Bad Credit Personal Loans: Guaranteed Approval, Direct Lenders

Bad credit can prove to be an obstacle in securing personal loans, so the promise of guaranteed approval certainly has its appeal. However, is it possible to get them in Australia, or is it too good to be true? And if it’s true, how legal is it? And how can you be sure it isn’t a scam?

These are all questions that, no doubt, have crossed your mind, which is why we address them in this guide on “bad credit loans, guaranteed approval, direct lenders.”

Are Bad Credit Personal Loans, Guaranteed Approval, Direct Lenders Legal?

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The short answer is it’s illegal for lenders in Australia to provide bad credit personal loans with guaranteed approval due to their responsible lending obligations. These obligations require lenders to make reasonable inquiries into your application, including your reason for the loan, income, living expenses, and such information. If you still are saying, “I need a loan“, continue reading or apply for a loan today.

Based on our firsthand experience, accordingly, lenders can conclude whether you’d be able to pay back the loan or not. If not, they’re legally obliged to reject your loan application, and so, by extension, guaranteed approval of loans is illegal and defies the responsible lending obligations. This protects you against loan providers who are looking to scam you into colossal debt.

What Are Bad Credit Personal Loans With Direct Lenders?

Omitting the guaranteed approval part in “bad credit loans monthly payments, guaranteed approval, direct lenders”, this is still a compound notion, so let’s unpack it.

Bad Credit Personal Loans

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When we trialed this product, this type of personal loan is targeted towards borrowers with a low credit score. Banks don’t provide this type of funding, but lenders, however, may. Some lenders place more emphasis on your current relationship with money rather than dwelling on the past. They look at things other than your credit score, such as your current employment.

Nevertheless, since lenders would be taking a bigger chance on you than, say, someone with a good credit score, they’re likely to demand a higher interest rate.

Direct Lenders

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As indicated by our tests, direct lenders are a financial authority who you can work with to provide fast bad credit cash loans. This process requires no third parties or brokers and is thus, much more efficient and less time-consuming. Therefore, they’re a viable option, compared to banks and credit unions, if you’re looking for funds instantly and if “time is of the essence.”

Furthermore, these are unsecured loans, meaning you don’t need to provide any form of collateral. You wouldn’t be risking your house or any of your property to secure the loan. What are secured loans bad credit? They are loans that are secured by collateral that you will give up if you are unable to repay your loan.

Not to mention, unsecured loans can be used to cover various expenses from wedding events and holiday expenses to debt consolidation. Also, you’re allowed more control over your loan amount and term than other types.

Can I Apply for a Bad Credit Personal Loan?

You need to be eligible for the loan, which isn’t as demanding as you’d think because it’s a loan for bad credit, after all, so to be eligible, you must:

  • Be 18 years old or over
  • Be an Australian citizen or permanent resident
  • Have a sufficient, steady source of income
  • Have no other personal loans or outstanding debts
  • Have a checking account from a UK based bank

Tip: the eligibility criteria differ from one lender to another, so contact your lender and ask them what they expect of you and how you can better your chances of approval.

How Do I Increase My Chances of Approval?

If you have bad credit, there are still things you could do to improve your loan application, aside from contacting your lender.

1. Improve Your Credit Score

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People who wish to borrow larger sums of money, such as bad credit personal loans guaranteed approval $5000, may need to secure their loan with collateral.

Needless to say, improving your credit score would be of great help, and although that’s no easy task, there are ways to accomplish that. If you’re unsure about that, check out these tips on improving your credit score.

2. Cut Down Spending

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When lawn providers view your bank statement, that’ll clue them into your income and spending habits. They’ll take note if you’re in the habit of splurging over takeaway, gambling, alcohol, and more. This will clearly not paint you in the best light.

3. Pay Your Bills on Time

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Looking for a guaranteed loan? While we obviously cannot guarantee loans for people who are unemployed and have no ability to repay, we find that often someone will believe their credit is far worse than it actually is. If you are interested in guaranteed approval loans for poor credit, submit your application with Perfect Payday today.

Some lenders are willing to overlook your bad credit and history of missing repayments if they find that you’re currently paying your bills on time. This proves a sense of reliability.

How Do I Apply for a Bad Credit Personal Loan?

Like many other online loan applications, this three-step application process is fairly simple.

1. Submit Your Online Application

You have 24/7 access to the online application. Merely fill in the application, which shouldn’t take you more than a few minutes, so it’s fast and convenient.

2. Wait for Assessment

Drawing from our experience, our loan providers verify your information to make sure you’re capable of repaying a loan, as we’ve illustrated. You’ll receive a conditional approval since this is an instant loan. Then, you’ll get matched with a lender, and in an hour, receive a final answer.

3. Sign the Loan Contract

After carefully reading its terms, sign the loan contract and send it to us to receive your funds in one business day, give or take.

How Do I Choose the Right Direct Lender?

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As per our expertise, there are three main aspects to note when searching for a suitable direct lender. Firstly, assess them according to their reputation and what other borrowers say about them. Secondly, consider how convenient the loan application process is because, after all, that’s the point of working with a direct lender. Thirdly, what seals the deal is the actual terms of the contract.

Tip: Some of the values to pay extra attention to in a loan contract are interest rates, hidden charges, additional fees, early payment policies, and early payment fees. You can decide, accordingly, whether you find the terms of the contract satisfactory or not.

Do you need a loan for a motorcycle? Consider applying for bad credit motorbike loans through Perfect Payday. Click the apply button and submit your application today.

We also can provide loans for boats. You can learn more about no check boat loans at this link.

Finally, if you are interested in no credit check truck loans, we can help you secure a loan for your new truck as well.

The same goes for vehicles. Do you need a loan for buying a new car? Apply for a no credit check car loan Australia with Perfect Payday.


Ultimately, if you find loan-providing services promising quick cash loans bad credit, guaranteed approval, direct lender, take that with a grain of salt. Lenders are obliged to make reasonable inquiries into a borrower’s finances and accordingly assess their ability to pay off a loan before approving, so it follows that guaranteed approval is illegal.

Nevertheless, applying for a loan bad credit history may not be a bad idea because there are lenders who focus more on your current rather than past relationship with money. Moreover, consider the many ways to improve your loan application to boost your chances of approval, check your eligibility, and apply for a loan in the previously mentioned three steps.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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