How to be approved for a $5000 loan with bad credit

Information verified correct on February 22nd, 2017

finder money small-450x250Need to borrow up to $5,000 today? A guide on all of your personal loan options, even if you have bad credit.

When you have a poor credit history, you’re usually not eligible for a loan from a bank or traditional credit lender. However, there are loan options available. You’ll just need to show that you can repay the loan by providing evidence of a regular income.

Loans for up to $5,000 you could apply for

The loans below allow you to borrow cash for a short period when you may need the emergency money.

Rates last updated February 22nd, 2017
Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
Interest Rate (p.a.) Maximum Loan Amount Term of Loan Turnaround Time
NetCredit Installment Loan
Build a positive credit history and borrow up to $10,000 with Net Credit.
From 34% (variable) $10,000 Varies upon state 1 business day Same rates
everywhere
Go to site More
From 5.99% (variable) $5,000 Varies based on lender Varies based on lender Same rates
everywhere
Go to site More
Accredited Debt Relief
Accredited Debt Relief can help you lower your monthly payments and interest rates or get out from serious debt. They offer free consultations at 1-877-569-5675.
From 0% (variable) Varies based on lender On average a settlement lasts 2-4 years. Varies based on lender Same rates
everywhere
Go to site More
SWIFT Payday Loan
Making it easy to get cash in a pinch.
From (variable) $1,000 Varies by lender Next business day Same rates
everywhere
Go to site More

Have we missed anything in the comparison table? Tell us

  • If the provider quotes a different rate to the one above please let us know

Tips on being approved for a loan with bad credit

There is no one surefire way to ensure you are approved for a loan application. When you’re considering applying for a loan and your credit history isn’t perfect, keep the following tips in mind:

  • Check the eligibility criteria before applying

Lenders have set eligibility criteria which you can check on finder.com.au review pages. Check to see if you meet these criteria, and if you’re unsure you can call the lender to discuss your situation.

  • Order a copy of your credit file 

While you may think you have a good idea of your credit history, your credit file is the only true record of your financial history and what lender’s will use to judge your creditworthiness. You can order a free copy of your credit file from the main credit reporting agencies in the United States.

  • Compare your loan options before you apply

Every application you make shows up on your credit file, so make sure you compare your options before you apply to minimize the amount of applications you make.

Options for an unsecured $5000 loan with a good credit rating

If you don’t have bad credit you can be eligible for a loan from a bank, credit union or standalone lender at a more competitive rate than bad credit loans. You may be able to borrow up to a limit of $5,000 and do not have to attach an asset as a guarantee.

Compare a range of options below if you need to borrow $5000.

Rates last updated February 22nd, 2017
$
Interest Rate (p.a.) Min Loan Amount Loan Term Monthly Repayment
Payoff Personal Loans
Stress-free loan with APR starting at 8 and a 35000 credit line
From 8% (variable) $5,000 2 to 5 years Go to site More
SoFi Personal Loan
Borrow up to $100,000 with a competitive APR and no fees.
From 4.91% (fixed) $5,000 3 to 7 years Go to site More
LightStream Personal Loans
You could borrow up to $100,000 with rates starting from 2.19% fixed.
From 2.19% (fixed) $5,000 1 to 7 years Go to site More

Have we missed anything in the comparison table? Tell us

  • If the provider quotes a different rate to the one above please let us know

What to consider when comparing $5000 loans

Pros

  • The convenience of an online application
    The convenience of online application forms and quick approval systems can save you time. You’ll also have a chance to compare a range of credit providers, improving your choices.
  • There are minimal or no credit checks
    It’s common practice to find difficulty being approved for a personal loan from other credit providers if you’ve got a bad credit history. Getting a bad credit unsecured loan gives you access to lenders who look at your current financial situation when considering you for a loan, and if you have major credit problems you can consider a no credit check loan.
  • The simple repayment terms
    You’ll generally have your repayments lined up to when you get paid, and some lenders will give you the option of how to make repayments. Direct debit repayments are offered by most lenders as you don’t have to worry about making the repayments yourself, you just need the money available in your account.

Cons

  • The loans are high-cost
    Due to high risk of this loan the lender will usually charge a higher fees. However, keep in mind fees are capped by 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 who prey on people with bad credit, so make sure you evaluate the lender before you apply.

Things to avoid with bad credit unsecured loans

There are quite a few risks associated with these types of loans. Avoid the pitfalls outlined below:

  • Not being cautious. Taking out a bad credit personal loan can come with high fees and inflexibility.
  • Not considering the affordability. Make sure you think twice before applying for a bad credit unsecured personal loan up to $5,000 – the repayment period is a lot shorter than standard loans which means your repayments are quite high. Lenders usually offer calculators to show an indication of your repayments.
  • Not considering the fees as well as the interest rate. Lenders may charge you an interest rate as well as fees and other charges. Check these before you apply and consider the total cost of the loan.

Quick ways to borrow money

Type of LenderAvg. Interest RateAvg. RepaymentTurnaround Time
Traditional Bank 14% p.a. $1,041.93* 1-3 business days
Online Lender 39.20% p.a. $672.24^ 1 hour – conditions apply
Payday Loan 319.38% p.a. $1,280~ Same day
Peer-to-Peer Loan 8.86% p.a. $955.21* Next business day

*average repayment based on a $30,000 loan over 3 years | ^ based on a $3,000 loan over 220 days | ~ based on a $1000 loan over 32 days

Frequently asked questions

How do I apply for a bad credit unsecured loan?

You can apply for any of the lenders on this page by clicking “Go to Site”. If you don’t see this button you can apply directly on the lender’s website.

What happens after I send my application?

This will differ between lenders, but you will usually receive a notification as to whether you have been approved or not along with further instructions for the next steps.

Are my details secure?

When you apply for a loan online up to $5,000, your details are securely transmitted over an encrypted connection. The majority of sites you apply with use 128-bit SSL encryption to ensure your details are safe and secure.

Can I get a $5,000 loan if I am unemployed?

When an institution lends you money, they want to be certain that you can repay back the debt within the allocated timeframe. If you are unemployed your income may be limited unless you are receiving benefits. If the majority of your income comes from welfare payments you may be still eligible for a personal loan – but be sure to check with the lender.

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