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What is a $1,200 payday loan?

A $1,200 payday loan is a high-cost personal loan that will give you a sum of $1,200 to be paid back over a specified period. In general, payday loans are worth small amounts and have short repayment periods. These loans are typically used for unexpected expenses such as medical bills or car repairs or emergency renovations.

What is a $1,200 bad credit payday loan?

A $1,200 bad credit payday loan is a quick loan available even to borrowers with bad credit. Unpaid debt or late payments can result in a bad credit score and make it difficult to borrow money from large banks or traditional lenders. Lenders that offer bad credit payday loans allow those with bad credit scores to apply and be approved for certain loans.

Who offers $1,200 payday loans?

A number of different online lenders offer $1,200 payday loans. These are usually smaller, lesser-known companies. To ensure you get the best payday loan for your needs, it’s best to compare several payday loan lenders.

How do you take out a $1,200 payday loan?

Generally, you take out a $1,200 payday loan by submitting an online application to your chosen lender. The lender will then review the application and either approve or deny your request. Most lenders provide an online form that is quick and easy to understand. Some lenders also allow you to apply at a physical office.

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How long does it take to get a $1,200 payday loan?

Payday loans are designed for those who need money quickly, which is why some lenders allow you to collect your funds immediately in store. Other lenders deposit your loan amount into your chosen bank account, and you may see the money come through the same day as your loan was approved or within the next one or two business days.

What are the pros and cons of $1,200 payday loans?

All loans have positives and negatives. A $1,200 payday loan allows you to access funds quickly and easily and can cover immediate expenses.

However, $1,200 payday loans also have drawbacks. Payday loans tend to have high fees, which means you’ll have to 'buy' the loan for a high price. The terms, or fine print, of payday loans tend to be lender-favourable and may include additional fees and costs. Before taking out a $1,200 payday loan, you should be sure that you can make payments on time, or it could end up pushing you into a cycle of debt.

Case study

Alice needs to borrow $1,200 to pay for emergency car repairs. She chooses a loan term of three months. The lender charges an establishment fee of 20 per cent, or $240. The lender also charges a monthly fee of 4 per cent, or $144. As a result, Alice’s repayments work out to be $226.29 per fortnight and $1,584 in total.

Can you get a $1,200 payday loan if you're on Centrelink?

Yes, borrowers who receive Centrelink benefits can take out a $1,200 payday loan, under certain conditions. Some bad credit payday loans require that Centrelink is not your primary source of income, while other lenders invite anyone to apply.

Can self-employed people get $1,200 payday loans?

Self-employed borrowers can take out a $1,200 payday loan depending on the lender. Some lenders cater to those who are self-employed or own their own business, with some even offering payday loans for self-employed with bad credit.

What are some alternatives to $1,200 payday loans? 

There are a number of alternatives to payday loans, including no-interest loans, Centrelink advances, negotiating with your provider, or low-interest credit cards. If you’re on low income, you may be eligible for the No Interest Loan Scheme, which is generally more affordable than payday loans. Borrowers receiving Centrelink benefits may qualify for advances on their payments. A low-interest credit card may charge a lower rate than most payday loans, making them a reasonable alternative.

If you’re struggling with your debt, financial counselling is available, and the National Debt Hotline may be able to help.

Frequently asked questions

How long do personal loans take?

Depending on the lender, some personal loan applications can be approved in as little as one hour, or you may need to wait until the next business day. If approved, you may receive your money on the same day, the next business day, or within the week.

Can I get a personal loan if I receive Centrelink payments?

It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.

Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.

Where can I get a personal loan?

The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:

There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

How are personal loans regulated?

Personal lenders in Australia are regulated by ASIC (the Australian Securities & Investments Commission) and must follow responsible lending rules. That means they can’t lend money without making “reasonable inquiries” about a borrower’s financial situation and ensuring the loan is “not unsuitable” for them.

What are the pros and cons of personal loans?

The advantages of personal loans are that they’re easier to obtain than mortgages and usually have lower interest rates than credit cards.

One disadvantage with personal loans is that you have to go through a formal application process, unlike when you borrow money on your credit card. Another disadvantage is that you’ll be charged a higher interest rate than if you borrowed the money as part of a mortgage.

Can I get a $1,500 payday loan with bad credit?

Yes, it may be possible to get a $1,500 payday loan with bad credit. Some payday lenders give loans to people with bad credit histories if they believe the borrower has the capacity to repay the loan.

Under Australia’s responsible lending rules, lenders aren’t allowed to approve $1,500 payday loans if they don’t believe the borrower can make the repayments.

Can I get a fast loan with bad credit?

Some lenders offer fast loans to borrowers with bad credit. Providers of small payday loans of up to $2000 or medium amount loans of up to $5000 may have no credit checks, though these lenders will usually want to confirm you can afford its loans on your income.

Are there emergency loans with no credit checks?

While many personal loans require a credit check as part of the application process, some personal loans and payday loans have no credit checks, which may appeal to some borrowers with a bad credit score.

Keep in mind that even if a loan is available with no credit check, the lender will likely want to confirm that you can afford the repayments on your current income.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

What do I need to get a fast loan?

Most lenders will need to you provide the following information in your application for a fast loan:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of any assets you own (e.g. car, home etc.)
  • Details of any liabilities you owe (other personal loans, credit cards, mortgages etc.)
  • How much you want to borrow
  • Over how long you want to pay it back
  • Purpose of your loan

Are there alternatives to $2000 loans?

If you need to borrow $2000 or less, alternatives to getting a personal loan or payday loan include using a credit card or the redraw facility of your home, car or personal loan.

Before you borrow $2000 on a credit card, remember that interest will continue being charged on what you owe until you clear your credit card balance. To minimise your interest, consider prioritising paying off your credit card.

Before you draw down $2000 in extra repayments from your home, car or personal loan using a redraw facility, note that fees and charges may apply, and drawing money from your loan may mean your loan will take longer to repay, costing you more in total interest.

Can you get an emergency loan on Centrelink?

When many lenders assess a borrower’s income to determine whether they can afford a loan’s repayments without ending up in financial stress, they may not count Centrelink payments as income for this purpose.

Before applying for an emergency loan, it may be worth contacting a potential lender to find out if they accept applications from borrowers on Centrelink.

Is it hard to improve your credit score?

It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. Some simple ways you can give your credit score a boost include closing extra credit cards, reducing your credit card limit, pay off any loans and make loan repayments on time.

As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.

Can I get a $2000 loan on Centrelink?

If more than half of your income comes from Centrelink benefits, it may be more difficult to have a $2000 loan application approved. Many lenders will check if you can afford a loan’s repayments on the income from your job before they’ll approve an application, and many won’t count Centrelink payments when assessing your income for this purpose.

Some lenders may offer $2000 loans to borrowers on Centrelink – consider contacting potential lenders to check before applying.

How long are $3000 loans?

Medium amount loans can be repaid between 16 days and 2 years. Many personal loans have terms between 1 year and 5 years, though some are as short as 6 months while others last for 10 years.

Generally, the shorter a loan’s term, the more expensive your regular repayments may be, but the less total interest you’ll pay. Loans with longer terms mean more affordable repayments, but more interest charges over the full term.

Do $4000 loans have no credit checks?

Many medium amount loans for $4000 have no credit checks and are instead assessed based on your current ability to repay the loan, rather than by looking at your credit history. While these loans can appear attractive to bad credit borrowers, it’s important to remember that they often have high fees and can be costlier than other options.

Personal loans for $4000 are more likely to have longer loan terms and will require a credit check as part of the application process. Bad credit borrowers may see their $4000 loan applications declined or have to pay higher interest rates than good credit borrowers.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

Can I get a bad credit personal loan with a guarantor?

Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.