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

Need to borrow up to $5,000 today? Read our guide for all of your loan options, even if you have bad credit.

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.

Tips on receiving approval 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 and what lender’s 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 $5000 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.

How much do $5,000 loans cost?

  • NZCU South offers a range of loans from $1,000, with interest rates being from 9.95% to 18.95% and an application fee of $245. An example of a loan from NZCU South will cost you $26.66 per week, if you borrow $5,000 at an interest rate of 13.95% p.a. over three years.

What to consider when comparing $5000 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, as 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 Lender Avg. Interest Rate Avg. Repayment Turnaround Time
Traditional Bank 14% p.a. $1041.93* 1-3 business days
Online Lender 39.20% p.a. $672.24^ 1 hour – conditions apply
Payday Loan 319.38% p.a. $1280~ 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 about bad credit loans

How do I apply for a bad credit loan?

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

What happens after I send my application?

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

Are my details secure?

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

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

When an institution lends you money, it wants to be confident you can repay the debt within the loan term. If you are unemployed, your income may be limited unless you receive Work and Income benefit. If the majority of your money comes from Work and Income, you may be still eligible for a personal loan.

Options on borrowing smaller amounts like $1000

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12 Responses

  1. 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?

    • finder Customer Care
      JhezelynDecember 7, 2018Staff


      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.


  2. Default Gravatar
    SandyOctober 2, 2018

    Am I able to get a 5000 credit loan

    • finder 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. :)


  3. Default Gravatar
    TyroneSeptember 9, 2018

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

    • finder 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!


  4. 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.

    • finder 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.


  5. 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.



    • finder 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!


  6. Default Gravatar
    StarrJuly 4, 2018

    I need an advisor for loan request

    • finder 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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