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What is a $1,500 payday loan?

A $1,500 payday loan is a high-cost, short-term loan that allows you to borrow $1,500. Payday loans can be used for a range of expenses, such as utility bills, medical costs or temporary cash shortfalls. Although payday loans come in a wide range of amounts and repayment periods, they are generally for small amounts and are paid back over a short amount of time.

What is a $1,500 bad credit payday loan?

A $1,500 bad credit payday loan is a payday loan that is available even to borrowers with bad credit. A bad credit score can be the result of unpaid debts or late payments, and can make it difficult to be approved for a loan through traditional channels.

Bad credit payday loans are designed for people with bad credit scores who have been turned down by other lenders. Some lenders may even offer payday loans for bad credit instant approval, which will tell borrowers immediately whether they have been approved for a $1,500 payday loan.

7 reasons people use payday loans

  1. Food
  2. Rent
  3. Electricity bills
  4. Car repairs
  5. Medical emergencies
  6. Christmas gifts
  7. Mortgage repayments

Who offers $1,500 payday loans?

A huge range of online lenders offer $1,500 payday loans. It’s helpful to compare payday loan lenders to find one that suits your financial situation.

How do you take out a $1,500 payday loan?

Most payday loan lenders allow borrowers to apply for a $1,500 payday loan through an online application. The application is then reviewed and either approved or denied based on a number of factors such as credit scores and income.

How long does it take to get a $1,500 payday loan?

In general, $1,500 payday loans are designed for people who need cash fast, which is why lenders work to provide your funds as soon as possible. Some payday lenders allow you to pick up your loan amount immediately in store, while others deposit the amount into your bank account the same day or the day after you apply.

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What are the pros and cons of $1,500 payday loans?

Like all borrowing options, payday loans have both benefits and drawbacks. Payday loans allow you quick access to money you need, and it’s often easy to apply and get approved.

However, payday loans are a high-cost borrowing option. Fees are often high, which means borrowers end up paying much more than the original loan amount. The fine print of a $1,500 payday loans is also generally lender-favourable. For example, high fees might for non-payment, which might result in a troublesome cycle of debt for the borrower.

Can you get a $1,500 payday loan if you're on Centrelink?

Yes, people who receive Centrelink benefits can be approved for a $1,500 payday loan. However, the approval of any payday loan is always dependent on the lender. In some cases, Centrelink cannot be your primary source of income.

Some lenders may offer payday loans for bad credit on Centrelink, which would allow borrowers who receive Centrelink benefits and have bad credit to take out a $1,500 payday loan.

Case study: Jessica faces the fine print

A pipe bursts in Jessica’s apartment, causing damage to many of her belongings, including her laptop that she needs to run her business. To buy a new laptop, Jessica decides to take out a $1,500 payday loan. After her application is approved, she begins making repayments, but is a few days late making one of her payments. Jessica’s payday loan charges $7 each day a payment is late – something she had missed in the fine print. Because her payment was five days late, Jessica paid $35 more than she would have had to if she paid on time.

Can self-employed people get $1,500 payday loans?

Yes, self-employed borrowers can get a $1,500 payday loan, under certain conditions. Some lenders will not consider self-employed applicants, while others welcome all to apply and may even offer payday loans for self-employed people with bad credit. It’s best to check the eligibility criteria for any lender before applying for a $1,500 payday loan.

What are some alternatives to $1,500 payday loans? 

Alternatives to $1,500 payday loans include Centrelink advance payments, no-interest loans, negotiating with your utility provider or signing up for a credit card – but the suitability of these alternatives will depend on your specific situation.

If you’re eligible for Centrelink benefits, you may qualify for advance payment on your benefits to pay for essential expenses. Those with low income may be eligible for the No Interest Loan Scheme. If you’re behind on utility payments, talk to your provider to see if they offer payment plans that will help you better manage your debt. Signing up for a low-interest credit card may also help you cover necessary costs at a lower price than with payday loans.

Because of their high cost, $1,500 payday loans should only be used as a last resort. If you’re struggling with existing debt, financial counselling and the National Debt Hotline may be able to help.

Frequently asked questions

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.

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.

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.

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.

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.

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.

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.

Is a personal loan a variable or fixed-rate loan?

Depending on the personal loan lender, you may be able to choose between a fixed and a variable interest rate. But, there are a few distinct differences between the two, so it’s important to weigh up the pros and cons before deciding on what’s right for you.

A fixed interest rate loan gets you the convenience of knowing exactly how much you need to repay each fortnight or month. On the other hand, you generally won’t be able to make lump sum or advanced payments to close your personal loan early - or at least not without a penalty.

With a variable interest rate personal loan, you may be able to get a longer loan repayment term, with the option of paying off the loan early. You typically won’t need to pay any additional charges for an early full repayment either. The potential disadvantage with an interest rate that can change is that your repayment is not entirely predictable, as it can fluctuate with the market. However, you’ll likely have more options as more lenders offer a variable interest rate personal loan.

Can I merge my personal loan with my home loan?

Yes, you can refinance your home loan and, in the process, merge or consolidate your personal loan and home loan. By doing so, you can lower the number of debts you have, and you may also reduce the total interest you have to pay.

However, you should consult a financial advisor or a mortgage broker to confirm that you are decreasing your total outstanding debt, including interest payments. The repayment term for a home loan can be much longer than that for a personal loan, and by merging the two, you could be repaying a higher amount over the full term.

What causes bad credit history?

Bad credit history is caused by filing for bankruptcy, defaulting on your debts, falling behind on your repayments and having loan applications rejected. Lenders are wary of borrowers who demonstrate this sort of behaviour because it suggests they might struggle to repay future loans.

Borrowers with bad credit may find it more difficult to be approved for a loan, or they may get higher interest rates when they do get approved.

Which lenders offer bad credit personal loans?

Several dozen lenders offer bad credit personal loans in Australia. These are generally smaller lenders that aren’t household names.

What is an unsecured bad credit personal loan?

A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset, such as a car or jewellery, as collateral or security. Lenders generally charge higher interest rates on unsecured loans than secured loans.

What is a secured bad credit personal loan?

A bad credit personal loan is 'secured' when the borrower offers up an asset, such as a car or jewellery, as collateral or security. If the borrower fails to repay the loan, the lender can then seize the asset to recoup its losses.

How do you get a bad credit personal loan?

You can get a bad credit personal loan by applying directly to a lender, by going through a mortgage broker or by using a comparison website like RateCity.

How much can I borrow with a personal loan?

It’s unusual for a lender to provide a personal loan of above $100,000, although there is no formal limit. As with all lending products, each lender sets its own policies, while each borrower is assessed on a case-by-case basis.

What is a bad credit rating/score?

Credit ratings or credit scores are calculated by credit reporting bodies such as Equifax, Dun & Bradstreet, Experian and the Tasmanian Collection Service. These are separate organisations, so they use different systems.

Equifax gives scores between 0 and 1,200:

  • 833 to 1,200 = Excellent
  • 726 to 823 = Very good
  • 622 to 725 = Good
  • 510 to 621 = Average
  • 509 or less = Below average

Dun & Bradstreet (through the Credit Simple service) gives scores between 0 and 1,000:

  • 800 to 1,000 = High end
  • 700 to 799 = Great
  • 500 to 699 = Average
  • 300 to 499 = Room to improve
  • 299 or less = Low

Experian gives scores between 0 and 999:

  • 961 to 999 = Excellent
  • 881 to 960 = Good
  • 721 to 880 = Fair
  • 561 to 720 = Poor
  • 0 to 560 = Very poor

The Tasmanian Collection Service doesn’t give scores. Instead, it prepares credit reports for credit providers and then lets those providers make their own assessment.

When was comprehensive credit reporting introduced?

Comprehensive credit reporting was introduced to make credit reports fairer and more accurate. Under the previous system, credit providers only saw negative information about potential borrowers. Now, they're able to see both positive and negative information, which means that credit providers can see if a borrower’s negative credit behaviour is consistent or a mere one-off.