Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

A guide to S$5,000 loans with bad credit

Find out the options for getting a S$5,000 when you have bad credit.

If you are considering a payday loan from a moneylender you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore.

It can be difficult to get a loan from a bank with a bad credit history. And while payday lenders usually don’t require a good credit score to take out a loan, most only offer finance of up to S$2,000. However, it may be possible to get a S$5,000 loan with bad credit. Read on to find out the main points of $5,000 loans (or less) if your credit history is less than perfect.

Understanding bad credit

Generally, if someone has any black marks on their credit file (defaults or bankruptcies, for example) it’s safe to assume they have some degree of “bad credit”. However, as the degree of “bad credit” varies between people, one of the easiest ways to check if you have bad credit is by checking your credit report and credit score. When checking your credit report, you should look out for bad credit listings such as defaults, bankruptcies, late payments and excessive credit enquiries.

How do $5,000 bad credit loans work?

Bad credit loans work in a similar way to standard personal loans, except with different fee and interest rate structures. These loans are more expensive because the lenders need to offset the risk of lending to those with adverse credit histories. However, bad credit loans up to S$5,000 typically have capped fees and charges.

With bad credit loans, an applicant’s credit history may or may not be checked. This will be disclosed by the lender beforehand. Most lenders will check a person’s credit history to ensure that they are reasonably able to repay the loan, but lenders that advertise bad credit loans will not disqualify applicants based on credit history defaults.

How bad credit affects taking out a loan

There are some important points to consider before applying for a $5,000 loan with bad credit.

  • Understand the cost of your loan

If you’re borrowing from a non-authorised deposit-taking institution, which is basically any lender that isn’t a bank, credit union or building society, you may face very high fees. Typically you might pay a 20% establishment fee and a 4% monthly fee. Plus, expect an interest rate of around 48% p.a. Make sure you check each loan provider’s terms and conditions carefully so you know the full amount you have to pay back.

  • Check the eligibility criteria before applying

Lenders have set eligibility criteria that can be checked via the Finder review pages. Check the criteria online, if it’s still not clear, call the lender to discuss the situation.

  • Order a credit report

A credit report is the most up-to-date and accurate recording of a person’s financial history and this is what lenders use to judge creditworthiness.

  • Compare options before applying

It’s important to remember that every application for credit you make shows up on your credit history. Therefore, it’s best not to make numerous applications at the same time. It’s also important to be crystal clear on the fine details of the loan before making an application or taking out a line of credit.

What to remember when comparing $5,000 loans

  • Online applications

    The convenience of online application forms and quick approval systems can save time. They also offer the opportunity to compare a range of credit providers.

  • Lenders consider your current financial situation over your credit score

    It’s common to have difficulty being approved for a personal loan from many credit providers with a bad credit history. However, getting opting for a a bad credit lender gives you access to lenders that look at your current financial situation when considering you for a loan. However, it’s important to remember that bad credit lenders generally charge high interest and fees.

  • Repayment terms

    Some lenders may offer options of how to make repayments and direct debit repayments are offered by most lenders.

  • Bad credit loans are high cost

    Due to the high risk of this loan, the lender will usually charge higher fees.

  • Loans over S$2,001 come with high interest

    While loans under this amount typically may not come with interest rates (only set fees… but do check), loans above this amount come with rates typically maxed at around 48% p.a.

  • Disreputable lenders operate in the bad credit loans space

    There are many disreputable lenders operating online that prey on people with bad credit, so it’s important to thoroughly research the lender in question and consider if a bad credit loan is the best approach to the situation.

Things to watch out for with bad credit loans

There are quite a few risks associated with loans for people with bad credit:

  • High fees and inflexibility. If you’re intending to take out bad credit personal loans, be aware that these loans typically come with high fees and inflexibility from the lenders.
  • Is it realistic? It’s vital that anyone considering applying for a bad credit loan up to S$5,000 considers how they intend to repay the loan. Repayment periods are a lot shorter than standard loans which means repayments will be quite high. Lenders usually offer calculators to show an indication of your repayments so it’s a good idea to run the numbers before committing.
  • Not considering the fees as well as the interest rate. Lenders may charge an interest rate as well as fees and other charges. Check these before applying and consider the total cost of the loan.

And as always you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore if you are considering a payday loan.

More guides on Finder

  • Instalment payday loans

    If you’ve found yourself in unexpected financial difficulty, you might be looking for a short-term loan that lets you spread repayment over a few weekly or monthly instalments.

  • Cash Mart Payday Loan Review

    Cash Mart payday loans are useful for short-term cash crunches, and could help you ease up difficult financial situations.

  • No credit check payday loans in Singapore

    These lenders won’t complete a credit check when people apply for a loan, but there are other eligibility requirements that applicants must meet. Learn more here.

  • Loans for bankrupts

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

  • Loans for unemployed applicants

    Unemployed individuals in Singapore may consider applying for a loan to meet their short-term financial needs.

  • HMS Credit Review

    HMS Credit offers a number of personal and business loans to meet different needs. Here’s what you need to know.

  • LoanWise Singapore Review

    What you need to know about payday loans offered via LoanWise Singapore.

  • Online payday loans

    Online payday loans may offer a quick and convenient way to borrow, but they also carry a high level of risk.

  • Quick loans

    Quick loans in Singapore are short-term financial solutions which can be used to meet urgent expenses.

  • Cash loans

    A cash loan may be able to cover your urgent expenses during a time of financial emergency.

Ask Finder

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy Policy and Terms.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site