The minimum loan amount is $50,000. You can even get a crypto mortgage by securing it with crypto. You only need to register and apply for the loan online.
Hello Lending Fees and Interest Rate
Crypto loans via Hello Lending have interest rates starting as low as 4%. Helio’s services are free.
Summary of Personal Loan with Bad Credit Australia
Getting a personal loan with bad credit can be challenging. However, there are lenders who are dedicated to offering bad credit loans. If you cannot get a personal loan due to a bad credit rating, you can try getting a secured loan, joint personal loan, or a guarantor personal loan. Alternatively, if you have crypto, you can also try crypto-backed loans.