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.

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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. If you’re unemployed and need a loan, read our guide here.

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

Updated November 15th, 2019
Name Product Maximum Loan Amount Loan Term Turnaround Time Loan Interest Minimum Monthly Repayment Establishment Fee Account Administration Fee
$5,000
Up to 368 days
Within the same day
From 149.65% p.a.
N/A
$21.23
N/A
Borrow up to $5,000 and enjoy a flexible repayment plan. Eligibility: Be over 18, have an ongoing source of income, working visa applicants accepted (conditions apply).

Compare up to 4 providers

Updated November 15th, 2019
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
6.99% - 29.99%
$2,000
$70,000
Up to 60 months
$0
$200-$450 depending on loan size
Apply for an unsecured personal loan up to $70,000 with no early repayment fees. Eligibility: Be a NZ resident/citizen and have a good credit score.
9.15% - 22.95%
$1,000
$25,000
Up to 7 years
$0
$250
An unsecured personal loan up to $25,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
8.90% - 20.95%
$1,000
$50,000
Up to 7 years
$0
$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.
6.69%-18.20%
$2,000
$200,000
3 or 5 years
$0
$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.
13.95% - 23.95%
$1,000
$50,000
Up to 60 months
$12
$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 $400 per week.
9.95% - 23.95%
$1,000
$20,000
Up to 60 months
$12
$95-$595 depending on loan size
Borrow up to $20,000 and apply online within 5 minutes. Eligibility: Be over 21, hold permanent NZ residency, have collateral/security, earn at least $450 per week.

Compare up to 4 providers

Tips on being approved for a bad credit loan

There is no surefire way to guarantee you will 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.com/nz 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 the leading credit reporting agencies in New Zealand.

  • 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.

Options for an unsecured $5,000 loan with a good credit rating

If you have good credit, you may 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 not have to attach an asset as a guarantee.

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 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.

Quick ways to borrow money

Type of lenderAvg. interest rateAvg. repaymentTurnaround time
Traditional bank14% p.a.$1041.93*1-3 business days
Online lender39.20% p.a.$672.24^1 hour – conditions apply
Payday loan319.38% p.a.$1,280~Same day
Peer-to-peer loan8.86% 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 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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