Top Lenders for Bad Credit Personal Loans in Australia: Rates & Terms Compared

When you're dealing with bad credit for personal loans, getting approved for finance can feel like a steep uphill battle. Whether you need funds for debt consolidation, emergency expenses, car repairs, or medical bills, finding a lender who understands your financial situation is key.

Fortunately, even if you’ve been turned down before or have a history of defaults, there are lenders in Australia who specialise in personal loans for horrible credit. In this guide, we’ll compare the top lenders offering terrible credit loans, including their interest rates, loan terms, and eligibility requirements — so you can make an informed decision even with a low credit score.

What is Bad Credit and How Does It Affect Personal Loan Applications?

Bad credit typically means you’ve had difficulties meeting financial obligations in the past — missed repayments, defaults, bankruptcy, or frequent loan rejections. Credit scores in Australia range from 0 to 1,200 (depending on the credit bureau), and a score below 500 is often considered subprime or “bad.”

Lenders use this score to assess your risk level, and a low score may result in:

• Higher interest rates

• Shorter repayment terms

• Lower borrowing limits

• More documentation for approval

However, some non-bank and alternative lenders specialise in loan applications with bad credit, offering second chances through tailored personal loan products.

Top Lenders for Bad Credit Personal Loans in Australia (2025)

We’ve shortlisted the most trusted lenders based on transparency, approval speed, customer reviews, and loan flexibility.

1. Nimble

• Loan Amount: $2,000 – $25,000

• Loan Term: 6 to 48 months

• Interest Rate: From 8.99% p.a. (comparison rate from 14.99%)

• Minimum Credit Score: No minimum

• Best For: Fast approvals for low-score borrowers

Nimble is a well-known lender that accepts applicants with terrible credit and minimal documentation. Their quick online application takes under 10 minutes.

2. Money3

• Loan Amount: $500 – $12,000

• Loan Term: 3 to 24 months

• Interest Rate: Varies, typically higher for poor credit

• Minimum Credit Score: None specified

• Best For: Centrelink recipients and those with personal loans for horrible credit

Money3 is flexible with income sources and is known to approve Centrelink-supported loan applications with bad credit.

3. Credit24

• Loan Amount: $500 – $10,000

• Loan Term: 3 to 24 months

• Interest Rate: 24%–48% p.a.

• Minimum Credit Score: 300+

• Best For: Short-term loans with manageable terms

If you have a fair or bad credit score and need a short-term solution, Credit24 offers a relatively simple application process.

4. Fair Go Finance

• Loan Amount: $500 – $10,000

• Loan Term: 3 to 24 months

• Interest Rate: From 17.9% p.a. (comparison rate 65.75%)

• Minimum Credit Score: Low accepted

• Best For: Rebuilding credit with consistent repayments

Fair Go Finance is designed for Australians looking to rebuild after financial hardship. They also report repayments to credit agencies, helping you rebuild.

5. Sunshine Loans

• Loan Amount: $2,000 – $5,000

• Loan Term: Up to 9 months

• Interest Rate: 20% establishment + 4% monthly

• Minimum Credit Score: Flexible

• Best For: Small loans for urgent needs

Sunshine Loans provides short-term loans and is very open to customers with bad credit for personal loans.

What Interest Rates Can You Expect?

Interest rates for terrible credit loans are generally higher to reflect the risk to the lender. Here's a general breakdown:

Credit Score	Likely Interest Rate	Lender Type
300–500	20% – 48%	Non-bank lenders
500–650	14% – 29%	Alternative lenders
650+	6% – 14%	Traditional banks

Rates can vary depending on the loan amount, term, and your individual circumstances, including income and employment stability.

How to Improve Your Chances of Loan Approval

Even with personal loans for horrible credit, you can boost your approval odds by:

• Providing proof of income: Steady income reassures lenders.

• Applying for smaller amounts: Smaller loans are easier to get approved.

• Using a guarantor: Some lenders accept co-signers to reduce risk.

• Correcting credit report errors: Check Equifax, Experian, and Illion for free.

Documents You’ll Typically Need

Most lenders offering loan applications with bad credit will ask for:

• 90 days of bank statements

• Valid ID (Driver’s Licence, Passport)

• Proof of income (Payslips, Centrelink documents)

• Employment or income details

Things to Watch Out For

Not all lenders are equal — beware of:

• Hidden fees: Origination, early exit, and monthly admin charges

• Scams: Always confirm lender legitimacy via ASIC or reviews

• Balloon payments: These can strain your budget at the end of a term

Compare & Apply with Confidence

Finding the best lender for bad credit for personal loans can be a game-changer for your finances. By comparing interest rates, fees, loan terms, and eligibility requirements, you can choose a lender that fits your needs — even if your credit history is less than perfect.

Ready to Apply for a Bad Credit Personal Loan?

Power Market can help you compare trusted lenders that work with loan applications with bad credit. Whether you need funds fast or want to rebuild your score over time, we’re here to guide you.

Frequently Asked Questions ( FAQS )

1. Can I get a personal loan with bad credit in Australia?

Yes, many lenders offer bad credit for personal loans in Australia. Non-bank lenders like Money3 and Fair Go Finance specialise in terrible credit loans.

2. What is the minimum credit score for loan approval?

There’s no universal minimum. Some lenders accept loan applications with bad credit, including scores under 500.

3. Are personal loans for horrible credit more expensive?

Generally, yes. Personal loans horrible credit options come with higher interest rates due to the risk involved.

4. Do I need to be employed to get approved?

Most lenders require income, but some accept Centrelink as partial income for bad credit for personal loans.

5. Will applying for a loan hurt my credit score?

Only if the lender performs a hard credit check. Many terrible credit loan lenders use soft checks during pre-approval.

6. Can I repay a bad credit loan early?

Yes, but check for early repayment fees. Some lenders charge penalties on personal loans horrible credit if repaid ahead of schedule.

7. What if I’m rejected for a loan?

Avoid applying again immediately. Instead, improve your score and reapply or try lenders who specialise in loan applications with bad credit.

8. Can I get a loan with a guarantor?

Yes, adding a guarantor can improve your approval chances even with bad credit for personal loans.

9. How long does it take to get the funds?

Some lenders offer same-day or next-day transfers for approved terrible credit loans.

10. Where can I compare lenders easily?

Use Power Market to compare rates, terms, and lenders offering personal loans for horrible credit tailored to your profile.