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Home » AUSTRALIA PRIVATE LOAN FOR CREDIT SCORE UNDER 500

AUSTRALIA PRIVATE LOAN FOR CREDIT SCORE UNDER 500

AUSTRALIA PRIVATE LOAN FOR CREDIT SCORE UNDER 500

What does it mean in Australia to borrow cash with a credit score below 500 ?

In Australia, a private loan for credit score under 500 refers to a type of personal financing option available for borrowers who have very poor credit histories and cannot qualify for traditional bank loans.

In Australia, a credit score under 500 is considered “bad credit,” meaning mainstream lenders like banks are highly unlikely to approve a loan application.

The role of private loans for bad credit borrowers is significant in Australia’s financial system; they provide a safety net for people who have faced bankruptcy, defaults, or repeated missed payments but still need funds for emergencies, debt consolidation, medical bills, or essential purchases.

Am I eligible for a personal loan with a credit score under 500 in Australia?

Yes — you can apply for a personal loan in Australia with a credit score under 500, but approval is very limited and conditions are much stricter than for borrowers with good credit.

A score under 500 is considered very poor by Australian credit reporting agencies (Equifax, Experian, Illion), and most banks or mainstream lenders will reject applications outright.

That said, private lenders and specialist bad credit loan providers may still consider you. To offset the high risk, they usually impose stricter terms:

  • Higher interest rates and fees than standard loans
  • Smaller loan amounts (often capped at $2,000–$5,000 for unsecured loans)
  • Shorter repayment terms
  • A requirement for collateral (secured loans) or a guarantor in some cases

Which lenders in Australia make loans for individuals with credit score below 500 ?

If you’re looking for lenders in Australia offering loans to individuals with credit scores under 500, here are some well-known alternative finance providers that specialize in bad credit lending:

Notable Bad Credit Lenders in Australia

  • Fox Finance Group
    • Offers bad credit personal loans tailored for individuals with low scores—including those with defaults, bankruptcies, or payment arrangements.
    • Eligibility boosted by income over ~$45,000/year and no significant financial red flags.
      Fox Finance Group
  • Money3
    • Provides personal loans up to $30,000, and secured loans up to $75,000, even for applicants with poor credit or Centrelink income.
    • Explicitly states they are open to people who have been refused elsewhere.
      money3.com.au
  • Ume Loans
    • Specializes in bad credit auto and personal loans, with amounts from ~$5,000 to $40,000.
    • Focuses on second-chance lending—not relying solely on credit scores.
      Ume Loans
  • Finance One
    • Offers bad credit loans and services applicants discharged from bankruptcy or with defaults.
    • Fast application and approval (as little as 24 hours).
      Finance One
  • Rapid Finance
    • Matches borrowers with poor credit to suitable lenders via a brokerage model.
    • Offers services even if you’ve been declined elsewhere, are self-employed, or on Centrelink.
      gorapid.com.au
  • CashTrain
    • Offers bad credit personal loans up to $8,000 with quick approval and flexible payment options.
      Cash Train