A guide to $5,000 loans

What to remember when comparing $5,000 loans

• Lenders consider your current financial situation over your credit score: It's common to have difficulty being approved for a personal loan from many credit providers when you have a bad credit history. Opting for a bad credit lender gives you access to lenders that look at your current financial situation when considering you for a loan. However, it's important to remember that bad credit lenders generally charge high interest and fees.
• Repayment terms: Some lenders may offer options of how to make repayments; direct debit repayments are offered by most lenders.

• Bad credit loans are high cost: Due to the high risk of this loan, the lender will usually charge higher fees. However, keep in mind fees are capped by the Australian Securities & Investments Commission (ASIC).
• Loans over $2,001 come with high interest: While loans under this amount do not come with interest rates (only set fees), loans above this amount come with rates maxed at 48% p.a.
• Disreputable lenders operate in the bad credit loans space: There are many disreputable lenders operating online that prey on people with bad credit, so it's important to thoroughly research the lender in question and consider if a bad credit loan is the best approach to the situation.

Which companies offer bad credit loans up to $5,000?

There are various options when it comes to finding up to a $5,000 loan with bad credit history. Click through to the review page to find out more details on these loan products.

How do $5,000 bad credit history loans work?

Bad credit loans work in a similar way to standard personal loans, except with different fee and interest rate structures. These loans are more expensive because the lenders need to offset the risk of lending to those with poor credit histories. However, bad credit history loans up to $5,000 have capped fees and charges.

With bad credit loans, an applicant's credit history may or may not be checked. This will be disclosed by the lender beforehand. Most lenders will check a person's credit history to ensure that they are reasonably able to repay the loan, but lenders that advertise bad credit loans will not disqualify applicants based on credit history defaults. A number of lenders use the New Payments Platform (NPP) to make payments which allows the funds to reach your bank account within 24 hours.

$5,000 loans with bad credit interest and fee caps

• One-off establishment/application fee
• Maximum annual interest rate of 48%, which includes all other fees and charges

How bad credit history affects taking out a loan

There are some important points to consider before applying for a $5,000 loan with bad credit.

• Check the eligibility criteria before applying: Lenders have set eligibility criteria that can be checked via the Finder review pages. Check the criteria online; if it's still not clear, call the lender to discuss the situation.
• Order a credit report: A credit report is the most up-to-date and accurate recording of a person's financial history and this is what lenders use to judge creditworthiness. You can order a full credit report for free with Finder.
• Compare options before applying: Make sure you'll be able to meet your loan repayments before starting the application process. It's important to remember that every application for credit you make shows up on your credit history. Therefore, it's best not to make numerous applications at the same time. It's also important to be crystal clear on the fine details of the loan before making an application or taking out a line of credit.

Compare $5,000 bad credit history loan options below

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Name	Product	Maximum loan amount	Term of Loan	Turnaround time	Arrears Fee	Costs	Fortnightly Repayment (for $5000 Loan)
Nimble Medium Loan		$5,000	up to 23 months	1 hour - conditions apply*	$15	Application fee of $400 + 47.62% p.a.	$262.75	Apply for up to $5,000 and have up to 23 months to repay.	Go to site More Info	Compare	loading Fetching your data...
Credit24 Medium Term Loan (Good Credit)		$5,000	12 to 24 months	Same day	$10	$400 establishment fee + 48% p.a. interest	$263.18	A small loan with long terms: Apply for up to $5,000 and have up to 2 years to repay.	Go to site More Info	Compare	loading Fetching your data...
Jacaranda Finance Personal Loan		$10,000	9 to 24 months	Under 1 hour - conditions apply	$35	$0 - $1,000 depending on credit	$226.47	Borrow up to $10,000 and get access to your funds in as little as 1 hour.	Go to site More Info	Compare	loading Fetching your data...
Fair Go Finance Personal Loan		$10,000	3 to 36 months	Within 24 hours	$35	from 17.9% p.a. + establishment fee of between $360 - $771 + $9 monthly fee	$238.07	A larger loan up to $10,000 you can apply for even with bad credit. Fast turnaround within 1 business day. Note: You must earn more than $500 per week.	Go to site More Info	Compare	loading Fetching your data...
Swoosh Finance		$4,584	60 days -12 months	Next business day	$35	$416 + 47% p.a. of borrowed amount	$244	A secured loan up to $4,584 you can apply for in 10 minutes. Have up to 1 years to repay what you borrow.	Go to site More Info	Compare	loading Fetching your data...

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Understanding bad credit

Generally, if someone has any black marks on their credit file (defaults or bankruptcies, for example), it's safe to assume they have some degree of "bad credit" history. However, as the degree of "bad credit" varies between people, one of the easiest ways to check if you have a bad credit rating is by checking your credit report and credit score. You can do this for free with Finder.

Having a bad credit history can make it more difficult to take out a loan and can result in lenders charging a higher interest rate.

When checking your credit report, you should look out for bad credit listings such as defaults, bankruptcies, late payments, debt agreements and excessive credit enquiries. Your credit score will also give you a good indication of your standing. The credit score you receive from Finder is from credit reporting agency Experian, and will be a number between 0 and 1,000. You can see a breakdown of the credit score ranges below from both Experian and Equifax – the lower your credit score, the more likely it is that you have bad credit.

What are the risks of $5,000 no credit check loans?

• Disreputable lenders. Check the lender has an Australian credit licence and is not charging you more than ASIC allows. The lender should be easily contactable.
• Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
• Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
• Check rates and fees. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here – lenders can charge interest rates on top of everything else.
• Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.

Frequently asked questions about $5,000 loans

Some of the questions we get asked the most often in regards to $5,000 loans include: