RateCity.com.au
powering smart financial decisions

Find and compare $5000 personal loans

TMD

Showing personal loans for
$
over
for a credit score of

Embed

Personal loan lenders we compare at RateCity

Learn more about personal loans

$5000 loans

If you need to borrow $5000, there may be several different options available to you, depending on your financial situation. If you’re covering a short-term expense, and expect to be able to repay the loan in a matter of weeks or over a couple of months, a short term small loan may be an option. If you expect it’d take you longer to repay a $5000 loan, some lenders may offer personal loans for $5000 that can be repaid over a year or longer.

Personal loans for $5000

Personal loans typically involve paying back the $5000 you borrow over a relatively long period of time, such as 12 months or more. Between these longer loan terms and the fact that personal loans tend to have lower interest rates than other credit options (e.g. credit cards, payday loans), personal loan repayments are often relatively affordable, making a smaller impact on your monthly household budget.

Before applying for a personal loan, you should calculate whether paying back the $5000 over the longer term may ultimately cost you more in interest charges and fees than some of the other options. The longer a loan’s term, the more repayments you’ll need to make, and the more times you’ll be charged interest on what you owe.

Payday loans for $5000

Technically, a loan for $5000 isn’t a payday loan, but a medium amount loan. According to MoneySmart, payday loans have a cap of $2000, while medium amount loans:

  • Let you borrow between $2001 and $5000
  • Are repaid between 16 days and 2 years
  • Have maximum one-off fees of $400
  • Charge a maximum annual interest rate of 48%, including all other fees and charges

It’s important to note that much like payday loans, the high interest rates and fees typically found on medium amount loans for $5000 could put you in real financial trouble if you miss a payment. Consider your financial situation and only apply for a $5000 quick loan if you are very confident that you can afford the repayments, and that you’re comfortable with the extra costs that may be involved.

Secured $5000 loans

If you’re looking to borrow $5000 and already own an asset worth a similar amount (e.g. a car, equity in your home) you may be able to use this asset as collateral to guarantee what you borrow. While this means you risk losing your security asset if you default on the loan repayments, you may be able to enjoy a lower interest rate, sometimes even if you’ve had problems with bad credit in the past.

A significant percentage of car loans are secured loans, and are guaranteed by the value of the car you’re purchasing. However, several of these secured car loans are only available for new cars under a certain age, which may cost more than $5000.

If you’re borrowing $5000 to buy something that can’t be used as security, or if you don’t already own a suitable asset for a secured personal loan, you may need to compare unsecured personal loans and similar unsecured credit options.

$5000 credit cards

One option for quickly borrowing $5000 is to use a credit card, though there are risks involved.

Many credit cards offer an interest-free period on purchases, often for between 45 and 55 days from the start of each payment cycle (often per month), provided you clear your credit card balance in this time. If you need $5000 for an urgent one-off purchase, and you’re confident you can afford to repay this debt in under a month or two, then you may be able to avoid being charged interest on this debt.

However, if you’re already managing an outstanding credit card debt, you likely won’t be able to benefit from your card’s interest-free days on new purchases until you’ve paid back your current debt.

Also, interest-free days may not apply to credit card cash advances, which could be a problem if you need to borrow $5000 in cash.

What’s more, as a credit card offers a flexible line of credit, you may be tempted to spend more on your card and increase the size of your $5000 debt – combined with interest charges on what you owe, you could soon find yourself stuck with a credit card debt you can’t easily afford to repay.

$5000 online loans

When you’re comparing different lenders before you borrow $5000, it may be worth including some online-only lenders in your search. Because these businesses tend to be more specialised and have fewer overheads than their competitors, online lenders may charge lower interest rates and fees than some other options. What’s more, your loan application can be conveniently completed from home.

One potential disadvantage of online-only lenders is that they may not be able to offer the kind of customer service you prefer. If your lender doesn’t have branches, you won’t have the option to meet in person and discuss your loan options face to face. Some online lenders only offer customer service by email or online chat, so you may not even be able to talk to the lender over the phone. 

Bad credit loans for $5000

Some Australians with bad credit who need to borrow $5000 may see their options limited by their low credit scores. Some lenders specialise in providing personal loans for people with bad credit, though these personal loans are more likely to have higher interest rates. To check your credit, you can order a free copy of your credit file from most credit reporting agencies.

If you have bad credit, don’t apply for a $5000 loan without first comparing the available options and checking the eligibility criteria. Consider contacting the lender and/or a financial adviser first to discuss your options. Make sure you’re confident that your loan application will be approved, as credit checks from lenders and knocked-back loan applications could further damage a bad credit score.

It may be possible to apply for some payday loans and similar small loans with no credit checks, as several of these lenders only look at your current ability to repay the loan when they’re considering your application. Just be mindful of the potentially high cost of some of these options, especially the high penalty fees if you were to miss a payment.

Can I get a $5000 loan if I’m unemployed/on Centrelink?

Most banks and similar lenders require proof of income before they’ll lend money in a $5000 personal loan. Even non-bank lenders and payday loan providers may not be willing to lend money to someone on Centrelink. This is because responsible lenders in Australia are legally obliged not to lend money to people who wouldn’t be able to afford the repayments. 

A small number of lenders are willing to lend money to unemployed borrowers and/or to borrowers on Centrelink benefits, depending on how much of their total income comes from these benefits.

If you’re struggling with bad credit, or find yourself in a difficult financial position, there may be options available that could help. Contact a financial counsellor or the National Debt Helpline for more information about how to recover from a bad credit or bad debt situation.

Frequently asked questions

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

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.

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.

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.

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.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

How long does it take to get a $5000 loan?

Depending on the lender, personal loans and medium-amount loans for $5000 can sometimes be approved in under an hour, and give you access to the money the same day. Other loans may take 24 hours or longer to assess your application, and you may not get the money for a few days.

Can I get a $4000 personal loan if I’m unemployed or on Centrelink?

Before most providers of personal loans or medium amount loans will approve an application, they’ll want to know you can afford the loan’s repayments on your current income without ending up in financial stress. Several lenders don’t count Centrelink benefits when assessing a borrower’s income for this purpose, so these borrowers may find it more difficult to be approved for a loan.

If you’re unemployed, self-employed, or if more than 50% of your income come from Centrelink, consider contacting a potential lender before applying to find out whether they accept borrowers on Centrelink.

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.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

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.

Does refinancing a personal loan hurt your credit score?

Personal loan refinancing means taking out a new loan with more desirable terms in order to access a more competitive interest rate, longer loan term, better features, or even to consolidate debts.

In some situations, refinancing a personal loan can improve your credit score, while in others, it may have a negative impact. If you refinance multiple loans by consolidating these into one loan, it could improve your credit score as you’ll have only one outstanding debt liability. Your credit may also improve if you consistently pay the instalments on time.

However, applying to refinance with multiple lenders could negatively affect your credit if your applications are rejected. Also, if you delay or default the repayment, your credit score reduces.

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 are the pros and cons of bad credit personal loans?

In some instances, bad credit personal loans can help people with bad credit history to consolidate their debts, which can help make it easier for them to clear those debts. This is because the borrower might be able to consolidate several debts with higher interest rates (such as credit card loans) into one single debt with a lower interest rate and potentially fewer fees.

However, this strategy can backfire if the borrower spends the loaned funds instead of using it to repay the new loan. Another disadvantage of bad credit personal loans is that they have higher interest rates than regular personal loans.

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

What do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.

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.