Bad Credit Loans
Bad credit history? Secure a loan in 3 simple steps!
- Bad Credit loans up to $5,000
- Fast Online Application & approval
- If approved – receive funds the same day!
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.
ONLINE APPLICATION
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.
CONFIRMATION
Once we receive your information, our team will contact 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.
FUNDING
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 21 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.
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 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 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?
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.
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?
For information on how a City Finance loan may impact your credit score, click here.
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 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 can help! Unfortunately, if you are declared bankrupt or in a Part 9 debt agreement we cannot assist for 12 months after discharge.
Could 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, 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.
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 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 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. For medium size loans between $2001 – $5000, 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, we don’t require this as long as you are over 21. 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.
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.
What 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
- Proof of income (Eg a payslip or Centrelink benefits statement)
- 90 Days Banking History
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 bad credit tends to be slightly higher.
At City Finance we offer two types of bad 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?
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.
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.
