Unsecured Personal Loans Bad Credit Instant Decision Australia

Unsecured personal loans bad credit instant decision Australia – what does it all mean? Monzi is here to unpack it all for you.

Define unsecured personal loans bad credit instant decision Australia

While the above term may seem like a random jumble of words, it all makes much more sense when unpacked.

To begin, unsecured loans are not backed by one of the borrower’s assets like a car or motorbike. These loans pose more of a risk to lenders and are usually only offered at $2,000 and under.

Next, personal loans refer to credit that can be used to cover personal expenses. In other words, you can use these loans essentially like cash.

Bad credit loans are available to consumers with poor credit. If bankruptcies or missed payments in the past have left your credit score looking worse for wear, these loans may be an option.

Finally, instant decision simply refers to a lender able to assess your application quickly and provide an outcome. It does not, however, mean you will be approved automatically or in a split second.

Does Monzi offer unsecured personal loans bad credit instant decision Australia?

We should introduce ourselves before going any further. We’re Monzi, a lender-finder based in sunny Brisbane!

While we don’t offer loans ourselves, we’ve built up a big network of lenders that can! Therfore, instead of applying with lenders all day only to be declined, apply once with Monzi. From there, we’ll aim to match you with a credit provider that might offer the loan you’re looking for.

Moreover, our online and smart system lets us help consumers from every corner of Australia. Furthermore, we can usually access a lot of what we need digitally, meaning your application is usually 100% paperwork free.

Keep in mind, the lenders within our network may all vary in terms of their policies and criteria. As such, we cannot guarantee you being offered unsecured personal loans bad credit instant decision Australia.

The below table shows examples of the types of loans potentially available through our network.

Personal loansCash loans
Secured loansUnsecured loans
Same day loansOnline cash loans

You aren’t guaranteed to be offered one of the above loan types.

What are bad credit personal loans?

As we mentioned above, bad credit loans are available to people with bad credit scores.

Often, certain lenders use your credit report and score to gauge your creditworthiness. In short, creditworthiness is how suitable a consumer is to receive credit, generally based on how reliable they are paying other lenders back, amongst other things.

So, a poor credit score may make it difficult to be offered a loan through a traditional lender. After all, banks and credit unions will often place a higher emphasis on your credit history when assessing.

Ultimately, online lenders may be able to offer bad credit or no credit check loans to consumers unable to secure traditional finance.

How did I get a bad credit score?

Your credit score is simply a snapshot of the information in your credit report. Depending on the agency, your score may range between zero and 1,000 or zero and 1,200; the higher your score, the better.

Your credit report contains information about your history as a borrower. The pieces of information in your report are known as listings.

In short, your credit score will worsen as bad credit listings are added to your report. Bad credit listings include things like defaults or bankruptcies.

Unfortunately, a poor credit score will hinder some of your applications for credit. As such, you may find yourself searching online for unsecured personal loans bad credit instant decision Australia.

Can I improve my credit score?

Lenders perceive a bad credit score as the borrower being a risky loanee. As such, it may feel difficult to secure approval with certain lenders.

Luckily, however, there is good news: your credit score isn’t set in stone!

Just as bad credit listings will negatively impact your score, good borrowing habits will go towards improving your score. For example, you can improve your score through:

  • Making all repayments on time.
  • Reducing your applications for new credit.
  • Paying rent and bills on time.
  • Settling credit cards in full each month.

Consumers are also eligible for a free copy of their report annually; you can find out more here.

Secured vs. unsecured personal loans bad credit instant decision Australia

Unsecured loans are, obviously, not backed by one of the borrower’s assets. As the lender has no repossession option, they are perceived as riskier than secured loans. As a result, they are generally offered at lower amounts with higher rates and fees.

Secured loans, on the other hand, are backed by an asset like a boat or caravan. If the borrower cannot repay their loan, the lender can repossess the asset and cover some of their losses.

Attaching an asset of worth may improve your chances of approval. Keep in mind, however, it is illegal to secure any loan worth $2,000 or less.

Can I get an unsecured loan with bad credit?

Absolutely! Small unsecured loans for bad credit are available through our network of lenders.

Keep in mind, however, a poor credit score gives lenders the impression you are a risky loanee. Moreover, as lenders have no asset to repossess, the rates and fees for an unsecured bad credit loan may be higher.

Ultimately, the lender determines rates and fees.

What happens if I fail to repay an unsecured loan?

Unlike a secured loan, lenders do not have any asset they can repossess in the event of a default. Failing to repay your secured loan, however, is not without recourse.

If you cannot repay your unsecured loan, your account may be handed over to a debt collector. Debt collectors may get in contact with you to:

  • Give information on your account
  • Request payment from you or explain what will happen if you fail to repay
  • Offer alternative repayment plans.

Furthermore, defaulting on the debt will affect your credit score.

Unsecured personal loans bad credit instant decision Australia being applied for by man using phone leaning on motorbike

When will I receive an outcome?

Keep in mind, unsecured personal loans bad credit instant decision Australia may be somewhat misleading. Specifically, instant decision does not mean an automatic decision. All lenders must perform some level of assessment before providing an outcome, and this takes time.

In short, instant decision or approval simply refers to very quick assessment times. So quick, in fact, it may feel almost instant.

Keep in mind, there is no way for Monzi to guarantee when you will receive an outcome. Once an application leaves our system, put simply, it is out of our hands. In other words, outcome speeds are at the mercy of individual lenders.

In short, some consumers may receive an outcome within an hour, while others may only receive theirs the next business day.

Can I get a personal loan with no income?

No; all applicants must be earning some sort of regular income to be eligible for a loan.

If you are not earning any income, lenders are likely to decline your application. After all, consumers repaying their loan is what concerns credit providers.

Furthermore, credit providers use the last 90 days of your banking history to assess your suitability. Not only do lenders look to confirm your income, but also your banking history and spending habits.

Ultimately, it would be irresponsible and illegal for lenders to offer credit contracts to consumers without sufficient income. If you cannot afford to repay your loan, you run the risk of entering into a debt spiral, where new credit is constantly taken out to cover debts.

Are there any fast approval loans with no credit check?

Potentially, yes; however, it is not guaranteed.

Credit checks may or may not be part of a lender’s assessment procedures. And, as Monzi cannot guarantee which lender you may pair with, we cannot guarantee you will be offered a loan without a credit check.

Consumers may expect the following.

  • Lender will not get a copy of your credit report. Obviously, this is central to a loan without a credit check.
  • Loan details listed on your report. Your file lists loan details if approved.
  • Lender checks banking history. Lenders will consider the last 90 days of your banking history to assess if you can afford the loan.
  • Regular income. Finally, borrowers may need to provide evidence of income.

Do I qualify for unsecured personal loans bad credit instant decision Australia?

Keep in mind, approval is at the discretion of the individual lender and subject to assessment. To qualify for our lender-finder service, however, you simply need to meet four criteria.

  • 18 years or older
  • Australian Citizen or Permanent Resident
  • Have a personal contact number and email address
  • Have earned a regular income for the last 3 months into an online bank account.

Consumers are free to start with Monzi if they can say yes to everything above. Just keep in mind, approval is subject to assessment.

How do I apply for unsecured personal loans bad credit instant decision Australia?

Getting started with Monzi is easy. In fact, 3 simple steps are all takes.

Step one

Head to our website and use the loan slider to select the amount you’d like to apply for. Once you make a selection, you are shown estimates of what the weekly, fortnightly and monthly repayments might look like. If a lender offers you a loan, it may not reflect the estimates.

Step two

Our system takes you to our submission form after you click apply now. It is important you provide all relevant information. Don’t stress though, there are helpful instructions at every step, so applying should be a breeze.

Step three

For now, sit back and relax as we try and match you with a potential lender.

Lenders first assess your application and get in touch if approved.

Can you guarantee me approval for a $5,000 loan?

Applying never guarantees approval. Lenders can never guarantee approval; regardless of whether you apply for $300, $3,000 or $10,000.

Furthermore, any lender offering bad credit loans with guaranteed approval no matter what is lending irresponsibly. Why? Let us explain.

As outlined in the National Consumer Credit Protection Act 2009, all credit providers in Australia must lend money responsibly. The act protects Australian consumers against unsuitable credit products.

Lenders must take three steps to ensure they meet their responsible lending obligations:

  1. Inquire into the borrower’s current financial situation, as well as their needs and objectives.
  2. Take steps to verify the above information.
  3. Make a final assessment about whether or not the credit contract is suitable for the consumer.

As you can see, any lender offering guaranteed approval is not making an assessment of your application. Therefore, they are not lending money responsibly.

Online unsecured personal loans bad credit instant decision Australia

It seems everything is on-demand digital and these days. From ordering food to listening to music to watching films; it’s all at our fingertips. Applying for credit is no different.

Through our online business model, Monzi is able to help consumers from all corners of Australia – and fast! From Darwin to Adelaide, we can try to help.

Our online model allows for an easy, intuitive application. Furthermore, we can potentially provide you with an outcome in 60 minutes of applying*.

*60 minute outcomes only possible during normal business hours and not guaranteed.

Need a hand?

Consumers with questions can head to our FAQs page. We have answers to plenty of common questions.

Consumers without an answer can reach out to us directly at hello@monzi.com.au. Monzi guarantees you will receive a reply from a real-life human.

Keep in mind, messages outside of normal hours may not receive a reply until the next business day. Don’t stress though – you’ll always be our first priority.

Apply now

Apply online in minutes. Alternatively, head to the FAQs page if you have further questions. Otherwise, scroll up and begin!

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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.