Secured Loans For Bad Credit Up To $10,000 – Apply With Monzi Today

Are you seeking secured loans for bad credit, but afraid you don’t have the credit score? Well, you are in luck! Monzi knows just how to help. We are a speedy lender-finder service with a passion for pairing everyday Australians with the most reliable lenders offering personal finance. As a result, we know a thing or two about secured loans. So, stay tuned to learn more about secured loans for bad credit and how to find them.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What are secured loans for bad credit?

Don’t have the best history with repayments? Got a few defaults on your credit record? Don’t sweat it; you may still be able to access a secured loan with poor credit history.

But first, what are secured loans for bad credit exactly? In short, these are loans that borrowers with poor credit history might pursue, as they can be secured by an asset.

As a result, lenders view them as a less risky option when offering loans for people with bad credit. Similarly, bad credit borrowers view this type of personal loan as a more achievable alternative to unsecured loans.

What is a secured loan?

Good question! Essentially, a secured loan is a type of personal loan that the borrower ensures with one of their assets. Specifically, Monzi’s network of lenders will typically accept a car, motorbike, boat, or caravan as collateral on a secured loan.

This security greatly reduces the risk posed to the credit provider, given that if you default on your loan, then the lender may take steps to repossess the asset. As a result, secured loans may have lower fees and interest rates.

Generally, the most common form of secured loan is a car loan. However, secured personal loans are certainly not restricted to car purchases. You can use a secured loan for nearly any legitimate personal purpose, as long as the value of your security is equal to, or greater than, the value of the loan.

In addition, it is vital to note that the form of security that you can use on a secured loan will vary from lender to lender.

How does a secured loan work?

So, how exactly does a secured loan function? Basically, a secured personal loan works just like any other personal loan – just with the added security of your asset.

In short, a secured loan requires you to nominate one of your assets as collateral that will ensure the loan’s repayment. In this way, if you fail to complete your repayments on the loan, the lender may repossess your asset to recover their financial losses.

However, the reduced risk of using security means that lenders may offer lower rates on these loans. In addition, borrowers must usually be registered as the owners of the vehicle or other item they intend to use as security.

What is bad credit?

Basically, bad credit refers to the credit history of someone who has proven unable to pay their debts on time in the past or have made other credit mistakes. As a result, lenders often assume that those with bad credit will be unlikely to make prompt payments in the future.

In other words, a person is typically considered to have bad credit if they have:

  • failed to pay bills,
  • skipped due repayments, or
  • defaulted on debts in the past.

These actions are usually represented by a low credit score.

Generally, someone with bad credit will struggle to borrow money at a reasonable interest rate, as they are considered a riskier customer.

Types of secured bad credit loans

Essentially, the type of secured loan that someone with bad credit can get depends on the kind of security they provide.

However, bad credit borrowers will generally have the choice between:

  • Car loans: if you intend to purchase a new or used vehicle, you can use the vehicle as collateral to secure the loan. Moreover, you may receive lower interest rates and fees from the lender. Yet, these loans can have restrictions on the type of vehicle that applicants can buy, and how they use the loan amount.
  • Home equity loans: if you have equity in your home, you may consider getting a home equity loan. In this case, you can use the equity you hold as collateral on a secured loan.
  • Secured personal loans: secured personal loans for bad credit are simply secured loans used for personal purposes. In short, it is similar to the above loans in that you may use the asset you’re purchasing as security. However, you can also use an existing asset as collateral on a secured personal loan.

Overall, there are a variety of secured loans for bad credit borrowers on offer. Still, potential borrowers should take great care when comparing the various options. Moreover, keep in mind that not all lenders will be willing to offer loans to borrowers with bad credit.

Can I get secured personal loans for bad credit?

Yes, potentially!

At Monzi, we’re a lender-finder service that aims to match you with a lender from our network of understanding credit providers. Best of all, many of these lenders may be willing to consider bad credit applicants.

So, if you’re after cash loans online from $300 to $10,000, apply with Monzi. However, before you begin, make sure that you meet our eligibility criteria listed below:

  • At least 18 years of age
  • An Australian Citizen or Permanent Resident
  • Have a personal email address and phone number
  • Have a personal bank account with at least three months of transactional history

How do I get online secured loans for bad credit?

In short, you could get secured loans for bad credit just like you could get any other loans: by applying for them! That’s all; we handle the rest.

With Monzi, you could apply for a secured loan and receive an outcome in mere minutes. But how exactly do you do that? Here are three simple steps to apply for a bad credit secured personal loan with Monzi:

  1. You apply online: Scroll up to the top of this site, and you’ll find our loan calculator. Choose the amount you intend to borrow and for how long. Next, you’ll receive an estimate of your regular repayments. Keep in mind that your individual lender will determine all actual values. If you’re satisfied with the proposed loan terms, click ‘Apply Now’. Then, just fill in your application form and submit.
  2. We get to work: After you submit your request, we begin our search for a lender that could provide you with a secured personal loan. If we are successful in this process, we will let you know as soon as possible.
  3. You meet your lender: If we locate your lender, we will pass on your application to them. Following this, your lender should be in touch with you shortly to conduct an assessment. If they decide to approve your request, they will provide you with an electronic contract to review and return. If all goes smoothly, you’ll have the cash in your account before you can say ‘secured loans for bad credit’!

And yes, it really is that easy. However, keep in mind that approval is not certain. Lenders will assess your application to determine if you should be offered a loan.

What are the best secured loans for bad credit?

Overall, that really depends on who you are! After all, the best secured loan for bad credit for one person may not be another person’s ideal loan.

Therefore, although we are the lender-finding pros, Monzi cannot speak to everyone’s unique situation. As a result, the best secured loan for bad credit will be the secured loan that is right for you.

So, if you are on the hunt for secured loans for bad credit borrowers, ask yourself the following questions before applying:

  • Available asset: do I have an asset ready to offer as collateral against my secured loan? Can I afford to use this asset as security, if I fail to repay the loan?
  • Criteria: does my asset fulfil the criteria of the lender? Does my lender accept this type of security? Have I paid it off?
  • Repayments: can I afford the repayments of my secured personal loan? If not, can I afford to lose my nominated asset?

In short, once you have assessed your personal circumstances in relation to the above issues, secured loans for bad credit might be an option for you.

Secured loans for bad credit instant decision explained

Generally, lenders will always do their utmost to respond to your loan request as swiftly as possible. However, the speed at which you receive your outcome depends on a wide variety of factors.

For example, some of the variables that may impact the timing of your application outcome will include:

  • Your lender: credit providers vary in the way they assess quick easy loan applications. Therefore, outcome speeds will likely differ from lender to lender.
  • Your application: the nature of your application can also influence the timing of your outcome. In short, some loan applications may be quick and uncomplicated, while others could take more time. Moreover, if you have neglected to include all the personal information required, this may also delay your lender’s response.
  • Your time of submission: Like any other business, credit providers have their own working hours. Thus, if you apply outside of the designated times, you may not receive a response until the next business day.

Guaranteed secured loans for bad credit

Unfortunately, no loan is ever guaranteed: secured or otherwise. Furthermore, any lender that appears to offer guaranteed approval might be a scam. Why? Allow us to fill you in.

The Australian laws surrounding consumer credit require all credit providers to lend finance responsibly. In short, customers should never be offered a loan contract that is unreasonable for them.

So, as a matter of ensuring that lenders only offer acceptable loans, they must adhere to the following steps:

  • Investigate the borrower’s financial situation and objectives;
  • Ensure that any information the borrower provides is accurate; and
  • Evaluate whether the loan is suitable for the borrower, given their current state.

Clearly, any lenders offering loans with guaranteed approval are not lending responsibly. If you notice a lender offering guaranteed loan approval, approach with caution.

For further information on the above list, consult the third chapter of The National Consumer Credit Protection Act.

Do lenders offer small secured loans for bad credit?

So, you only need to borrow a small amount but you’d like to apply for a secured loan. Unfortunately, this typically won’t be possible.

In most cases, small cash loans cover amounts up to $2,000. However, lenders are only able to offer secured loans for loans over $2,000. As a result, it is unlikely that you will be able to apply for the loan you’re after.

In any case, if you are looking for a small loan, then there’s no need to attach an asset as security. Just apply for an unsecured loan and make your repayments until the balance of your loan is paid off.

At Monzi, we can make this happen. We work with a bunch of lenders who offer small personal loans fast. Apply today.

Secured car loan for bad credit

So, you want to know a little more about secured bad credit car loans? Well, you’ve come to the right place!

If you are on the lookout for money to purchase a car, a secured car loan could be an option for you. Put simply, a secured car loan means using the car you intend to purchase as collateral on the loan.

In turn, you are likely to secure more flexible or competitive loan terms. For example, let’s say you want to purchase a car, but can’t afford to pay the full price. Then, by getting a loan against the car, you may afford to borrow the rest of the required funds.

Therefore, if you offer your credit provider the security of collateral, they may be able to offer you:

  • Lower interest rates than if the loan were unsecured;
  • Flexible repayment terms; and
  • Speedier approval of your loan request.

Secured home loan for bad credit

Are you on the hunt for a new home, but in need of a helping hand? Then, a secured bad credit home loan could be an option for you. But, what is a secured home loan exactly?

In short, property security is when a borrower uses their property or house as collateral on a loan. Specifically, the property security could be the property that you use the loan to purchase or another property you already have.

In fact, property security is a common way for people with poor credit to secure a loan. After all, in the event that you are unable to repay your debt, the lender uses your property as protection.

Moreover, if you fail to repay your loan or fall into severe financial hardship, your lender can repossess that asset and sell it to reclaim their losses.

However, the value of the property must first be evaluated by a professional. Generally, this is referred to as a ‘bank valuation’.

Specifically, a bank valuation will estimate the price of the property. Then, lenders will use this to calculate the loan size and loan-to-value ratio. These values provide the lender with an estimate on how much they can sell the asset for, if necessary.

Woman searching for secured loans for bad credit on her phone

Secured debt consolidation for bad credit

Hoping to consolidate your debt through a single secured loan? Look no further. Here’s how to do just that. But first, what exactly is a debt consolidation loan?

A debt consolidation loan is a type of loan that combines many of your debts into one single loan amount. As a result, you would have only one debt to pay, at one interest rate, with one fixed repayment period.

So, when would you need one? Well, a consolidation loan can be used to unite multiple credit card debts or other outstanding repayments. This makes repayments much easier and simple to handle.

There are two main kinds of debt consolidation loans:

  • Secured debt consolidation loans, which must be secured by an asset.
  • Unsecured debt consolidation loans, which require no assets as security but are harder to apply for.

However, it is essential to note that there will still be consequences for defaulting on payments with secured debt consolidation loans for bad credit.

How do I compare secured loans?

First of all, Monzi knows that everyone’s financial situation is different. Thus, the terms of their personal loans should mirror that!

So, it is crucial for potential borrowers to compare and contrast their loan options before deciding on a specific secured loan.

However, what should one base their comparisons on? Specifically, you should compare the various secured loans for bad credit by taking into account:

  • Loan amount.
  • Repayment term.
  • The interest rate on each secured loan.
  • Any additional fees or special features.
  • The reviews of each credit provider offering secured loans.

Overall, these factors can vary greatly depending on the lender you’re working with and the type of secured loan you pursue.

Moreover, it is important to note that the above list is not exhaustive by any means. There may well be a range of other factors that you should account for when comparing secured loans for bad credit.

What can I use secured loans for bad credit for?

In short, you can use secured loans for bad credit for a wide range of purchases!

While one of the most common reasons people get a secured loan is to purchase a vehicle, there are a wealth of other reasons you might use secured loans for bad credit.

For example, you might consider a secured loan to fund the following purchases:

  • Vehicles: the most frequent kind of secured personal loan is a car loan that is secured against the vehicle you intend to purchase.
  • Home improvement: using a portion of your home equity could assist you in paying for any upcoming home renovations.
  • Engagement rings: some lenders may permit you to borrow a loan that is secured against an item of jewellery, such as an engagement ring.
  • Weddings: overall, personal loans for weddings are typically the unsecured kind. However, securing a wedding loan against one of your assets could save you money.

Still, please note that the above list is not definitive. It is likely that there are a range of other reasons why people might need secured loans for bad credit.

Moreover, this list is not suggesting that these purchases are reasons to seek out secured loans for bad credit. Consider consulting with a financial adviser or the visit MoneySmart’s page on personal loans if you’re uncertain about whether a loan is right for you.

How do I make repayments on my secured loan?

Put simply, lenders organise a direct debit from your bank account.

From there, the lender regularly withdraws the payments in accordance with the agreed-upon repayment schedule. For example, you may be able to decide between weekly, fortnightly or monthly payments if your lender permits.

Finally, when you settle the loan, the repayments stop being deducted.

What if I can’t repay my secured loan?

So, you’re worried that you may not be able to repay your secured loan? Wondering what will happen? Allow Monzi to fill you in.

Typically, if you fail to repay your secured loan, your lender is within their rights to repossess your nominated asset. As a result, your lender may still be able to recoup what they have lost by lending finance to you.

Although credit providers are legally able to repossess assets in such an event, there are various consumer protection laws they must adhere to. For example, lenders can only start to repossess your asset if:

  • You are behind on your repayments;
  • Your lender has given you a default notice and allowed you 30 days to repay the outstanding balance; and
  • You have not paid the overdue amount, devised a solution, nor lodged a postponement request within the notice period.

What happens when a lender repossesses my asset?

Even if your credit provider seizes your asset, remain calm – you are still protected by Australian consumer laws.

Therefore, your lender must contact you with a written notice within a fortnight of repossession. Specifically, this notice must outline:

  • The estimated value of your asset.
  • The price of the repossession process, as well as any additional expenses.
  • A statement detailing your rights and duties under the National Consumer Credit Code.

Usually, the creditor cannot legally sell the security item(s) until three weeks after delivering the above notice. As a result, if the borrower repays the overdue amount within this time period, the lender must return the seized asset.

On the other hand, you may be able to inform your credit provider of someone willing to purchase the asset back for its lowest predicted value.

Furthermore, no creditor can legally access your private property to repossess your asset without:

  • A court order; or
  • Written consent from the borrower.

How did I get bad credit?

Unfortunately, there are many missteps that can lead to one accruing bad credit. After all, when you’re experiencing financial stress, it can be all-too-easy to lose track of what you owe.

Notably, the following are common actions that can negatively affect your credit score:

  • Late or missed repayments: your repayment history is highly important. In particular, this history can include the information on certain accounts, unfavourable public records, the number of overdue items recorded, and the period of time for which these balances have remained outstanding.
  • Too much credit in use: this is based on the amount of money you are yet to pay as a percentage of the credit available to you. Your available credit includes the limits on your credit cards. Often called a ‘credit utilisation ratio’, this percentage can be harmful to your credit score if it is too high. Put simply, this is because you may be overextending and struggle to repay this debt in the future.
  • Too many requests for new lines of credit: this includes:
    • your number of recently opened accounts,
    • the percentage of new accounts compared with your total number of accounts,
    • your number of recent credit inquiries, and
    • the amount of time since new accounts were opened or inquiries made.

More causes of bad credit

That’s not all. Here are some other possible causes of bad credit.

  • Too few kinds of credit: this is based on the kinds of credit you use, including cards, mortgages, auto loans, and more. Only using one type of credit can damage your credit rating. In contrast, having a variety of credit portrays you as an experienced borrower.
  • A short or non-existent credit history: though your age is not important to your credit score, the age of your credit history is. Essentially, having a credit history is a chance to showcase your ability to engage in positive credit practices, like repaying bills on schedule. Therefore, older people will usually have better credit scores than younger people operating under the same conditions.

How do I improve my credit?

Are you tired of being overlooked for loans? Want to improve your credit rating? Look no further.

Here are Monzi’s top tips for improving your credit score, one step at a time:

  1. Review your credit reports. Find out exactly what is working against you and what is in your favour.
  2. Get on top of your payments. This means avoiding late payments at all costs. Specifically, you could manage your payments by making a filing system to keep track of bills, setting alerts for payment deadlines, and automating payments from your account.
  3. Use less credit where possible. Notice the portion of your available credit that you currently use, and reduce it to 30 per cent or less. However, if this is unachievable, request a credit limit increase from your provider to lessen your credit usage ratio.
  4. Limit your credit requests and inquiries. Making large requests may suggest that you’re experiencing financial hardship. For example, applying for a new credit card, mortgage, vehicle loan, or another line of credit may have negative effects.
  5. Build up your credit portfolio. Invest in different kinds of credit, or even use financial software to incorporate other kinds of data into your credit score.
  6. Keep old accounts open. Overall, the older your average credit age, the more reliable you will seem to lenders.
  7. Track your progress through credit monitoring. Credit monitoring programs provide an efficient way to track how your credit rating shifts over time. Moreover, their tracking abilities can allow you to detect and prevent identity theft and fraud.

About Monzi

Monzi is a professional lender-finding service that can help you apply for personal loans from $300 to $10,000.

Our mission is to pair everyday Aussies with the most reliable lenders that our network has to offer and help them secure the loans they need.

With one application, you may be matched with a lender in just 60 minutes. Best of all, you can receive the cash you need today and divide the costs evenly into a series of manageable repayments that you must make over the coming months or years.

Does that all sound good to you? Scroll up to our loan slider and apply today!

Apply Now

Well, we’ve reached the end of the line, friend. Now that you know all about secured loans for bad credit and what we do here at Monzi, scroll up to apply!

Didn’t find the answer you were looking for? No sweat – just shoot us an email at

Alternatively, keep in touch with us on Facebook, Instagram, Twitter and Pinterest.

Factor In


Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Loan amount

$2,001 - $4,600


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.