Unsecured Personal Loan Bad Credit

Looking for an unsecured personal loan bad credit? These loans are potentially available online through Monzi’s network of lenders. Get started today!

What is an unsecured personal loan bad credit?

To begin, unsecured loans are not guaranteed by one of the borrower’s assets. Generally, lenders offer unsecured loans at smaller amounts than secured loans. Generally valued at $2,000 and under, you may be eligible to apply for up to $5,000, depending on the lender.

Next, personal loans are a type of loan used to cover personal costs. Therefore, they are unlike mortgages or car loans. You can apply for both secured and unsecured personal loans.

Finally, bad credit loans are available to Aussies with poor credit history. While banks and credit unions may be more critical, bad credit lenders operate differently. In short, a few bad credit listings may not stand between you and approval.

What does Monzi do?

Monzi is an Australian lender-finder service. In short, we try and pair consumers with potential lenders. Specifically, lenders may be able to offer a secured and unsecured personal loan bad credit.

Why apply with Monzi? Well, let us give you an example.

Sarah wants an unsecured personal loan. So, she heads online and applies with a lender – she’s denied. Sarah applies with the next lender and is denied.

This keeps going until she is finally approved. All the while, Sarah has submitted a heap of applications with different lenders.

If Sarah knew about Monzi, she may only have to apply once. Apply once with Monzi and we will try and do the rest. Once we have your application, we’ll try and pair you with a lender from our network.

With Monzi, lenders come to you!

Monzi’s network of lenders can potentially offer the following:

Instant decision loansApproved
Same day cash loans
Online loans bad credit
No credit check loans

Keep in mind, you may not be offered what is shown above.

What can I use my unsecured personal loan bad credit for?

As we mentioned above, you can use your personal loan for essentially any personal cost. Whether you have an urgent expense to cover, or you’re looking to fulfil a lifelong dream, it’s all possible.

Here are some of the more common reasons for applying for a personal loan:

  • Weddings. Thinking about the big day? You could use your loan to buy your engagement rings, the wedding cake, or anything in between.
  • Medical costs. Certain medical expenses like dental work or medicine.
  • Pets. Keep your furry friend happy with pet finance.
  • Car repairs. Get back on the road sooner with a loan for car repairs.
  • Moving home. Don’t sweat it out by yourself – hire all the vans and manpower you need with a relocation loan.

Can I get an unsecured loan with bad credit?

You’re welcome to use Monzi’s service regardless of your credit score.

Please note, however, Monzi does not approve your application. Approval is at the discretion of individual lenders. Therefore, we cannot guarantee you will be approved.

In addition, any loan under $2,000 is unsecured. Conversely, you can apply for a secured loan of over $2,000. Attaching security may improve your chances of approval.

Difference between a secured and unsecured personal loan bad credit

Well, the clue is all in the name. Secured loans are backed by an asset, whereas unsecured loans are not.

Lenders may require you to use an asset as collateral against loans over $2,000. This is because it is potentially risky to lend large amounts of money to consumers with a poor credit history. Attaching security, however, adds a guarantee the borrower will repay their loan correctly.

In short, it may be easier to be approved for a secured loan. Furthermore, secured loans might come with lower rates and fees.

What happens if I can’t repay a secured loan?

Potential repossession of your vehicle.

This, however, is often the last resort for lenders. Generally, lenders will only begin the repossession process once every other option has failed.

Lenders can only repossess an asset if:

  • Borrower is in arrears
  • Lender has given borrower a notice of 30 days to pay the overdue amount
  • Borrower has failed to pay the debt, negotiate an alternative plan or asked to postpone repossession within the above period.

Furthermore, nobody is legally able to enter your property to repossess the asset without:

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

Can I get small unsecured loans fast?

Need a quick cash injection? Monzi can definitely try to help with that.

In short, lenders within our network might assess your application super quickly, and provide an outcome within the hour. However, we cannot guarantee outcome times.

Once an application leaves our system and pairs with a lender, it is out of our hands. In other words, the outcome time is at the mercy of the individual lender.

Moreover, the nature of your application can affect speeds. Some applications may be assessed quicker than others.

Generally, however, it may only take a few minutes to apply with Monzi. From there, we’ll do our best to pair you with a lender in under 60 minutes during business hours. Finally, depending on the lender, you may receive an outcome the same day or next business day.

Is there an unsecured personal loan bad credit with guaranteed approval?

No loan is ever guaranteed. Moreover, any lender offering approval no matter what might be a scam. Let’s tell you why.

Australian consumer credit law required all lenders to lend money responsibly. In other words, consumers should never be offered a contract that is unsuitable. To ensure consumers are only offered suitable loans, lenders need to take the following steps.

  • Inquire into the borrower’s current finances, goals and objectives
  • Take steps to confirm the above is true
  • Assess whether the loan is suitable, based on the above information.

As you can see, lenders offering a loan without any sort of assessment is not lending responsibly. Be cautious around any lender offering guaranteed approval.

What loans can Monzi find?

Technically, we pair you with lenders. The lenders within our network, however, can potentially offer the following:

  • Small loans. $300 to $2,000 unsecured loans with 12 month repayment term.
  • Medium loans. $2,100 to $4,600 secured loans with terms ranging from 13 to 24 months.
  • Large loans. $5,000 to $10,000 secured loans with repayment terms from 13 to 24 months.

Keep in mind, the above repayment terms are a simple guide; the actual terms you’re offered may vary.

Can I get a $30,000 loan?

If you meet certain criteria, you could potentially be considered for a large personal loan from $10,000 to $30,000! These loans will require security, so make sure you have one of the following assets of adequate value:

  • Car
  • Caravan
  • Motorbike
  • Boat.

Are there loans available for really bad credit?

Yes, potentially. However, we should note, your credit score is only one part out of a whole myriad of assessment criteria.

Let’s take a working example to make things clearer.

Consumer A has a pretty normal credit score. In fact, their credit score is better than the average applicant. However, they are denied for the following reasons:

  • Unstable income
  • Poor repayment history with other lenders
  • Applied as unsecured.

Now, consider Consumer B; Consumer B has a very poor credit score, much worse than Consumer A. Their application, however, is approved, because of:

  • An asset of adequate value used as security
  • Good repayment history with other lenders
  • Regular and consistent income and expenses.

Unsecured personal loan bad credit being searched by group of people on silver laptop

What is the best unsecured personal loan?

This question is impossible to answer. After all, the best loan for one consumer may be different from another. As a general rule, however, an unsecured loan may be a good fit if it:

  • fulfils your needs and objectives; and
  • you are able to afford the repayments without significant hardship.

At the end of the day, nobody understands your situation better than yourself. Therefore, weigh up your situation against the pros and cons of an unsecured loan.

Can I get a loan with no credit check?

Potentially, however, Monzi cannot guarantee it. After all, a credit check may or may not be part of a lender’s assessment policy.

More to the point, Monzi is unable to speak on behalf of other companies. In short, a no credit check loan is completely out of our hands.

Keep in mind, if you’re approved, the loan details will be listed on your credit file.

Do unsecured loans hurt your credit score?

In short, it depends on how you handle your loan contract.

For example, if you continually miss repayments, obviously, your credit score will be negatively affected. In addition, multiple applications for credit will also impact your score.

How does an unsecured personal loan bad credit work?

Here’s what you can expect from an unsecured personal loan bad credit:

  • Consumers apply for a loan valued at $2,000 and under.
  • No asset is used as security.
  • Lenders assess application and provide an outcome.
  • If approved, repayment terms may be up to 12 months.
  • Borrowers repay their loan through direct debit.
  • Once the loan is settled, the direct debit stops.

Can I get an instant decision on an unsecured personal loan bad credit?

Lenders will do their best to assess your application as quickly as possible. Depending on when you apply, as well as your application, you may receive an outcome within an hour.

There are, however, certain variables that may affect how quickly you get an outcome.

  • Lenders. Lenders may vary in how they assess applications. As such, outcome speeds may vary depending on the lender.
  • You. The nature of your application may also affect when you get an answer. In short, some applications may be very straightforward to assess, while others may take more time.
  • When. Lenders have their own normal operating hours, just like any business. Apply outside of these hours, and you may only receive an outcome the next business day.

How do I make repayments?

Lenders set up a direct debit from the consumer’s income account. Then, repayments are automatically deducted on the agreed-upon schedule. Once the loan is settled, the direct debit stops.

Depending on your lender, you may be able to choose between weekly, fortnightly or monthly repayments. This will, however, be determined by your lender.

What happens if I miss a repayment?

Lenders will charge fees for missing repayments. Your contract will include all charges and fees associated with your loan.

Get in contact with your lender if you know you will miss an upcoming repayment. Generally, if you give your lender enough notice, they may be able to cancel or reschedule your repayment for a fee. Moreover, your credit report will not record the missed repayment.

If you, however, fail to notify your lender, the missed payment will be recorded on your file. The missed payment may negatively affect your credit score.

I’ve lost my job – how do I repay my loan?

Life will often throw some curveballs your way. You may, for example, lose your job or badly injure yourself and can no longer work. If this is the case, get in contact with your lender as soon as possible.

You may be eligible for a hardship adjustment if you meet certain criteria. You may be eligible for hardship if you:

  • lose your job
  • injure yourself so you’re no longer able to work
  • fall ill and can no longer work
  • split up with your partner.

Thinking of applying for hardship? Here’s how:

  1. Get in contact with your lender
  2. Let them know you wish to apply for hardship
  3. Provide documented evidence of hardship (bank statements, medical certificate etc.)
  4. Lenders assess your application
  5. Lenders may offer a repayment plan if approved.

Ready to apply?

All applications take place online. Consumers can scroll up to the loan slider to begin.

Need a hand with anything? Head over to our handy FAQs page.

Didn’t find the answer you were looking for? No stress – just shoot us an email at hello@monzi.com.au.

Keep in mind, we have no control over your application once it leaves our system. In other words, if Monzi pairs you with a lender, you will need to direct your questions towards them. After all, Monzi cannot speak on behalf of the individual lenders within our network.

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Factor In

Costs

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

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

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%. 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

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

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

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. 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

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

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

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. 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.