Bad Credit Payday Loans in Australia

We all know the struggle of getting a loan with bad credit. Some lenders will run a credit check, see a late payment, payment default, or several hard inquiries, and reject your application. It’s frustrating to be seen only for your past mistakes rather than your current finances.

That’s why we’ve partnered with reputable lenders who accept bad credit applicants and offer payday loans. With Orange Loans, you’ll receive enough funds to get you going until your next payday. So, let’s see how bad credit payday loans in Australia can help you.

What this article covers:

What Are Bad Credit Payday Loans?

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To understand these loans, we have to look at payday loans and bad credit loans separately.

Payday Loans

Previously, payday loans were banned, but they were legalised and regulated in 2013 to protect borrowers against predatory lenders.

These small loans are usually $200 to $2,000, which renders them helpful if you have bills to pay or small purchases to make. Since their amounts are small, you won’t need to offer any security. The loan terms for these unsecured loans range from 16 days to a year and can even be two years.

The reason for the naming is that this loan is designed to be fully or partially repaid on the applicant’s next payday. After all, the idea is that a payday loan helps you cover expenses that arise between paydays. However, you can usually extend your repayment period to months.

Bad Credit Loans

These loans are designed for applicants with bad credit. Your credit history is a representation of your financial history. And it indicates that you didn’t manage your finances properly via:

  • Payment defaults
  • Missed payments
  • Multiple hard inquiries
  • Alarming/Excessive credit use
  • Failure to pay instalments for goods or services

However, these factors aren’t a reflection of your current finances. That’s why lenders who specialise in bad credit loans have different criteria.

These lenders evaluate your ability to pay back the loan by looking at your income, employment status, recent financial activity, and outstanding debts. This way, they can determine if your circumstances accommodate the monthly payments.

At Orange Loans, we don’t conduct a credit check, but some lenders may. However, applying for a bad credit loan allows your application to be evaluated in a different light than your credit history.

Can I Get a Payday Loan With Bad Credit?

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Yes, these loans have high acceptance rates, but you’ll have to meet the eligibility criteria for your lender. Here’s what it may include:

  • Be at least 18 years old
  • Be an Australian citizen or permanent resident
  • Receive a sufficient regular income
  • Have a bank account

How to Get Real Payday Loans for Bad Credit

The online application is easy and simple. All you have to do is follow these three steps:

1. Fill Out the Online Form

You can start by adding the loan amount and repayment period you want and selecting the purpose for your loan. Then, enter your personal information and documents in the online form, which is:

  • Full name
  • Contact details, including your mobile number, telephone number, and email address
  • Gender
  • Qualifications and education
  • Physical or residential address
  • Occupation (by providing pay slips, job history, or other documentation forms)
  • Bank statement data for the 90 days before your application
  • Bank account details
  • Credit requests you have made with us
  • Tax returns for the past two years
  • 100-points of identification
  • Evidence of your borrowing history (such as loans and mortgages)

2. Get Matched

We’ll receive your application and start searching for a loan provider who’s willing to approve it. They’ll consider your income, spending habits, recent transactions, expenses, and current debts to make a decision.

Lenders might run a credit check, but bad credit won’t disqualify you. If they approve your loan application, we’ll connect you with them (which could take a few minutes!)

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3. Sign Your Contract

After approving your loan application, your lender will put together a loan agreement. It’ll include the loan amount, repayments, loan terms, repayment dates, fees, charges, and interest rates. Get the opinion of a financial or legal consultant, and make your decision.

If you decide to go through with the loan, sign the contract. Then, the lender will agree with you on how to send you the funds, and you’ll receive them in no time!

Pros and Cons of Bad Credit Payday Loans

To make an informed decision, you have to factor in the perks and downsides of bad credit payday loans .

Pros

Payday loans bad credit (au) can benefit you in various ways, thanks to their:

Credit Repair

Bad credit same-day loans not only get you through your financial hardships but also help you fix your credit. When you pay your loan back and meet your repayment deadlines, that demonstrates your financial responsibility.

Despite not being a quick fix, taking out short-term loans and repaying them slowly increases your credit score. But make sure you don’t get several loans at the same time, as that can have an adverse effect.

High Acceptance Rate

By applying for a bad credit loan, you have a solid chance of acceptance. After all, bad credit is arguably the main reason many Australian citizens can’t access banking products.

Easy bad credit loan providers assess your current ability to repay the loan rather than your financial history. So, if you have a form of employment and a regular income source that suits the loan amount, your application will likely be accepted.

Fast Funding

Payday loans are meant to cover small pressing expenses between paychecks, so time is of the essence. For that reason, the application is quick and easy, with no paperwork to complete, and the turnaround time is excellent. We may match you with a lender in minutes, and they’ll typically transfer the funds the same day or the following one.

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Short Loan Terms

Everyone wants to get the loan repayment over with, which is why you’ll appreciate these loans’ short repayment period. They’d be repaid on your first payday, but you can stretch them over several weeks or months (which is still quick). Of course, the shorter the loan term is, the less you pay on interest.

Flexible Repayment

The default is that you repay a payday loan on your next payday. However, you can split your repayments over several instalments and schedule them according to your payment cycle in weekly, fortnightly, or monthly payments. This way, you can repay your loan comfortably.

No Collateral

You don’t need to attach a personal asset to your loan as security, which means you won’t lose it if you fail to repay the loan on time. This makes sense because the loan amounts are small.

Cons

Some concerns that you need to be aware of before taking out online payday loans for bad credit include the following:

High Cost

When they grant you bad credit payday loans online, direct lenders take on considerable risk. This is why they charge more for these loans than personal ones.

After all, applicants may have defaulted on payments before, which gives lenders little to no proof of their financial responsibility. Also, they require fast access to funds, which comes at a price. Short-term loans tend to be more expensive than long-term ones, as well.

Still, the Australian Securities and Investments Commission (ASIC) has capped fees and charges on these loans.

As Small Amount Credit Contracts or SACCs (loans under $2,001), lenders can only charge up to 20% of the loan amount as an establishment fee, a monthly flat rate of 4%, government fees (if applicable), and default fees and enforcement costs (including solicitor’s costs or court costs).

Credit Checks

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When you’re applying for bad credit payday loans, lenders might conduct credit checks. They won’t base their decision on your credit score, but the hard inquiry will appear on your credit report.

Accordingly, future lenders will be able to tell that you’ve applied for this loan. If there are multiple inquiries, this can alarm them. Not to mention, it can decrease your score for up to two years.

What Can You Use a Payday Loan For?

You can use payday loans to cover urgent or unexpected expenses. These small loans are helpful in the case of:

Medical Bills

Unexpected hospital bills can break the bank, but payday loans can help. This way, you can afford emergency medical expenses, optical bills, other specialist bills, or medical accommodation costs.

Car Expenses

You might need to pay registration costs. Perhaps your car has broken down and needs a new tyre or a replacement part. Payday loans for bad credit can take care of your car repair fees and related expenses.

Veterinary Bills

It’s expensive to keep a pet, so how do you afford vet visits between paychecks? Get bad credit payday loans from direct lenders for regular check-ups, surgeries, treatment, medication, and even animal accommodation.

Utility Bills

Unexpectedly high electricity, internet, phone, or water bills don’t have to be a problem. You can take out a payday loan to pay for any utilities and keep the household running.

Holiday Expenses

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If you’re going on a trip, you might need plane tickets, tours, accommodation, restaurant reservations, and car rentals. For that reason, a bad credit holiday loan can help you afford these expenses and make the most out of your vacation.

Debt Consolidation

Get to the root of the problem, and start fixing your credit with a debt consolidation loan. If you have several loans, you can simplify them and merge them into one. This way, you can keep track of your repayments, pay fewer fees, and raise your credit score.

Home Maintenance

Does your apartment need bond cleaning or any repairs? You don’t need good credit to get enough funds and get the repairs done!

Educational Fees

Do you need to pay the fees for a course or buy school uniforms, university textbooks, or any pricey equipment? Don’t let your bad credit get in the way, and consider payday loans for students with bad credit.

FAQs

Can I Get an Instant Approval Loan?

Yes, you may be able to get instant approval and get matched with a lender in minutes. Afterwards, how fast you get the loan is up to your lender, as you’ll deal directly with them. You can get your funds the same day, the following day, or else. But payday loans have fast turnaround times.

How Do Loan Repayments Work?

You and your lender agree on a repayment schedule. Then, you typically set up a direct debit payment so that the money is automatically withdrawn on your repayment deadline. And you can make early repayments according to the agreed-upon terms.

Can I Get a Bad Credit Loan With Unpaid Defaults?

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It depends. If they’re recent, they’ll have your application rejected. As for old unpaid defaults, you might get a loan; nevertheless, they’ll undermine your chances of acceptance.

Can I Get a Payday Loan If I Am on Centrelink Benefits?

Yes, at Orange Loans, we consider loan applications in terms of suitability and affordability. So, if your Centrelink payments are enough to repay your loan, you can get a Centrelink loan. But you’ll need to have an eligible support type, such as:

  • Carer’s Allowance
  • Age Pension
  • Single Parent Payment
  • Mobility Allowance
  • Centrelink Pensions
  • Child Care Benefit
  • Disability Support Pension
  • Veterans Affairs Pension
  • Jobseeker Payment
  • Partnered Parent Payment
  • Totally & Permanently Incapacitated Pension (T&PI)

Can I Get Multiple Payday Loans at Once?

No, most lenders will think twice before lending an applicant money when they have an outstanding payday loan. We recommend paying off a loan before applying for another, which shouldn’t be difficult since these are short-term loans.

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Final Verdict

Overall, bad credit payday loans in Australia allow many citizens with past financial mishaps a chance. They can use these short-term small loans between paychecks to cover urgent or unexpected expenses, as they’re accessible fast funding options.

Then, borrowers can repay these loans to demonstrate their financial responsibility on their credit reports. With time, paying back such loans will help them repair their credit, thus addressing the bigger problem.

Was the guide helpful? Check out these extra resources to delve deeper: