A Guide to $1500 Loans for Bad Credit

Who hasn’t been in a situation where an unforeseen expense suddenly cropped up? For example, maybe you need to replace your car’s tire. Or you’ve been in an accident and need to pay a hospital bill. Whatever it is, you’ll probably need some money right now.

However, where can you borrow money if you have bad credit? The bank certainly won’t give it to you, but can the same be said for others?

Well, if you need money, you’ve come to the right place. We’ll tell you exactly how you can get $1500 with bad credit and explain a few other essential details. So, let’s dive in, shall we?

What this article covers:

Can You Get a $1500 Loan with Bad Credit?

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Yes, you can get a $1500 loan with bad credit. However, while many financial establishments refuse clients with low credit scores, many private lenders are still willing to work with them. “Why?” you ask. 

Well, that’s because they believe in giving everyone a fair chance. So as long as you can show these lenders that you’re willing to pay back your loan and have a means of doing so, they wouldn’t hesitate to lend you the money.

But if it’s so easy, why don’t banks do the same?

Well, that’s because banks can’t take the risk, as unrepaid loans could severely affect the country’s financial status. So, the Australian government has imposed many restrictions on banks, making their lending criteria extremely strict. 

As a result, banks only lend money to people who have already proven that they can and will pay back their loans on time, aka people with good credit. 

But, bad credit or good credit, we’re all humans, and every person may occasionally need some extra money. That’s why many private lenders have made it their business to help clients with all kinds of financial situations and credit scores. And here at Orange Loan, we can get you in touch with those lenders with just a few clicks. 

What Do You Need to Get a $1500 Loan With Bad Credit?

Nothing too major. In Australia, you just need to:

  • Be over 18 years of age
  • Be an Australian citizen or a permanent resident of Australia
  • Have an active bank account, email, and phone number
  • Earn a regular income for at least the previous three months 

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If you fulfil these criteria, you must submit an online application form stating how much money you’d like to borrow and your preferred loan term. With the application, you’ll also be asked to submit:

  • A copy of your ID/Driver’s licence 
  • Specific personal details, such as your email, address, and phone number
  • Employment details 
  • Proof of income (payslip or bank statement)
  • 90-day history of your bank transactions

After the lender reviews your application, you’ll get a call from them. This is mostly to verify your information and shed light on any unclear information. Then, if all is in order, the lender will send you the contract to sign. Once you do, the money will be transferred to your bank account in less than 24 hours. 

Is It a Must to Perform a Credit Check for a Loan?

Well, this depends on the lender. 

Some may ignore their clients’ credit scores, instead judging for themselves whether you’re a good candidate for a loan or not. 

However, other lenders like to perform credit checks on all their customers, especially first-timers. 

As you know, your credit history can reflect whether you’re a low-risk or high-risk client. The lower your credit score, the less reliable you seem. That’s because a low credit score indicates that you’ve probably had multiple late payments, missed payments, or loan defaults. 

If you have bad credit, money lenders will be more cautious when dealing with you. While they won’t automatically reject you, they’ll probably refuse to lend you huge amounts or give you a slightly higher interest rate. 

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However, for a $1500 loan, you don’t need to worry about this. 

That’s because the Australian Securities and Investment Commission (ASIC) constitutes any loan for $2000 and less to be a small-sized loan. On such loans, no lender can attach an interest rate. The most they can do is charge a 20% establishment fee and a 4% monthly fee.

So, even if your lender runs a credit check on you and discovers your bad credit, you’ll still get the same terms any other person would for a $1500 loan. 

How Much Will a $1500 Loan Cost?

For a $1500 loan, the maximum a lender can charge you is 20% of the loan for the establishment fee and 4% for the monthly fee. 

So, if you borrowed $1500 loan to be repaid in 1 month, you’ll pay:

  • Establishment fee: $300
  • Monthly fee: $60
  • Total: $1860 

Now, keep in mind that late payment fees are a thing, and they can go up to $7 per day. In addition, there are also default fees, which can be double the original loan amount. 

Of course, these fees won’t affect you as long as you make your payments on time. So, stick to your loan terms, be diligent, and you won’t pay a cent over $1860. 

What Type of Loan is a $1500 Loan?

$1500 loans fall into two categories: personal loans and payday loans. What’s the difference? 

Both types of loans are considered small, unsecured loans or loans that don’t require putting a valuable asset as collateral. As such, many people use “payday loan” and “personal loans” interchangeably since the loan amount is smaller than $2000.

Typically, payday loans are for smaller amounts and don’t require any credit checks. So, on the bright side, they’re faster to acquire than personal loans, and anyone can get them. 

However, they also need to be paid back quicker than personal loans (16 days to one year). Moreover, they tend to have higher fees than personal loans, though this usually isn’t an issue with $1500 loans. 

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Still, you should always ask your lender if your loan will be a payday loan or a personal loan. Why? Because while personal loans can help your credit score, payday loans can’t. 

You see, personal loans are almost always reported to credit bureaus. So, if you take out a loan and repay it fully on time, your credit score will start to improve. The more personal loans you take out and pay back, the higher your score will get, and one day, you’ll finally qualify for any loan you want, be it with a bank or otherwise. 

On the other hand, payday loans are rarely reported to credit bureaus. So, even if you pay your loan bank, your credit score won’t improve in the slightest.  And if you happen to default on your loan, you’ll be referred to a debt collection agency, and this will make your bad credit score worse.

So, if you’re offered the choice between a payday loan and a personal loan, always choose personal. You’ll have much better loan terms, and if you do well, your credit score will get better. 

Yes, though not all lenders will unconditionally accept Centrelink recipients, particularly those with bad credit. 

If all or most of your income comes from Centrelink, lenders may be hesitant to lend you money. That’s because they fear your financial situation isn’t good enough to pay back the loan in a timely manner. 

Nevertheless, many lenders do give out loans to Centrelink recipients, especially if they make more than $450 per week. Still, your chances of being accepted will be much higher if you have another primary source of income. 

So, if you’re on Centrelink benefits, don’t be afraid of applying for a $1500 loan. Though it may take you a while to find a willing lender, you’ll eventually find one and get the money you need. 

1500 payday loan

Is There an Alternative to Getting a $1500 Loan? 

If you think that a private money lender isn’t the right choice for you, you’ll be happy to know that there are a few alternatives you can try.

No-Interest Loan Scheme (NILS)

As the name suggests, this allows Aussies to borrow up to $1500 with absolutely no fees, interest, hidden charges, and, best of all, no credit checks. Even if you have a bad credit score, you still have a 100% chance of getting this loan. Of course, that’s if you match the eligibility criteria. 

First off, the loan money must be used to pay for essential things, such as household items, educational materials, medical or dental services, or car repairs. You can’t use the money for debt consolidation or family vacation—just the bare essentials. 

Secondly, you need to be a low-income Aussie. So, you should either have a Health Care Card, or a Pensioner Concession Card or make an income of less than $45,000 per year after tax. 

If you match all of the conditions mentioned earlier, you can easily get a no-interest loan for $1500, which you’ll be required to repay over 12-18 months. 

Centrelink Advance Payment

If you’re a Centrelink recipient, an advance payment can be a great way to get your hand on some money quickly.

Basically, you’ll be getting your upcoming payments a few weeks in advance. As such, the loan amount will be automatically deducted from your income until the debt is repaid. 

Like a NILS loan, a Centrelink advance payment doesn’t come with fees, interest, or credit checks. As long as you’re a Centrelink recipient, you can apply for an advance. 

Still, keep in mind that the loan amount will vary depending on what type of benefit you’re receiving. For instance, if you’re on the Job Seeker allowance, the most you’ll be able to borrow is $500. However, if you’re on a disability support pension, you can get up to $1372. 

So, even if you can’t get the full $1500 you need, you can still get a part with no strings attached. If you take out a loan with a private money lender, it’ll be for a smaller amount with smaller fees. 

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Note: Until you repay the advance, you’ll be short on funds. So, try to work a few extra shifts or take a second job to cover your regular expenses. 

Frequently Asked Questions

What’s Considered a Bad Credit Score in Australia? 

In Australia, if your credit score is equal to or less than 624, it’s considered poor. However, from 625 to 699, you have a fair credit score, and anything higher than 700 is good. 

Can Self-Employed Individuals Get a $1500 Loan?

Yes, but similar to Centrelink recipients, not all lenders will accept their applications. That’s why it’s best to check the eligibility criteria of any lender before applying. 

How Long Does It Take to Get the Loan Money?

In general, once you’re approved, you can get the money on the same day. 

How Often Are the Loan Repayments?

Most lenders offer you the choice between weekly, fortnightly, and monthly repayments. So, choose what’s best for you and make sure you make your payments on time. 

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What Can You Use a $1500 Loan for?

Anything you want, really. Whether you want to spend on a short holiday or pay for a doctor’s bill, you’re free to use the money however you choose. 

Conclusion

Thankfully, bad credit doesn’t immediately disqualify you from getting a $1500 loan. In fact, many private money lenders will be willing to loan you the money, even after taking your credit history into account. 

On your part, all you need to do to get the loan is submit an online application. Then, if the lender approves it, you can expect the money to be in your bank account in less than a day. 

After that, you just have to make your loan payments on time until the loan is cleared off. So, don’t delay or miss your payments. If you do, you’ll be subjected to numerous late fees, which over time, can get seriously expensive and put you further in debt. 

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