How to be approved for a $5,000 loan with good or bad credit

Need to borrow up to $5,000 today? Read our guide for all your loan options in New Zealand.

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When you have a bad credit history, you’re usually not eligible for a loan from a bank or traditional credit lender. However, there are loan options available. You need to show you can repay the loan, by providing evidence of a regular income, whether that’s through employment or Work and Income payments.

⚠️ Warning: be cautious with short-term loans

If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the MoneyTalks helpline operated by FinCap on 0800 345 123. It is open from 8:00am to 5pm, Monday to Friday and 10am to 2pm Saturday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged.

Alternatives to short-term loans

Consider these alternatives before applying for a payday loan:

  • Use online Government resources. The Commerce Commission New Zealand website explains how loans works and what to be aware of when borrowing from a lender.
  • Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
  • Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
  • Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.
Promoted
Teensy Payday Loan
Teensy Payday Loan
    • Payday loans from $400 to $900 with an interest rate of 292% p.a.
    • Loan term: 6 - 16 weeks
    • Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.

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

Bad credit loans work similarly to personal loans, although they have different fees and interest rates. However, as loan providers need to offset the risk of lending to those with a bad credit history, these loans are more expensive.

A loan applicants credit history may or may not be checked, and this is disclosed by the lender before you apply. A loan provider checks your credit history to ensure you can reasonably repay the loan. However, lenders in the bad credit loan sphere do not disqualify applicants due to defaults on their credit history.

Good credit and bad credit loans for up to $5,000 you could apply for

Name Product Max Loan Amount Loan Term Turnaround Time Loan Interest Establishment Fee Account Administration Fee
Save My Bacon Mini Loan
$750
1-8 weeks
Same day
49.95% p.a
$95
$10
Short term loans up to $750 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
Teensy Cash Loan
$1,400
6-12 months
Same day
39.95% p.a.
$95
$15
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Moola Payday Loan
$2,000
Up to 184 days
Same day
292% p.a.
$0
N/A
Borrow up to $2,000 and enjoy a flexible repayment plan. Eligibility: Be 18 or over, have an ongoing source of income, working visa applicants accepted (conditions apply).
Teensy Payday Loan
$900
6-16 weeks
Same day
292% p.a.
$0
N/A
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Save My Bacon Flex Loan
$5,000
8-52 weeks
Same day
49.95% p.a
$95
$10
Medium term loans from $1,000 to $5,000 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
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Data indicated here is updated regularly
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
Harmoney Unsecured Personal Loan
6.99% - 29.99%
$2,000
$50,000
36 to 60 months
N/A
$200-$450 depending on loan size
Apply for an unsecured personal loan up to $50,000 with no early repayment fees. Eligibility: Be a NZ resident/citizen and have a good credit score.
Pioneer Finance Personal Loan
11.95% - 27.95%
$1,000
$100,000
Up to 7 years
$12
$270 - $780 depending on size and security
Secured personal loans from $1,000 - $100,000. Eligibility: Be 18+ (may need a guarantor); be a NZ citizen, resident or have a relevant work visa; have a regular source of income
Nectar Personal Loan
8.95% - 29.95%
$1,000
$20,000
6 months to 4 years
N/A
$240
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online. Eligibility: Must be 18+, an NZ citizen or permanent resident, and have an income of $400 per week or more (after tax).
Admiral Finance Secured Personal Loan
13.95% - 23.95%
$1,000
$50,000
6 to 60 months
N/A
$125-$595 depending on loan size
A secured loan from $1,000 to $50,000 with a quick online application process. Eligibility: Be an 18+ permanent NZ resident, have collateral/security, earn at least $450 per week.
Lending Crowd Personal Loan
6.49%-16.78%
$2,000
$200,000
3 or 5 years
N/A
$250-$1,450 depending on the amount borrowed
A secured personal loan from $2,000 to $200,000 with repayment instalment options. Eligibility: Be an 18+ NZ permanent resident, earn $30,000 or more, have a good credit history and collateral/security.
QuickLoans Personal Loan
9.95% - 23.95%
$1,000
$20,000
6 to 60 months
$12
$95-$595 depending on loan size
Borrow up to $20,000 and apply online within 5 minutes. Eligibility: Be over 18, hold permanent NZ residency, have collateral/security, earn at least $450 per week.
Teensy Personal Loan
22.95% - 29.95%
$1,500
$5,000
6-24 months
$15
$195
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Save My Bacon Flex Loan
49.95%
$1,000
$5,000
8 - 52 weeks
N/A
$95
Medium term loans from $1,000 to $5,000 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
NZCU South Personal Loan (Unsecured)
10.90% – 28.90%
$2,000
$50,000
Up to 7 years
N/A
$250
An unsecured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
ANZ Personal Loan
12.90%
$3,000
$40,000
6 months to 7 years
N/A
$115
NZCU South Personal Loan (Secured)
9.90% - 28.90%
$2,000
$50,000
Up to 7 years
N/A
$250
A secured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
BNZ Advanced Personal Loan
12.65% (students/graduates) - 17.85% (standard)
$1,000
$30,000
3 months to 5 years
N/A
$50
Kiwibank Personal Loan
13.95% - 18.95%
$2,000
N/A
6 months to 7 years
N/A
$240, $0 for Graduate Pack customers
Loan Spot Personal Loan
9.95% - 24.95%
$3,000
$50,000
1-5 years
N/A
$276
Personal loans at fixed interest rates starting from 9.95% p.a and get funded within 48 hours.
MyFinance Secured Personal Loan
13.95% to 24.95%
$1,000
$30,000
Up to 48 months
N/A
$220-$420 depending on loan size
Secured personal loans from $1,000 with competitive interest rates. Eligibility: Be 18+ and an NZ resident
Gem Personal Loan
12.99% - 24.99%
$2,000
N/A
6 months to 7 years
N/A
$240
The Co-operative Bank Personal Loan
6.99% - 19.99%
$3,000
$50,000
Up to 5 years
N/A
$200
Max Loans Personal Loan
9.95% - 29.95%
$1,000
$50,000
Up to 7 years
N/A
Varies with lender
ASB Personal Loan
12.95% - 19.95%
$2,000
N/A
Up to 7 years
$2
$99
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Tips on being approved for a bad credit loan

There is no surefire way to guarantee you can receive approval for a fast cash loan. When you’re considering applying and your credit history isn’t perfect, bear the following in mind:

  • Check the eligibility criteria before applying

Lenders have set eligibility criteria, which you can check on Finder NZ’s review pages. Check to see if you meet these criteria, and if you’re unsure, 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 accurate record of your financial account. It’s what lenders use to judge your creditworthiness. You can order a free copy of your credit file from New Zealand’s credit reporting agencies, Centrix, lion or Equifax.

  • Compare your bad credit loan options before you apply

Every application you make shows on your credit file, so make sure you compare your options before you ask to minimise the number you make.

What to consider when comparing $5,000 loans

  • The convenience of an online application
    The convenience of online application forms and quick approval systems can save time. You also have the chance to compare a range of credit providers, which improves your choice.
  • There are minimal or no credit checks
    It can be difficult receiving approval for a personal loan if you have a bad credit history. A bad credit loan gives you access to lenders who look at your current financial situation when considering you for a loan. If you have significant credit problems, you can look at no credit check loans.
  • Simple repayment terms
    You usually make the repayments when you receive your pay, and some lenders give you options on how to make repayments. Most lenders offer direct debit repayments, so you don’t have to worry about making the repayments yourself – but you do need the money available in your account.
  • Bad credit loans are high-cost
    Due to the high risk of these loans, the lenders usually charge higher fees.
  • Disreputable lenders operate in the bad credit loans space
    Many dishonest lenders operate online, and prey on people with bad credit, so make sure you evaluate the lender before you apply.

Things to avoid with bad credit loans

There are risks associated with loans for people with bad credit. Avoid the pitfalls outlined below:

  • Not being cautious. Make sure you only choose a reputable company.
  • Not considering the affordability. Think twice before applying for a bad credit loan up to $5,000. The repayment period is shorter than standard loans, which means your repayments are quite high. Lenders usually provide calculators to show an indication of your repayments.
  • Not considering the fees and the interest rate. Lenders 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. Make sure you understand what the lender charges for late payments or if you default on the loan.
  • Disreputable lenders. The lender should be easy to contact and check that it has a credit licence.
  • Unaffordable repayments. Consider how much the regular repayment is and that you can repay the loan during its term. If you fail to repay on time the loan provider can charge extra fees. Also, repayment periods for bad credit loans are usually shorter than regular personal loans.
  • Multiple applications. Although bad credit lenders may not take your credit history into account, multiple applications in a short time have a negative impact on your credit score, as each loan application appears on your credit report.
  • Long-term repercussions and legal issues. Once you sign for a loan agreement, you are is bound by its conditions until you fully repay the loan, including all associated rates and fees. Bad credit loans are usually unsecured, so the lender can start legal proceedings if you can’t repay.

Quick ways to borrow money

Type of lenderInterest rate rangeTurnaround time
Traditional bank6.99% to 22.90% p.a.1-3 business days
Online lender6.99% to 49.95% p.a.1 hour – conditions apply
Payday loan39.99% to 292% p.a.Same day
Peer-to-peer loan6.49% to 18% p.a.Next business day

Frequently asked questions about bad credit loans

Options on borrowing smaller amounts like $1000

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22 Responses

  1. Default Gravatar
    RaychillMarch 12, 2019

    Can I use my car for a loan as collateral?

    • Avatarfinder Customer Care
      JoshuaMarch 13, 2019Staff

      Hi Raychill,

      Thanks for getting in touch with Finder. I hope all is well with you. 😃

      Yes, you can use your car as collateral. In this case, you would need to apply for a secured personal loan. You can check this page for more information. On that page, you will see a table that allows you to conveniently compare secured personal loans based on interest rate, maximum loan amount, and loan term, to name a few. Once you found the right one for you, click on the “Go to site” green button to learn more or initiate your application.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    SheaFebruary 1, 2019

    Do u do people on benefits and bad credit

    • Avatarfinder Customer Care
      ValFebruary 2, 2019Staff

      Hi Shea,

      Thank you for leaving a question. For a lender to approve a short-term loan, you will need to meet eligibility criteria and provide documentation. If there is a lender of your preference, they can evaluate your status depending on how much benefits you get and how stable it is.
      Eligibility criteria is usually:

      – Be 18 years of age or older
      – Earn an income that supports the repayment of the loan
      – Have a job, with a steady income (or sufficient benefits)
      – Be regularly paid, into your bank account (not in cash) either daily, weekly or monthly
      – Not be self-employed (some lenders may make an exception)
      If you have bad credit, you need to prove your current financial situation is stable and reliable.

      Please note that meeting the eligibility requirements does not guarantee approval of a loan

      Hope this helps.

      Regards,
      Val

  3. Default Gravatar
    AnonDecember 14, 2018

    I’m currently a beneficiary that receives $580 per week, I have bad credit, I have 1 other short-term loan that’s paid off in 2weeks.
    Do I qualify for a loan?

    • Avatarfinder Customer Care
      JoshuaDecember 17, 2018Staff

      Hi Anon,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Yes, you could still be qualified for a loan. However, it is worth noting that some lenders would consider your benefit payouts as a form of income but they might have stricter eligibility requirements. Thus, it would be a good idea to check the eligibility criteria before applying and discuss your needs with the lender directly.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  4. Default Gravatar
    MelDecember 9, 2018

    Hi. I need a secured loan of $5000. I have a motor vehicle as security. Although I went through hardship due to my parent’s illnesses I had to borrow money to fly to South Africa. It really put me back. I earn $560 per week and my car (which is paid off) can be my guarantee. I hope you can assist me. Regards.

    • Avatarfinder Customer Care
      JoshuaDecember 17, 2018Staff

      Hi Mel,

      Thanks for getting in touch with finder. I’m sorry to hear about the hardship you went through.

      If you need a secured loan, please go to this page. On that page, you will be able to compare secured personal loans with the use of our table. You can compare based on interest rate, loan amount, and loan term to name a few. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  5. Default Gravatar
    TaiDecember 7, 2018

    What do I need to apply for a loan 5000, please?

    • Avatarfinder Customer Care
      JoshuaDecember 12, 2018Staff

      Hi Tai,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      There’s no sure-fire way for you to get approved for a loan. However, there are a few things you can do to increase your chance of getting approved. The bottom line is that you should be able to prove to the lender that you are able to make repayments. Provide the necessary documents and requirements. Be sure that you also read the eligibility requirements before you apply.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  6. Default Gravatar
    AnonymousNovember 28, 2018

    I am on a work and income benefit and I need a payday loan of $250, what is the best company to apply in New Zealand?

    • Avatarfinder Customer Care
      JhezDecember 7, 2018Staff

      Hello,

      Thank you for your comment.

      I understand that you’re looking for a payday loan lender. We have two lenders listed on the table on our payday loan page. Please use the page as your guide in comparing the lenders, the interest rates and the purpose. After comparing, kindly click the Go to Site button of the lender that you preferred. You will then be redirected to the lender’s website to apply.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  7. Default Gravatar
    SandyOctober 2, 2018

    Am I able to get a 5000 credit loan

    • Avatarfinder Customer Care
      joelmarceloOctober 3, 2018Staff

      Hi Sandy,

      Thanks for leaving a question on finder.

      Lenders that offer “payday loans” or short-term loans differ from institutions and other lenders in their application process and criteria. You can usually apply for these loans online and receive a response quickly. For a lender to approve a short-term loan, you will need to meet eligibility criteria and provide documentation. Eligibility criteria is usually:

      – Be 18 years of age or older
      – Earn an income that supports the repayment of the loan
      – Have a job, with a steady income (or sufficient benefits)
      – Be regularly paid, into your bank account (not in cash) either daily, weekly or monthly
      – Not be self-employed (some lenders may make an exception)
      – If you have bad credit, you need to prove your current financial situation is stable and reliable.

      Please note that meeting the eligibility requirements does not guarantee approval of a loan. Also, the lenders featured in this page you are in can only lend 600 to 1000$.

      You can check out the lender featured on the table above. Once you have decided on the suited loan for your needs, you may click on the green ‘Go to site’ button to submit your application or know more about the loan offer.

      Please send me a message if you need anything else. :)

      Cheers,
      Joel

  8. Default Gravatar
    TyroneSeptember 9, 2018

    Hey just wanted to know if I can get a loan what’s the minimum amount I can borrow

    • Avatarfinder Customer Care
      JoshuaSeptember 10, 2018Staff

      Hi Tyrone,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Generally, lenders take into consideration your general financial situation and your ability to pay the money you owe. They will first ask for different documents and requirements. From there, lenders will base their decision on how much money they can lend to you.

      What you can do is explore and compare your loan options before you apply. Please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  9. Default Gravatar
    LinaAugust 31, 2018

    I have a wedding in a month and I saved for this wedding but I just need a bit extra cash for a few more things on my list. Can you help out with my credit for a $5000 loan? Please.

    • Avatarfinder Customer Care
      JhezSeptember 2, 2018Staff

      Hi Lina,

      Thank you for your comment.

      Congratulations on your upcoming wedding. The cost of a wedding is never easy. Anyway, when you apply for a loan amount of $5000, lenders will usually check your capacity to repay a loan.

      Hence, as long as you meet the eligibility criteria and the requirements set by the lender, you could be considered for a loan.

      There are lenders listed on this page that may consider you for a loan. Please click the Go to Site button to apply. Ensure that you have met the eligibility criteria. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  10. Default Gravatar
    GrantAugust 17, 2018

    I need to borrow $5000.00 to purchase a 2008 Nissan Caravan that I intend to convert into a camper and later into a mobile home.

    Doing this will reduce a personal expence (board) of $180.00 per week, excluding expences, however will incur motor vehcle operating expences estimated to be approxiately $60.00pw.

    I am currently paying off a loan secured when my income considerably less than at present income of $947.66.

    Are you able to assist with this matter please.

    Regards

    Grant

    • Avatarfinder Customer Care
      JoshuaAugust 22, 2018Staff

      Hi Grant,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Based on the information you gave, it is still possible for you to get approved for a $5000 personal loan provided that you meet the eligibility criteria of the lender. Best is to read about the lender as well as directly get in touch with them to further know your eligibility.

      Moreover, it would be helpful to determine if you really need to borrow money. In most cases, borrowing small amounts of money can be expensive and may not solve your money problems.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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