Bad credit personal loans - guaranteed approval

Searching for "very bad credit loans guaranteed approval"? No lender can honestly promise guaranteed approval — see why below — but plenty of Australian lenders specialise in assessing applicants with a poor credit history on their current ability to repay, not just a credit score.

Are there any guaranteed loans for bad credit?

No. Due to responsible lending obligations, they don't exist. Under the National Consumer Credit Laws, financial institutions are legally not allowed to lend to anyone they deem unable to repay a loan. And rightfully so. Legalities aside, it would be unethical to allow someone to borrow money that they were unable to repay.

Can I get a loan without a credit check?

Yes! It is possible to apply for a small loan with some lenders and not be subject to a credit check. But keep in mind that there are many lenders offering bad credit loans who assess each applicant on a case-by-case basis. Having a bad credit score is no longer the end of the line for people needing a loan so it may not be necessary for you to avoid a credit check.

A no credit check lender will assess your financial situation without requesting a copy of your credit report but the loan details will still be added to your credit file. To decide if you can afford to repay the loan, the lender will go over the last three months of your bank statements. To be eligible you'll need to be earning a regular income through employment earnings or Centrelink payments.

NILS. The No Interest Loan Scheme (NILS) is a not-for-profit providing finance of up to $1,500 to low-income earners to use for the purchase of essential goods and services. There are no interest, fees or charges on these loans, You simply repay what you borrow over a repayment period of 12 to 18 months. There is no credit check for a NILS loan, but you must have the capacity to repay the loan.

Can I get a loan with bad credit?

Sure can. As stated above, a NILS loan is available without a credit check and available to people with bad credit (providing they are able to repay it) but there are also many lenders who will provide a loan of up to $50,000 to applicants with bad credit.

There are some non-bank lenders who offer bad credit personal loans for people with bad credit scores. Although they are not guaranteed, these lenders are very lenient when assessing the applicant's history and look at more than just the credit score when making a decision. Your overall income and expenses are taken into account to decide if you are financially able to afford a loan.

The interest rates of bad credit personal loans are often risk-based meaning the riskier the lender deems the borrower to be, the higher the interest rate will be. For a really risky borrower, the interest rates could even reach the 30% mark. Because the interest rates can be so high with bad credit loans, it's important to shop around to find a competitive rate.

Who will lend me money with a bad credit score?

For small loans, Payday lenders will happily lend to people with a bad credit score but beware of the high fees. They usually charge a 20% establishment fee and a 4% monthly fee.

For larger personal loans there are lenders, such as Australian Lending Centre who offer unsecured and secured loans at varying costs. The interest rates for bad credit loans are much higher than regular personal loans but you could get a lower interest rate if you have assets to offer as security for a secured loan.

Related: If you need cash urgently, see our emergency cash loans with no credit check guide, or compare bad credit car loans and loan options for pensioners with bad credit.

More help: Read our full bad credit loans guide for a side-by-side look at every bad credit loan type in Australia.

Looking for something faster or smaller? Compare instant cash loans for same-day small amounts, or no credit check loans for lenders that look beyond your credit score.