fbpx

How to Get a Loan with Bad Credit Score

Let’s face it – it’s difficult to get a loan with bad credit score. That’s because a lot of banks and lenders will show you the door if your credit score is below 600. After all, your credit score tells them how likely you are to be able to repay your loan. Therefore, the lower your score, the lower your chances.

But don’t despair. Just because it’s difficult, that doesn’t mean it’s impossible! We’re going to help you find the best options to get a loan with a bad credit score in Australia.

Where to Get a Loan with Bad Credit Score

These institutions are the best places to look for a personal loan. You should always compare the exact rates offered and make sure you get the best possible deal. But remember that with a bad to average credit score, you can expect to pay higher interest rates than someone with a decent credit score.

Australian Military Bank Fixed Rate Personal Loan

Interest Rate (p.a.) – Between 7.93% and 18.87% depending on your risk profile

Loan Amount – Between $1,000 and $80,000, but only up to $40,000 for debt consolidation

Loan Term – From 1 to 5 years

Application Fee – Between $100 and $500

Monthly Service Fee – $10

Visit Website and see if you qualify for a loan.

Citi Personal Loan Plus

Citi Personal Loan Plus

Interest Rate (p.a.) – Between 8.99% and 17.99% depending on your risk profile

Loan Amount – Between $5,000 and $75,000, but this depends on your credit score and income

Loan Term – From 3 to 5 years

Application Fee – $0 (but a $199 establishment fee may apply)

Monthly Service Fee – $10

Visit Website and see if you qualify for a loan.

Latitude Personal Loan (Unsecured)

Interest Rate (p.a.) – Between 13.99% and 29.99% depending on your risk profile

Loan Amount – Starting at $3,000, but Latitude will decide on a maximum depending on your credit score

Loan Term – From 2 to 7 years

Application Fee – $140 for loans $3,000 to $3,999 and $250 for loans $4,000+

Monthly Service Fee – $13

Visit Website and see if you qualify for a loan.

MoneyPlace Unsecured Personal Loan

Interest Rate (p.a.) – Between 7.65% and 26.99% depending on your risk profile

Loan Amount – Between $5,000 and $45,000, but the maximum will depend on your situation

Loan Term – From 2 to 7 years

Application Fee – $150

Monthly Service Fee – $10

Visit Website and see if you qualify for a loan.

NAB Personal Loan Unsecured Variable Rate

Interest Rate (p.a.) – Headline Rate of 12.69%, but how much interest you pay will depend on your risk profile

Loan Amount – Between $5,000 and $55,000, but you should use their borrowing power calculator to see your maximum

Loan Term – From 1 to 7 years

Application Fee – $150

Monthly Service Fee – $10

Visit Website and see if you qualify for a loan.

NOW FINANCE Personal Loans

Interest Rate (p.a.) – Between 8.95% and 16.95% depending on your risk profile

Loan Amount – Between $5,000 and $40,000

Loan Term – From 1.5 to 7 years

Application Fee – $495 (based on a loan of $10,000, so your application fee will depend on your loan amount)

Monthly Service Fee – $13

Visit Website and see if you qualify for a loan.

RateSetter Unsecured Personal Loan

RateSetter Unsecured Personal Loan

Interest Rate (p.a.) – Fixed-rate starting from 7.38% depending on your risk profile

Loan Amount – Between $2,001 and $45,000, but your maximum will depend on your risk profile

Loan Term – From 0.5 to 5 years

Application Fee – $299

Monthly Service Fee – $0

Visit the Website and see if you qualify for a loan.

Don’t Get a Payday Loan

It’s very easy to find someone, either online or on the street, offering payday loans even if you have a bad credit score. This may seem like a good idea, but they typically charge an annual percentage rate (APR) of around 350%. These high-interest rates trap borrowers in a neverending cycle of predatory debt, especially if you’re in the low-income bracket.

If you’ve been considering taking out a payday loan, don’t. Rather stick with the options we’ve given you above and work at building your credit score.

Get a Loan with Bad Credit Score Conclusion

As you’ve now seen, it’s not impossible to get a loan with a bad credit score. But in the long-run, you’re going to find it easier to get a loan (and better rates) if your credit score is higher than 600.

To get a better credit score, you should start by paying off all of your debt (high-interest debt first). You should also try to only use less than 30% of your available credit, and pay all your bills on time.

But while you work on that, there are at least 7 viable options for you to get a loan with bad credit score.

Leave a comment

Your email address will not be published. Required fields are marked *