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Short Term Loans Bad Credit

Often, people with bad credit are not considered by traditional lenders for loan. However, if they meet certain criteria, they may be eligible for short term loans bad credit. With this guide, you can know more about the options available for individuals who have bad credit, how much it costs, the repayment terms, and the good and not so good parts of a payday loan.

What Are Short Term Loans Bad Credit?

Bad credit payday loans are short term loans that provide borrowers who have bad credit with loans. Many lenders don’t offer loans to bad credit applicants but some are willing to do so. Bad credit payday loans refer to short term loans that are less than 2,000 dollars and can be up to 5,000 dollars or 10,000 dollars depending on the lender.

With bad credit payday loans, they often have short terms with regular repayments of either weekly, fortnightly, or monthly. 

Need a loan today? Apply online!

Short Term Loans Bad Credit

Can People With Bad Credit Get A Short Term Loan?

Lenders who offer short term loans bad credit  do not operate the same eligibility criteria as other credit institutions and traditional lenders. As a result, they can give loans to applicants with a bad credit history. Although, the lenders will still conduct a credit check and ensure that applicants meet the basic eligibility requirements.  Payday lenders will look at your present employment status, your regular earnings, the source of your income which may also be benefits like Centrelink, your spending habits, and your financial bank records in the past 90 days.

How Do I Qualify For A Short Term Loan?

Although, the criteria for qualifying for a short term loan bad credit may vary from lender to lender and also depending on the loan size but here are the common requirements;

  • Your Age: You must be at least 18 years old. 
  • Your residence: You must be residing permanently in Australia or be a citizen
  • Your Income: You must be getting regular income into your bank account from any source, whether your job or government benefits e.g Centrelink. Although some lenders will not consider you for a loan if government benefits are your only source of income. 

Keep in mind that, you need to check out the criteria for each loan before you choose an option because the above mentioned are general examples while your loan option may include more criteria. 

Are there guaranteed loans for bad credit?

If you are looking to get loans for bad credit, beware of lenders that claim they offer guaranteed personal loans. According to ACIS it is illegal and points to irresponsible lending. Lenders are required to provide loans for people who meet the requirements, individuals who do not meet the requirements should not bother to apply. 

How Can I Improve My Chances For Short Term Loans With Bad Credit Approval?

Generally, you should do these things to improve your chances of getting approved for short term loans with bad credit, they are:

  • Confirm if the lender will consider applicants who have bad credits. 
  • Make sure that you check the eligibility requirements and you meet all of them before you apply
  • Check if the requirements require a minimum income, then compare with yours. Your application may be rejected if you meet other requirements but you don’t meet this requirement.
  • Don’t apply too many times. If you keep applying for short term loans within a short time severally may result in rejecting your loan application. 

What Are The Features Of A Short Term Loan?

When you apply for short term loans bad credit, expect the following features, terms, fees, they include; 

  • Applying Online: It would only take you about a few minutes to apply for any loan product, and it is completely online. Usually, it will only take a few seconds for you to get a response. 
  • Receive Your Money: You can receive the needed funds in an hour or 24hours depending on the lender, your time of application, and your bank. 
  • Varying Loan Amount:  You can get lenders that offer loan amounts of 100 dollars to 2,000 dollars or 10,000 dollars. 
  • Loan Terms: Your loan terms can range from 9 months to 24 months which depends on your loan amount and lender. For some lenders, you can repay your loan early with no extra charge or penalty. 
  • Repayment: Your repayment depends on your loan agreement. You will repay an agreed amount regularly be it weekly, fortnightly, or monthly. It could be repaid by direct debit, which allows you to set up automatic repayments from your bank account. While some lenders may not charge you for repaying early, some may include a penalty.
  • Loan Fees; Lenders are to adhere to ASIC guidelines, so the fees are fixed. The chargeable fees include establishment fees, monthly interest fees which is a fixed percentage of your loan amount. Find out more about costs below;

How Much Does A Short Term Loan Cost?

Payday lenders may set their fees but the amount they can charge is regulated by the Australia Securities and Investment Commission (ASIC). As a result, your charges cannot be more than the ones mentioned below; 

  • Below 2,000 dollars; 20% establishment fee and 4% monthly fee. Including default and enforcement charges.
  • From 2,001 dollars to 5,000 dollars: 400 dollars one-time establishment fee, 48% yearly interest rate inclusive of every other fee. 
  • Above 5,000 dollars and 24 months loan term: The interest rate of 48% per year inclusive of all charges. 

Please note that before you choose a loan, compare every fee per loan product, then you can now apply.

Why Do Short Term Loans With Bad Credit Cost So Much?

Short term loans bad credit are considered high risk for lenders, thus are the most expensive but they are easy to get. Since borrowers who have bad credit must have defaulted in their credit management in the past, or being denied multiple loans, this will cause negative strikes on their credit report.

People also pay for convenience in accessing payday loans quickly despite their credit history which affects the cost paid for payday loans. There is also the point that payday lenders are exploiting the financial situation of borrowers by giving high costs that will become a burden for borrowers to the advantage of these lenders. 

Still, payday loan providers are to operate strictly in line with ASIC regulations and not charge above or below the given costs. 

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Can I Get Bad Credit Short Term Loan With Low Interest?

It is very unlikely that you will get low-interest bad credit short term loans. Since there’s a higher risk because of the poor credit score, the majority of payday lenders will charge higher costs than the above-mentioned.

But, some lenders may offer secured bad credit loans with low interest. With this, you have to use your asset which costs higher than your loan as collateral. This will reduce the risk for the lender who can repossess your property in case you default.

What Can I Use a Short Term Loan For?

Short term loans with bad credit like payday loans are not a long term solution for your finances, they are an option to help you out of an unexpected or financial situation that you need to sort out quickly.  Also, it comes at a high cost and shouldn’t be wasted on irrelevant expenses. If it is not urgent, check out alternative loan options with lower costs. 

Examples of these situations include; 

  • Medical expenses and medications
  • Veterinary bills
  • Home repairs that need to be fixed urgently
  • Car repairs in case of unexpected damage 

Small Payday Loans Bad Credit

How To Compare Short Term Loans?

There are many lenders, but you must choose the best for you. Here are some helpful tips:

  • Compare different lenders in terms of reputation, customer reviews, terms, policies, and conditions. You can decide to speak with their customer support team to have further clarifications.
  • Be sure of fees and interest rates: Generally, payday loans are more expensive than every other personal loan. Check out each lender’s fees; establishment and monthly fees to decide which is affordable for you before you apply.  
  • Extensions and Redraws on loans: Some loan agencies have an extended period of 90 days at a particular fee, so you should avoid this. Confirm each lender’s terms and conditions if you default in your repayment or you can’t fulfill paying back in full before the end of your loan term. Be aware of the additional fees. 

The Pros Of Short Term Loans

  • Online Application and Outcome Time: You can apply online, get an outcome in minutes, and receive your money within 24hours. 
  • Fixed Rates And Fees: Throughout your loan repayment period, the charges and rates cannot be altered. 
  • Bad Credit History: Despite your credit history, you can still apply if you meet all other eligibility criteria.


  • Higher loan fees: Fees are generally higher compared to other personal loans you should repay your loan within the repayment period.
  • Payday loans cannot be used for long-term solutions: You should consult a financial advisor if you are facing financial difficulties because payday loans don’t offer long term solutions.
  • Fraudulent lenders: Carefully research and confirm that you are not applying with dishonest lenders when looking for a loan.

What Happens If I Miss A Repayment??

  • Bank charges: If you are unable to make a direct debit payment, your bank will charge you for not making this payment. The amount charged depends on your bank. 
  • Overdraft Fees: For a situation where you have insufficient funds in your account, your payment can be deducted from your overdraft in the bank, provided you have an overdraft agreement. Your bank charges you for a particular amount for the money you borrowed according to your overdraft agreement. 
  • Dishonor Fees: If you set up automatic repayments as a direct debit from your bank account but you didn’t have sufficient funds in your account on the date of repayment, you will be charged a dishonor fee. Sometimes it could be 15 dollars for some lenders and 55 dollars for others, there is no limit on the lender for the amount they can charge you. 
  • Late Payment Fees: Your lender will charge you a dishonor fee if you make late payments, they could also charge late fees. The amount of these fees depends on the lender. 
  • Collection Calls: You are likely to receive calls from your loan provider if you fail to make a repayment and you didn’t notify your lender before the set date for repayment.
  • Repossessing Your Property: If you miss repayments for a secured loan, you are at the risk of your property which you used as collateral being repossessed. But if you took out an unsecured loan like most short term loans, your loan provider does not have the right to repossess your asset. 
  • Damaged Credit Report: Missing payment affects your credit score negatively. Short term loans with bad credit borrowers may encounter more setbacks if they miss a payment due to their poor credit history. 
  • Legal Action – In the case, you miss several payments, your loan provider may take legal actions against you. 

How Long Does It Take To Get Bad Credit Short Term Loan?

Generally, short term loans have simple eligibility criteria. The processing time is often faster for payday loans compared to most personal loans. As a result, payday loans offer a form of fast cash.  

Mostly, short term loans like payday loans require a 100% online application which will take you a few minutes. Technology advanced payday lenders can automatically generate read-only bank statements from your banking details which you supplied during application to reduce the time of documentation. To get your needed funds, it may take some lenders as little as 60 minutes while some lenders may take between one to three days. The time to receive your money also depends on your bank, if they are NPP enabled banks. 

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Start your online application now. (Credit Representative Number – 535991) which is an Introducer Appointed Representative of Marketplace Finance Pty Ltd (Credit Representative Number: 487316).

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