Unsecured Personal Loans: Bad Credit, Instant Decision, Australia

Obtaining a loan to cover any personal expenses, such as medical bills or sudden purchases, can seem impossible if you don’t have a good credit score. Unfortunately, banks just aren’t willing to take a risk on you if you’ve defaulted on loan payments before.

However, some lenders are, and they might even do so without you offering security too. While that may sound like exactly what you need, it’s never wise to rush into a financial decision, so let this article be a guiding hand as you determine your stance on unsecured personal loans: bad credit, instant decision, Australia.

What Are Unsecured Personal Loans: Bad Credit, Instant Decision, Australia?

These unsecured loans are for applicants with bad credit and are characterized by instant approval, so let’s see what that means.

Unsecured Loans

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When we say that a loan is unsecured, it means that you don’t have to back it up with an asset of yours as collateral. This entails less paperwork on your part and thus less time but a more significant risk on the lender’s position, which is why they’ll probably charge you a higher interest rate.

Nevertheless, there are multiple advantages to unsecured bad credit loans. Firstly, you don’t run the risk of losing your collateral (house or car) if you fail to repay your loan. Secondly, even though their interest is higher than that of a secured loan, it’s still lower than that of a credit card. Thirdly, you get to control your repayment term and loan amount.

Tip: If you choose to provide a worthy asset, that may very well boost your chances of approval.

Personal Loans

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Personal loans are sought to grant you cash when needed to cover personal expenses, such as:

  • Travel costs
  • Medical bills
  • Vet bills
  • Home renovation
  • Furniture costs
  • Funeral costs
  • Family emergencies
  • Car maintenance
  • Car Insurance
  • Debt consolidation
  • Wedding expenses
  • New furniture or household appliances
  • Education costs, including uniforms, stationery, and school fees
  • Moving costs, such as a rental bond, body corporate fees, and transport

Moreover, they’re based on your creditworthiness. Therefore, your approval relies on how suitable you are to receive credit, which is decided according to your reliability when it comes to paying lenders, among other factors.

Bad Credit

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Bad credit is very relevant to our previous point. If your creditworthiness is the primary key to approval, that’ll dictate that applicants with low credit ratings don’t stand a chance, whether that’s due to bankruptcy or a missed payment.

However, that isn’t the case because you can request a bad credit loan (small loans that are generally repaid over a short period between a few weeks and a few months). Also, you can secure an emergency bad credit loan of $2000. Undoubtedly, their rates are high because, aside from being unsecured, a low credit score places the lender in an even riskier position.

Instant Decision

bad credit unsecured personal loans with very fast approval

An instant decision doesn’t mean that a loan provider provides you with an automatic outcome in a split of a second but that they’ll review your application quickly. After all, reasonable enquiries into your finances and verifying your documents is necessary before approval, which is bound to take some time.

However, thanks to the online application system, you can easily apply for an unsecured loan in a few minutes, and you’ll receive an almost instant conditional approval, which will take a few minutes, as well. At Perfect Payday, we do our best to find you a lender on the same day.

Am I Eligible for an Unsecured Bad Credit Personal Loan?

Determining your eligibility before applying is helpful because you no longer have to apply for multiple loans, saving your credit score from an avoidable drop. You’re eligible if you:

  • Are at least 18 years old
  • Are an Australian citizen or permanent resident
  • Have internet banking with no less than three months of banking history
  • Receive a regular income
  • Can prove that at least 50% of your income is from alternative sources (if you’re on Centrelink support)
  • Can provide read-only access to no less than 90 days of bank statements
  • Can provide details of liabilities (outstanding debts, credit card repayments, and more)

Can I Receive an Instant Unsecured Loan for Bad Credit?

To answer your question, yes, you can, as bad credit doesn’t automatically disqualify you for a loan. To illustrate, your eligibility is determined by your current serviceability rather than your past financial hiccups. In other words, Perfect Payday values a display of stable income, few liabilities or debts, and reliability with repayments above your credit history.

Tip: You can increase your chances of receiving a bad credit loan by reducing the loan amount or increasing the interest rate.


All in all, unsecured personal loans bad credit direct lenders with speedy approval do come in handy. If you don’t want to risk losing your house but still want to procure cash as soon as possible despite your bad credit, these small loans can cover your expenses, such as unexpected bills and emergency expenses.

The tricky part is the high interest, which is expected considering that loan providers are taking a considerable risk. Thus, it would be best if you were sure you could pay off a loan with a steady income source before applying.

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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