Bad Credit Loans

Bad credit history? Secure a loan in 3 simple steps!

Why get a bad credit loan?

There often comes a time in life when you need to borrow money. Whether it’s a personal emergency, a big purchase you’d like to pay off gradually, or if you’ve been hit with an unexpected bill. In these circumstances, it’s normal for someone to apply for a personal loan.

But what happens if a financial institution denies you because of your low credit score? That’s where City Finance can help. Even if your credit rating is far from perfect, we could still lend you money with one of our cash loans.

How it works

Here’s a quick rundown on what to expect when you apply for a bad credit cash loan.


To apply for a loan with City Finance, you’ll need to fill in a quick online application form. Simply select the amount you’d like to borrow, the repayment time and provide some personal information and proof of identity.


Once we receive your information, our team will call you to confirm your application details. If your application is approved, we’ll send you an email confirmation and get your bank account details so we can send over the money.


If approved, you should receive the money by the end of the day. However, most customers receive their loan even sooner. From here, you can spend the money on what you please and repay the loan in weekly, fortnightly, or monthly instalments.

Our eligibility criteria

For bad credit loans, all we need is some basic information, proof that you have an income, ID and some bank statements.

To qualify, you must:

  • Receive regular income
  • Be an Australian resident
  • Be at least 18 years old or over

Why choose City Finance for a bad credit loan?

We move quickly

As our team focuses on small loans only, our staff’s time isn’t stretched thin over a lot of different tasks. This means our customers can enjoy a fast approval process and a same-day cash deposit*.

Inclusive lending

Unlike other lenders, we consider applicants with a poor credit history or those receiving Centrelink payments as long as they meet our eligibility criteria and receive a regular income.

Flexible repayment plans

Our friendly team can work with you to detail a repayment schedule that you can stick to and are happy to help if your circumstances change and you are unable to meet your payments.

No hidden fees

At City Finance we have transparent terms which mean there will be no hidden fees or charges if you choose to make early payouts or extra repayments.

Reputable lender

With over 20 years of experience as an industry-leading credit provider, we’ve helped thousands of Australians who were turned away from other mainstream lenders.

Hassle-free repayments

We’re not in the business of wasting time. Rather than fussing around with monthly bills, we direct debit the payments from your nominated bank account at a frequency that suits you.

Ongoing support

Talk to a real person as part of your application and get help choosing the right loan option for your personal circumstances.

What can I use a small loan for?

Car repairs

While car problems happen to the best of us, the cost of new parts and mechanics normally runs quite high. If you don’t have a pool of money available, a car repair loan could help cover the costs and get you back on the road.

Medical expenses

Even with Australia’s great healthcare system, there can still be a lot of out-of-pocket expenses. Think: a deductible for a chiropractor, medications or an ambulance. Put your health first with a medical loan.

Rental bond

A bond is a huge expense and can be frustrating on top of other moving costs. Rather than paying it in a lump sum, you could use a small cash loan to cover the rental bond and pay it back at a rate that suits you.

Furniture or white goods

If you can’t afford to pay up upfront, rather than renting the goods and essentially throwing the money away, you could take a loan with us and own the furniture and white goods.

Home renovations

Renovations can add significant value to your house, but how can you add value if you don’t have the money for home renos in the first place? Easy! Apply for a loan and get your tools ready to go.

Travel loans

If you need a break and are dying for a holiday but don’t have enough savings, a travel loan could help you cover the cost of flights or accommodation and allow you to take your trip sooner.

Dental costs

Smashed your front tooth? Painful root canal? Wisdom teeth coming through? An appointment at the dentist certainly costs a pretty penny and you may not have enough money on hand.

Bad Credit FAQs

What are bad credit loans?

Contrary to the name, bad credit personal loans aren’t only designed for people with less than desirable credit – they’re also handy for people with little to no credit history. Without an established and spotless credit file, banks can be hesitant to grant loans to customers.

A credit check is when a financial institution looks up information to understand your financial behaviour and credit history. Credit checks generate scores for each individual. Typically, the lowest possible credit score is 0 and the highest possible score is 1000.

In most cases, Australian banks will require a score of 700 or higher in order to approve a credit card or personal loan. If your rating is lower than 700 a bank may consider you “high risk”. Most financial institutions will use the following key to analyse your credit score.

Credit Score RangeIllionEquifaxExperian
Excellent800 – 1000833 – 1200800 – 1000
Good700 – 799726 – 832700 – 799
Fair625 – 699622 – 725625 – 699
Poor550 – 624510 – 621550 – 624
Very Poor0 -5490 – 5090 – 549

You can actually perform your own credit history check online. However, it’s important to only use an established credit checker, some credit checks can affect your credit score negatively. You can find a tool to check your credit score, this one will not impact your score.

There are plenty of different ways that a credit score can be affected negatively, but they all come down to owing money which can create problems if you’re interested in borrowing money.

Below are some factors that can cause your credit rating to drop.

  • Late payment on your phone bill
  • Applying for a lot of loans or credit cards
  • Co-signing for someone with a bad credit rating
  • Having a high credit balance – even if repayments are made
  • Any late or missed payments
  • Any bills that you’ve ignored and haven’t paid

A credit score can be raised by making sure all of the owing payments are settled. Once you do this, your credit score will slowly rise over time.

Yes! If you’ve been rejected by a bank for having a bad credit score, you’re probably wondering how you can build your good credit back up if you aren’t given the opportunity to prove you’ll make payments on time.

This is another area where bad credit personal loans can help. If you take out a bad credit loan and continue to make your payments on time every month, your credit history will improve. This is because you’re proving that you can make payments on time and aren’t a risk to lend money to.

Yes, as long as you are aged 18 or over. Our small loans for bad credit are specifically designed to help close the gap in market for consumers who are either excluded from, or who simply choose not to obtain cash loans from mainstream financiers.

If you have bad credit, no credit experience, or would just prefer the personal service of a loan-specific company as compared to mainstream lenders, then we could help! Unfortunately, if you are declared bankrupt or in a Part 9 debt agreement we cannot assist for 12 months after discharge.

Yes. Without any experience of repaying loans on your records, many banks will consider you “high risk”. As a result, you may be denied a loan. At City Finance, our loans for bad credit are also available to people with no credit experience. This loan can also help you build a good credit score for the future.

Often, when a customer applies for a bad credit loan with us, they will receive the money that same day. However, some cases require our staff to look into it, so it may take a little longer. Regardless, you’ll usually receive the funds the same day that you are approved for the bad credit loan.

This is really flexible and can be tailored to fit your needs. The maximum of time you’ll have to pay your bad credit loan is 52 weeks. However, we can do any time frame between 1 and 52 weeks, if you’d like to pay off your loan sooner. We recommend paying it off in a shorter term to save on fees and interest. For example, If you took out a loan of $2000 over 40 weeks you’d pay $80 a week or $160 a fortnight.

No, we don’t require this as long as you are over 18. Traditional financial institutions do tend to ask for a guarantor or a co-signer if the person applying doesn’t have a good credit history or enough experience with borrowing.

No, we’ve helped thousands of Aussies who have been turned away from other financial institutions previously. These customers were able to secure their bad credit loans quickly and easily with us and make simple repayments in a way that suits them.

At City Finance the process of applying for a bad credit loan is simple. We don’t need a bunch of different documents, all we require is the following:

    1. A copy of your ID
    2. Proof of income (Eg a payslip or Centrelink benefits statement)

Because of the risk involved with lending money to people who don’t have a perfect track record of paying back the money, the interest rate on loans for bad credit tends to be slightly higher.

At City Finance we offer two types of bad credit loans;

  1. SACC (small amount credit contract): With a SACC, you can loan between $500 and $2,000. The cost is a 20% upfront establishment fee (split across payments) and a 4% monthly maintenance fee.
  2. MACC (medium amount credit contract): If you’re after more money, you can take out a MACC between $2,001 and $5,000. You will be charged a flat upfront $400 establishment fee (split across payments) and a 48% annual percentage rate.

At City Finance we are very flexible with our payments. If you are able to pay off your loan early – or make an early payment – we won’t charge any early payment or early termination fees.

Alternatively, if you need to change a payment that’s within your bad credit loans term we can help rearrange your payment terms. However, if you don’t let us know that you are unable to make a payment, we will have to charge you a dishonour fee.

A default is a negative note on your credit report that drags your score low. Defaults happen when the amount owed is over $150 and the debt is more than 60 days overdue.

Defaults will stay on your credit score for five years and have a very negative impact on your rating. Furthermore, if the lending company deems the default a clearout – which means they believe you had no intention of paying off the amount – the default will stay for seven years.

You can find out more information about defaults here.


Highly highly highly recommended City Finance to anyone. The staff are absolutely amazing and very helpful. My experience the two times I have used their services have been amazing. Thank you guys!

Lulu Millar
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I had a very easy and straight forward experience dealing with City Finance... Very much appreciated the quick flow of decision making displayed. Regards, Graeme

Graeme Austin
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Great customer service, they're happy to help out when you need it if something unexpected has happened and you need cash fast, definitely recommend and repayments are tailored to your needs.

Cassandra Dodd
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Wonderful people very friendly and helpful been with them for some time now and have never had an issue with them always have my payments on time

Pauline Arrowsmith
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City finance for fantastic. The application is still in fairly quickly within outcome usually within 24 to 48 hours. Customer service is lovely and the only company that would help me out with the loan when no other one would. Highly recommend.

Chanelle Ryan
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