Bad Credit Loans
Bad credit history? Get a loan with bad credit in 3 simple steps!
- Bad credit loans Australia-wide – borrow up to $10,000
- Fast online application and same-day funding if approved
- Flexible repayments – weekly, fortnightly or monthly
- Centrelink, pension and low-income applicants considered
Being knocked back by a bank because of a low credit score can be frustrating, especially when your current situation is nothing like your past. Bad credit loans exist precisely for this reason. At City Finance, we look at who you are today, not what your credit file says about yesterday.
We offer bad credit loans in Australia up to $10,000, with a straightforward online application, fast decisions, and same-day funding in most cases. Whether you need to cover an unexpected bill, repair a car, or manage a short-term cash shortfall, loans for bad credit through City Finance give you a real option when the banks have said no.
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.
Despite the name, bad credit loans aren’t exclusively for people with terrible scores. They’re also a good fit for people with limited credit history, those who have been through financial hardship, and anyone who doesn’t meet standard bank lending criteria. If you’ve been rejected elsewhere, loans for bad credit in Australia offer an alternative path.
At City Finance, our bad credit loans are unsecured, meaning no asset or collateral is required. The money goes into your bank account as a lump sum, and you repay it over a term you agree to upfront, with no hidden fees and no penalty for paying it off early.
How it works
Here’s a quick rundown on what to expect when you apply for a bad credit cash loan.
ONLINE APPLICATION
To apply for a loan with City Finance, simply fill in our online application form here. It’s quick and easy, you’ll just need to select how much you’d like to borrow, your preferred repayment term, provide some personal details, and verify your identity.
CONFIRMATION
Most customers receive a response within a couple of business hours of applying. In some cases, our team may get in touch to request additional information to finalise your loan.
FUNDING
Once your loan is approved and the contract is signed, most customers receive their funds within 60 seconds of signing the contract, so you can get on with what matters sooner. Repayments will be made weekly, fortnightly or monthly, depending on your selected plan.
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 21 years old or over
What Is a Credit Score – and What’s Considered Bad?
A credit score is a number assigned to you based on your financial behaviour – payment history, borrowing patterns, outstanding debts, and more. In Australia, scores are generated by three main credit bureaus: Illion, Equifax, and Experian. Each uses a slightly different scale, but the general brackets are consistent.
|
Credit Score Range |
Illion |
Equifax |
Experian |
|
Excellent |
800 – 1,000 |
833 – 1,200 |
800 – 1,000 |
|
Good |
700 – 799 |
726 – 832 |
700 – 799 |
|
Fair |
625 – 699 |
622 – 725 |
625 – 699 |
|
Poor |
550 – 624 |
510 – 621 |
550 – 624 |
|
Very Poor |
0 – 549 |
0 – 509 |
0 – 549 |
Most Australian banks require a score of 700 or higher before approving a personal loan. If your score falls below that threshold, you’re likely to be declined, regardless of your current income or circumstances.
That’s where loans for bad credit Australia-wide, like those offered through City Finance, come in. We don’t make decisions based on a single number. We look at your current income, your expenses, and whether the repayments are genuinely manageable for you right now.
How Does a Credit Score Drop?
Credit scores don’t fall overnight; they tend to decline gradually through a combination of factors, some of which people aren’t even aware of. Common causes include:
- Late or missed payments on loans, credit cards, or bills
- Defaults – debts over $150 that are more than 60 days overdue
- Multiple loan or credit card applications in a short period
- High credit card balances, even when repayments are being made
- Co-signing a loan for someone who then defaults
- Unpaid bills sent to collections
A default stays on your credit report for five years. If a lender classifies the debt as a clearout (meaning they believe you had no intention of repaying), it remains for seven years. This is why people who went through financial difficulties years ago can still struggle to get a loan with bad credit from mainstream lenders long after their situation has stabilised.
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
A broken-down car can cost you more than the repair bill – it can cost you your job. Car repair loans are among the most common uses of bad credit loans Australia-wide, particularly for people who rely on their vehicle for work. Get the repair done and pay it back over time.
Medical and dental expenses
Out-of-pocket healthcare costs can catch you off guard – ambulance bills, specialist gaps, dental work, prescriptions. When health can’t wait, a bad credit loan can cover the cost so you get the treatment you need without delay.
Rental bond
A rental bond is typically four weeks’ rent upfront, which is a significant lump sum on top of moving costs and rent in advance. A small bad credit loan can cover the bond, so your move isn’t derailed by a cash flow problem.
Furniture or white goods
Setting up a new home, replacing a broken fridge, or getting the basics in place after a move are all practical reasons to take out loans with low credit. Rather than renting and throwing money away, a furniture loan lets you own the item and pay it off gradually.
Home repairs
A leaking roof, a broken hot water system, or an electrical issue can’t always wait. If getting a loan with bad credit means you can fix the problem now rather than letting it escalate into something more expensive, it’s often the practical call.
Travel loans
Sometimes, a break is what you genuinely need to reset. If flights or accommodation are just out of reach right now, a bad credit loan can cover the cost and let you pay it back in manageable instalments.
Vet bills
Emergency vet costs are one of those expenses that hit hard and fast. Loans for bad credit in Australia can cover urgent veterinary treatment, so your pet gets the care they need without putting you in an impossible financial position.
Is a Bad Credit Loan Right for You?
Loans for bad credit in Australia are a practical option when the need is genuine and the repayments are manageable. Before applying, it’s worth being honest about what you can comfortably afford to repay each week or fortnight. Our team will go through this with you.
Bad credit loans do carry higher fees than standard bank products, which reflects the additional risk involved in lending to people outside traditional criteria. That’s worth understanding before you commit. We’ll always make sure the full cost is clear before you sign anything.
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Don't let a low credit score rule out your options. City Finance offers bad credit loans Australia-wide up to $10,000, with fast approval and same-day funding for most applicants. Apply online; it only takes a few minutes.
Bad Credit FAQs
What are bad credit loans?
Bad credit loans are personal loans available to people who don’t meet the standard lending criteria of banks and mainstream lenders – typically due to a low credit score, missed payments, defaults, or limited credit history. Loans for bad credit in Australia assess your current income and repayment capacity rather than relying solely on your credit file.
What is 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 1200.
What is considered a bad credit score?
In Australia, most banks require a score of 700 or above to approve a personal loan. Scores below 700 – rated Fair, Poor or Very Poor across the Illion, Equifax and Experian scales – are generally considered high-risk by mainstream lenders. See the credit score table for a full breakdown:
| Credit Score Range | Illion | Equifax | Experian |
| Excellent | 800 – 1000 | 833 – 1200 | 800 – 1000 |
| Good | 700 – 799 | 726 – 832 | 700 – 799 |
| Fair | 625 – 699 | 622 – 725 | 625 – 699 |
| Poor | 550 – 624 | 510 – 621 | 550 – 624 |
| Very Poor | 0 -549 | 0 – 509 | 0 – 549 |
How can I check my credit score?
A free credit report check won’t affect your score. It’s worth knowing your score before you apply so there are no surprises.You can find a tool to check your credit score like this one.
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 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
How can I improve a bad credit score?
Information on how your credit scores work is available here.
Can a loan with you improve my credit score?
Making every repayment on time, keeping existing credit card balances low, and avoiding multiple simultaneous loan applications can all contribute to gradual score improvement over time. A City Finance bad credit loan, repaid consistently, may have a positive effect on your credit file, but the primary purpose of loans with low credit is to address an immediate financial need, not as a credit-building strategy.
For information on how a City Finance loan may impact your credit score, click here.
Will applying for a bad credit loan affect my credit score?
City Finance performs a soft credit check when you first apply – this does not impact your credit score. A hard inquiry is only recorded once you accept the loan terms, so you can explore your options without risk to your score.
Am I eligible for a bad credit loan?
Yes, as long as you are aged 21 or over. Our small loans for bad credit are specifically designed to help close the gap in the market for consumers who are either excluded from, or who simply choose not to obtain cash loans from mainstream financiers.
How long will it be until the money is in my bank?
Often, when a customer applies for a 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, in many cases, you’ll receive the funds within 60 seconds of signing the contract.
How long do I have to pay back the loan?
This is really flexible and can be tailored to fit your needs. For loans under $2000, the maximum time you’ll have to pay your 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. For medium-sized loans between $2001 – $5,000, you’ll have up to 104 weeks to pay back your loan. If you’re able, we recommend paying it off in a shorter term to save on fees and interest.
Do I need a co-signer to get a loan?
No. City Finance does not require a co-signer or guarantor as long as you’re over 21 and meet our standard eligibility criteria. Traditional banks often require a guarantor for applicants with poor credit history, our bad credit loans Australia process does not.
I've been turned down before, can I still apply?
Yes. City Finance has helped thousands of Australians who were previously knocked back by banks and other financial institutions. Being declined elsewhere doesn’t affect your eligibility with us. We assess each bad credit loan application on its own merits, based on your current circumstances.
What information do we need to process your bad credit loan application?
At City Finance, the process of applying for a credit loan is simple. We don’t need a bunch of different documents, all we require is the following:
- ID document number, such as passport or medicare card
- 90 Days Banking History
- Proof of income (Eg a payslip or Centrelink benefits statement) – If you cannot provide A or B
How much interest do you charge?
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 credit tends to be slightly higher.
At City Finance, we offer two types of credit loans;
- 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.
- 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.
Are there any hidden fees or charges?
No. City Finance discloses all establishment and maintenance fees before you sign. There are no charges for early repayment or additional payments. If you can’t make a scheduled payment, contact us before the due date and we’ll work out a plan, the only fee that applies is a dishonour fee when a payment fails without notice.
How long does a default stay on a credit report?
A default – a debt over $150 that is more than 60 days overdue – stays on your credit report for five years. If the lender classifies the debt as a clearout (meaning they believe you had no intention of repaying), it stays for seven years. This is why people who experienced financial difficulty several years ago can still face difficulty getting a loan with bad credit through traditional lenders.
You can find out more information about defaults here.
