How to Get Cash Loans Same Day With Bad Credit in Australia

If you have bad credit, you might wonder if there’s a same-day loan you can apply for in Australia. Luckily, some lenders specialise in helping people with bad credit get the money they need quickly. 

A same-day cash loan is a short-term loan that allows you to borrow money immediately and repay it in full as soon as possible. Usually, it ranges from 7 days to a month. However, getting cash loans same day with bad credit comes at a high cost. 

In this article, we’ll talk more about same-day loans for people with bad credit.

What this article covers:

Types of Same-Day Loans

Knowing the types of same-day loans helps you decide which one suits your needs if you need cash fast. Most don’t require credit checks, so your bad credit cash loan won’t be a problem. 

Credit Card Cash Advance

You can take a cash advance from your credit card. Most call it a revolving credit, where they can easily convert their remaining credit balance into cash. There are apps that can directly transfer the amount into your checking account nowadays.

cash loans same day bad credit

Title Loans

This type of loan needs your vehicle—such as your car—as collateral. Lenders only need the registration papers, so you can still drive it around. However, they may take possession of your car if you ever default on your loan. 

The amount you can borrow will not just depend on your car’s make and model but also its condition. Lenders can hire third parties to check your car’s condition. Even if you have a 3-year-old car but with many engine issues, you might risk your loan not getting approved. 

Payday Loans

You can easily get these loans online in exchange for your payroll account details. Depending on the terms and conditions, lenders can directly deduct the amount from it. Cash lenders may ask for a blank check or your debit card. 

Pawn Shop Loans

This is basically pawning a valuable item, like a family heirloom or jewellery. The amount you can get depends on the value of the item you’ll pawn. Pawn shops can take your pawned items if you default on your loan.

instant bad credit loans australia

Can You Get Same-Day Loans Even With Bad Credit in Australia? 

Yes. Lenders don’t just look at your credit history when lending money. They look into other factors, such as your salary and collateral. They make sure you have the capability to pay your loan even if you have a bad credit history. 

There are many same-day loans in Australia that cater to borrowers with bad credit. Finding the right lender might be a hassle, but Orange Loans can help you. 

We’ve partnered with thousands of quick cash loan lenders that offer same-day loans to people with bad credit.

How to Apply for a Same-Day Cash Loan With Bad Credit 

The process is just the same as applying for a cash loan with a good credit history. You must prepare the required documents, fill out an online form, and then wait for the approval. 

The requirements are the following:

  • Basic contact information
  • Employment information
  • 100-points of identification
  • Internet banking information
  • myGov account details (only if applicable)
  • Vehicle registration (for secured loans)

Most fast cash loans are unsecured loans. However, some lenders also offer secured cash loans. They’ll need collateral, such as the last requirement above (vehicle registration).

So, what are secured and unsecured loans?

instant loans bad credit australia

Secured Loan

A secured loan is a type of loan that requires collateral to be put up as security for the loan. 

This means that if you don’t pay your debt, the lender has the right to take back your collateral (the item you gave them as a guarantee of your loan) and sell it, using the money they get from selling the item to pay off your debt.

A borrower can apply for a secured loan if they have assets they can use as collateral—for example, a car. 

However, lenders will still review your attached collateral. They’ll look at the following:

  • The value of the asset. It must be high enough to cover all outstanding debts and interest charges if you default on your loan. 
  • The asset must be in good condition. If it isn’t structurally sound or in good working order, lenders will consider this when deciding whether or not they want to lend money against it.

loans bad credit online instant decision

Unsecured Loan

An unsecured loan is a loan that does not require collateral. Unsecured loans are sometimes called personal loans, typically used for personal expenses. They’re also known as signature loans because the lender only requires your signature to release the funds.

For example, you may qualify for an unsecured loan if you need cash for a vacation or to pay off a credit card balance and have no other assets to pledge as collateral. 

Most instant cash loans are unsecured and usually don’t require credit checks. However, they only offer small loans. Usually, they can range from $250 to $2,500. 

If you default on your loan payments, the lender could take action against you by filing a lawsuit or reporting your debt to credit bureaus, affecting your credit score. 

bad credit loans online instant decision

What Are the Pros and Cons of Same-Day Bad Credit Loans?

Pros

  • As the name suggests, you’ll get your loaned amount on the same day you applied for it. 
  • Lenders will look past your credit history. So, having a bad credit history won’t matter at all.
  • You’ll have the chance to build your credit score again. 

Cons

  • You’ll need a stable income source to get a high approval rate. 
  • You’ll likely need some sort of collateral since some lenders will need assurance that they’ll get something if you default on your loan.
  • They have higher interest rates.

Will My Bad Credit Affect How Much I Can Borrow From a Same-Day Loan? 

No. Most types of same-day loans will look past your credit record. You’ll only get higher interest compared to regular cash loans. 

However, the interest rates you’ll get might vary. Once you’ve been paired with a lender, read their terms thoroughly to know more about their rates.

So, how can you borrow an easy cash loan with bad credit without taking high-interest rates? Get a secured loan. Attach collateral to ensure your lender that they can get something from you if you default on your loan. 

They’ll offer you a bigger amount and won’t charge ridiculously high-interest rates.

online loans instant decision bad credit

Conclusion

Applying for a cash loan with a bad credit history might be harder, but it isn’t impossible. The process is still the same. However, there might be drawbacks, such as getting high-interest rates. 

Was the guide helpful? Check out these extra resources to delve deeper: