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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.

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 8am 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 work 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.

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

1 - 1 of 1
Name Product Max Loan Amount Loan Term Turnaround Time Loan Interest Establishment Fee Account Administration Fee
Save My Bacon Flex Loan
12 - 36 months
Same day
49.95% p.a
$4 per month
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.
Medium term loans from $2,000 to $5,000 with no hidden fees.

Compare up to 4 providers

1 - 7 of 7
Name Product Interest Rate (p.a.) Loan Amount Loan Term Monthly Service Fee Establishment Fee Offer
AA Money Secured Personal Loan
AA Money Secured Personal Loan
9.95% - 17.95%
$3,000 - $50,000
12 to 36 months
Requirements: NZ citizen/permanent resident, have a stable income.
Harmoney Unsecured Personal Loan
7.99% - 22.99%
$2,000 - $70,000
3, 5 or 7 years
Requirements: NZ citizen/permanent resident, have a good credit score.
FROM 6.99%
The Co-operative Bank Unsecured Personal Loan
6.99% - 17.75%
$3,000 - $50,000
6 months - 5 years
Requirements: NZ citizen/permanent resident or have a valid work visa.
Lending Crowd Personal Loan
6.45% - 19.30%
$2,000 - $200,000
2, 3 or 5 years
$350 - $650 depending on the amount borrowed
Requirements: NZ citizen/permanent resident, have a good credit score.
Nectar Unsecured Personal Loan
8.95% - 29.95%
$1,000 - $30,000
6 months to 4 years
Requirements: NZ citizen/permanent resident, have an income of $400/week, stable credit history.
Save My Bacon Unsecured Flex Loan
$2,000 - $5,000
12 to 36 months
Requirements: NZ citizen/permanent resident or have a valid work visa, have an income of at least $400/week.
Gem Unsecured Personal Loan
10.99% - 25.99%
$2,000 - $70,000
6 months to 7 years
Requirements: NZ citizen/permanent resident or hold a valid work visa, employed and have a stable income.

Compare up to 4 providers

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 applicant’s 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.

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 in the comparison table above. 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, Illion 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

More guides on Finder

  • Payday loans in Auckland

    We look at payday loans available in Auckland, including which lenders are based here and how to compare loan providers.

  • Payday loans for single parents

    Single parents often do it tough. If you are running low on cash and need to pay for things such as food, school items or even transport, a payday loan might be able to help you out of a bad situation.

  • $1,000 cash loans

    Don’t stress if you need $1,000 cash urgently. Consider applying for a loan from a payday lender for a fast financial solution.

  • Urgent cash loans

    How to find fast access to finance when you need it the most.

  • Car repair loans

    Your guide to the finance options available when you need some extra funds to repair your car.

  • Low-income loans

    Need to borrow money but you’re on a low income? There are lenders that will consider you. Find out what your options are and how much you need to earn to be eligible for a low-income loan.

  • Loans for bankrupts

    If you have declared bankruptcy and need a loan, there are options available.

  • $1,500 loans you can apply for

    Find out which lenders will approve you for a loan up to $1,500 and what you need to apply.

  • Loans for the unemployed

    If you’re receiving Work and Income payments or you’re currently in between jobs, there still may be financing solutions available for you.

  • Find a loan for $2,000

    Do you need a small loan up to $2,000? Find out about the options available to you, eligibility criteria and what to be aware of before you apply.

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8 Responses

    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!


    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
      JhezelynSeptember 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.


    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.



      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!


    Default Gravatar
    StarrJuly 4, 2018

    I need an advisor for loan request

      Avatarfinder Customer Care
      JoshuaJuly 22, 2018Staff

      Hi Starr,

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

      If you need an advisor, you may want to directly get in touch with a lender. If you go to this page, you will find your option. There’s a table on that page which can help you compare lenders. From there, please click on the “Go to site” green button to be redirected to their website and get a hold of an advisor.

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

      Have a wonderful day!


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