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 can still lend you money with one of our cash loans. In fact, it’s as easy as 1 (online application), 2 (confirmation), 3 (money funded). We offer loans across Australia – including Brisbane, Sydney, Melbourne, Perth and Adelaide.
Here’s a quick rundown on how you can get fully funded in a short amount of time with minimal hassle.
To apply for a loan with City Finance, you’ll need to fill in an online application form, which you can find here. The application is simple and you’ll just be required to select the amount you’d like to borrow and the repayment time, as well as fill in some personal information and send proof of identity.
Once we receive the information from you, someone from our team will call you to confirm your application details. If your application is approved, we’ll send you an email confirming the approval. We’ll also get your bank details so we can send over the money.
Once you’ve been approved, you should receive the money by the end of the day. However, most customers receive the money even sooner. From here you’ll be able to spend the money on what you please – and you will just need to meet the contracted repayments (weekly, fortnightly or monthly).
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 history, banks can be hesitant to grant loans to customers.
Financial companies – including banks – undertake a credit history check to determine whether you are eligible to take out a personal loan with them. The way that they determine your eligibility is by completing a credit check.
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.
Most financial institutions will use the following key to analyse your credit score.
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”.
Credit scores can be affected by simple things such as paying your phone bill late or an unpaid parking ticket.
You can actually check your own credit score 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 here, this one will not impact your score.
If you’ve found yourself in a situation where your credit score isn’t high enough for a bank to approve your loan, you can get a “bad credit loan” through a financial institution.
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 tends to be slightly higher on bad credit loans. However, the process is a lot more straightforward – and quicker – than going through a bank. With a bad credit loan, you’re likely to receive the money in your bank a lot quicker than you would if you received the loan from a bank.
If you’ve been rejected by a bank for having a bad credit loan, you’re probably wondering how you can build your good credit history 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 are a trustworthy customer who can make payments on time and that you aren’t a risk to lend money to.
At City Finance we can offer bad credit loans from as little as $500 to as much as $5000.
Am I eligible for a bad credit loan?
Yes, as long as you are aged 18 or over. We have granted loans to thousands of customers with a bad credit history who have been turned away elsewhere. If you have bad credit, no credit experience, or would just prefer the personal service of a loan-specific company as compared to the big banks, then we can help! Unfortunately, if you are bankrupt or in a Part 9 debt agreement we cannot assist for 12 months after discharge.
What supporting documents and information do we need to process your bad credit loan application?
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:
- A copy of your ID
- A short application form with details such as your address and phone number
- 90-day history of bank transactions
- Proof of income (Eg a payslip or Centrelink income statement)
How City Finance can help bad credit borrowers
We move quickly – once you submit your online application and chat with one of our friendly team members, you’ll get fast approval and a same-day cash deposit.
At City Finance we focus solely on loans. This means our staff’s time isn’t stretched thin over a lot of different tasks and then can focus solely on approving your loan. Because of this, things happen fast!
You will chat with one of our friendly staff members shortly after submitting your online application and you’ll receive a fast approval as well as a same-day cash deposit.
Inclusive lending – traditional financial institutions, like the big banks, tend to make self-employed applicants jump through a lot of hoops when applying for a loan. This can be frustrating and time-consuming. At City Finance we can streamline this process and allow for self-employed people to receive bad credit loans much easier and quicker.
We also grant bad credit loans to those with a poor credit history or those receiving Centrelink benefits. All we require is that our applicants be over the age of 18, be able to provide 100 points of identity, and have some form of regular income.
Loan specialists – as our team focuses on small loans only, we’re able to have flexibility with our customers. Our friendly employees can work with you to detail a repayment schedule that you can stick to.
When applying for a loan of any sort, it’s important to check the early repayment terms. A lot of financial institutions will still charge you interest for the entire term, even if you pay the loan off early, or they will charge a fee. 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.
A trusted company – when you take out a loan with City Finance you can be comfortable in the legitimacy of our company. We have over 20 years of experience as an industry-leading lender and have helped thousands of Australians who were turned away from other lending institutions.
Unlike online loan applications with big banks, you are able to talk to a real person as part of your application. We will take into consideration your personal circumstance when deciding on the best loan option for you.
Easy borrowing – at City Finance, we’re not in the business of wasting time! Rather than fussing around with monthly transfers and bills, we direct debit the payments from your nominated bank accounts at a frequency that suits you.
Flexible arrangements – our friendly staff are on your team and are happy to help if your situations change and you are unable to meet your payments. If you find yourself in this situation, please just contact our customer care and they will work with you to nut out a contingency plan that will suit your needs and help to keep your life stress-free.
What can I use a small loan for?
A small cash advance loan can be used for basically anything, but here are some examples of why you may need one.
Even if you’re regularly maintaining your car, problems can happen. The cost of car parts and mechanics normally runs quite high. If you don’t have a pool of money available to cover the costs and get yourself back on the road in the case of a breakdown, contact us for a car repair loan.
Even with the great healthcare system that Australia has, there can still be a lot of out-of-pocket expenses that may arise. Think: a deductible for a chiropractor, medications or an ambulance. If you need medical attention and don’t have enough money available, then we can help. Read more about our medical loans.
A bond is a huge cost – it’s usually in the thousands of dollars – and can be a frustrating expense on top of all the other expenses moving house costs. Rather than paying it in a lump sum, you could contact us for a small cash loan to cover the rental bond and pay a small amount out of your weekly pay packet at a rate you are more comfortable with. Read more about our loans for rental bonds.
Furniture or white goods
If you’ve ever looked up rental white goods and furniture you’ll know that they are both extremely expensive. If you can’t afford these things upfront, rather than renting the goods and essentially throwing the money away, you can take a loan with us and own the furniture and white goods. Learn more about our furniture loans.
Unexpected emergencies can arise at any time and you may not have the cash to cover them. At City Finance we understand the urgency of unexpected costs. So, we specialise in getting cash to our customers as quickly as possible so that they can take care of any emergency costs they require. Learn more about our emergency loans.
For most people, their pet is a member of their family. So when he or she gets sick, it’s imperative that they’re taken to the vet to sort out the problem. Vet bills can be very costly and need to be paid before your pet’s condition deteriorates. If you don’t have the money on hand we can sort out a quick, small cash loan for you and your pet. Learn more about our loans for vet bills.
Home renovations can add significant value to your house, but how can you add the value if you don’t have the money for home renos in the first place? Easy! Contact us for a renovation loan and get your tools ready to go.
Thanks to a certain pandemic, our travel options are limited at the moment. However, we’re still allowed to travel locally (sometimes!). If you need a break and are dying for a holiday but don’t have enough savings then we can help. Read more about our travel loans.
Smashed your front tooth? Painful root canal? Wisdom teeth coming through? An appointment at the dentist certainly costs a pretty penny, a situation that you may not have enough money on hand. Contact us for a loan and we’ll get you smiling again.
Bad Credit FAQs
Can I get a bad credit loan if I’ve never had a loan before?
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 we grant bad credit loans to people with no credit experience. This loan can also help you build a good credit score for the future. Applying for a loan with us is very simple and straightforward too, you don’t need to worry about tonnes of paperwork and supporting documents.
How did I end up with a bad credit score?
There are plenty of different ways that a credit score can be affected negatively, but they all come down to owing money. Whether it’s a payment that’s overdue or a non-payment, your score can be negatively affected, which can cause big problems in the future when you want to lend money.
Below are some things 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
Can a loan with you improve my credit score?
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. That’s where we come in. We can provide you with a bad credit loan and if you continue to make your payments on time, your credit history will gradually improve, showing other lenders that you are a responsible borrower.
How long will it be until the money is in my bank?
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.
How often do I have to pay back the loan?
You can make either weekly, fortnightly, or monthly repayments.
How long do I have to pay back the 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. If you choose this option, then your total amount will be split between that time. 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.
Do I need a co-signer to get a loan?
No, 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 high enough credit score or enough experience with lending. We don’t require this. For bad credit loans, all we need is some basic information, proof that you have an income, ID and some bank statements.
I’ve been turned down before, will this affect my chances of getting a loan with you?
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.
How much interest do you charge?
At City Finance we offer two types of bad credit loans; a SACC (small amount credit contract) and a MACC (medium amount credit contract).
You can loan between $500 and $2,000 with a SACC. The cost is a 20% upfront establishment fee (split across payments) and a monthly maintenance fee of 4%.
If you’re after more money, you can take out a MACC. With a MACC you can loan 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.
Are there any hidden fees or charges?
At City Finance we are very flexible with our payments. If you are able to pay off your loan early – or just 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 speak with you to 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.
What is a bad credit score and how do I fix it?
A credit score is a credit check that’s undertaken by banks and financial organisations to determine where it’s “safe” or “risky” to lend you money. If you’ve defaulted on payments in the past or have paid bills late, your credit score will be lower, which will make banks hesitant to lend you money.
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. You can also get a loan or credit card (if anywhere is willing to lend you money) and if you make timely payments on this, it will also improve your credit score.
How long does a default stay on a credit report?
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.