Bad credit personal loans

Don't let your credit rating hold you back. Find a bad credit personal loan that's right for you.


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Bad credit is tough to shake. Having negative listings on your credit file can severely hinder your ability to access loans. However, if you’re on the “credit fringe” there are still a variety of loan options you can consider. Find out what’s available in this guide.

Lenders that consider bad credit borrowers

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
Pioneer Finance Personal Loan
11.95% - 27.95%
Up to 7 years
$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%
6 months to 4 years
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).
QuickLoans Personal Loan
9.95% - 23.95%
6 to 60 months
$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.
NZCU South Personal Loan (Secured)
9.90% - 28.90%
Up to 7 years
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.
NZCU South Personal Loan (Unsecured)
10.90% – 28.90%
Up to 7 years
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.

Compare up to 4 providers

How can I receive approval for a loan with bad credit?

There is no trick to receiving approval. However, there are a few things you can do to give yourself the best chance.

  • Don’t make too many credit applications at once.

Too many applications is a red flag to lenders and can hinder your chances for future credit approval. If you have done this, try and wait before you make future applications.

  • Check your credit score to see where you stand.

By checking your credit score, you can gain an idea of your current position and where you fall in the credit-active population.

  • Use a personal loan calculator.

Using a loan calculator will ensure you don’t apply for a loan you can’t afford. When reviewing your application, lenders will only approve your loan if you can afford the repayments.

What are your loan options with bad credit?

There are various personal loan options for people with a bad credit rating.

  • Secured personal loans.
    If you can provide collateral, such as a car, equity in your home or another high-value asset, a lender may be more willing to overlook a few negative marks on your credit file.
  • Guarantor personal loans.
    Do you have a partner, close friend or relative who is willing to guarantee the loan for you? If so, you may be able to qualify for a guarantor personal loan. Certain bad credit lenders offer tailored products that you may want to consider.
  • Short term loans.
    Are you only looking to borrow up to $2,000? Then you can consider a short-term loan from a payday lender. These lenders focus less on your credit history and more on your current financial position and ability to repay the loan.
  • Large amount bad credit loans.
    If you need to borrow more than $2,000 and have bad credit, some providers offer these loans – for example, Harmoney provides loans up to $20,000. You can also find a few lenders that offer loans of more substantial amounts, for instance, Geneva Finance offers car loans of up to $65,000. However, please think carefully about how much you can comfortably afford to repay from your income.

How much do bad credit loans cost?

This depends on the lender you apply with and also the type of loan. Below is an example of a typical lender’s rates and fees:

  • Loan provider: Instant Finance offers loans between $200 and $20,000
  • Interest rate: between 19.95% and 29.95%.
  • Loan term: 3 months to 3 years
  • Establishment fee: $300 for a loan of between $1,000 and $3,000
  • Early repayment fee: fee: $100 (plus additional costs)

Please see Instant Finance’s website for other relevant fees and costs.

How do I know if I have bad credit?

Although the definition of “bad credit” differs between lenders, bankruptcy, defaults and Debt Repayment Plans (Summary Instalment Orders – SIO) are red flags to lenders and usually place you in the bad credit category.

However, your credit file also holds other relevant financial information which can look bad to prospective lenders. This includes overdue bill and loan repayments; multiple credit applications or exceeding credit card limits. Excessive credit applications in a short space of time can also put you in the bad credit category, if only for a short space of time. There are varying levels of how bad your credit file looks to lenders, so make sure you check and compare the application criteria for personal loans to see if you are eligible.

Talking to lenders is also a good idea; you may be surprised at how flexible they can be.

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4 Responses

  1. Default Gravatar
    SrividhyaJanuary 9, 2019

    I need a loan but I have a bad credit history. Is this possible?

    • Avatarfinder Customer Care
      JoshuaJanuary 14, 2019Staff

      Hi Srividhya,

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

      Even if you have a bad credit, it is still possible for you to apply for a loan. However, your options might be limited.

      On this page, you can check your options such as the one on our comparison table. Click on the “Go to site” green button to be redirected to their website and learn more.

      This page also comes with guides and tips on how to improve your chance of getting a loan. Please make sure to review this page.

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

      Have a wonderful day!


  2. Default Gravatar
    ImeletaDecember 19, 2018

    Can I apply for loan for Xmas shopping

    • Avatarfinder Customer Care
      nikkiangcoDecember 20, 2018Staff

      Hi Imeleta,

      Thanks for reaching out! You can definitely apply for a loan for whatever purpose it will serve you. As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy. Hope this helps!


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