$5,000 loans

How can I get a $5,000 loan?

Taking out a personal loan is probably the simplest way for most borrowers to get a $5,000 loan.

• While payday loans are advertised as fast, easy ways to get smaller loans, they're limited by law to $2,000 and have very high fees.

What kind of personal loans can I use to borrow $5,000?

Most people looking for a $5,000 loan will choose an unsecured personal loan. These loans are easier to get and you don't have to put up a car as security.

Secured personal loans typically require a new (or newish) car as security. While some lenders may offer you a lower rate (because the loan is lower risk to the lender), these days the lowest unsecured personal loan rates are often just as low.

How much does a $5,000 personal loan cost?

The exact cost of a $5,000 personal loan depends on:

• The length of the loan.
• The interest rate.
• The fees.

Here are 3 examples of different $5,000 personal loans and their total costs.

$5,000 personal loan cost examples

1. You borrow $5,000 over 3 years at a rate of 7%. There's a $10 monthly fee. Your monthly repayments = $165. Your total cost in fees + interest = $918.
2. You borrow $5,000 over 4 years at a rate of 10%. There's a $5 monthly fee. Your monthly repayments = $132. Your total cost in fees + interest = $1,328.
3. You borrow $5,000 over 5 years at a rate of 12%. There's an $8 monthly fee. Your monthly repayments = $120. Your total cost in fees + interest = $2,154.

These are just simplified examples that don't take your personal circumstances into account. Use a personal loan repayment calculator to figure out your own loan costs.

How do I compare $5,000 loans?

• Look at the rates and fees. A loan with a lower rate and fewer fees will save you money.
• Choose the right loan term. A personal loan with a 1-year term is usually cheaper than a 5-year loan because you pay less interest over a shorter time. But your monthly repayments will be higher. So the right loan term is about balancing your monthly and your overall costs.
• Look for a loan with features you need. Some personal loans allow you to make extra repayments without a fee, which helps you pay off the loan faster.
• Check the lender's eligibility criteria before you apply. Don't waste time (and hurt your credit score) applying for a $5,000 loan you're not eligible for. Make sure you meet the lender's criteria first.
• Get your credit score in good shape. The lowest rates and the best deals go to borrowers with excellent credit scores. Improve your credit score before applying for a loan.

Check your credit score for free through Finder

Can I use a credit card to borrow $5,000?

You could get a credit card with a $5,000 credit limit. But it's probably a bad idea if you have to cover a single $5,000 purchase.

The card's transaction limit might not allow you to spend this much in one go.

And if you don't pay off the card within the interest free period (usually up to 50 days) then you'll pay interest at a much higher rate than a personal loan.

Can I borrow $5,000 if I have bad credit?

Borrowers with bad credit who need money quickly often turn to:

• Payday loans. Payday lenders offer fast approval and are only available up to $2,000. Some lenders may go as high as $5,000 - but it is not considered a payday loan.
• Bad credit personal loans. Some lenders specialise in lending to borrowers with bad credit or limited proof of income.

When borrowing as much as $5,000, short-term loans and bad credit loans are going to become very expensive. These loans have higher interest rates and hefty fees. This makes any loan expensive, but the more money you borrow the worse it gets.

Can I get a $5,000 personal loan with guaranteed approval?

Beware of lenders whose websites mention "guaranteed approval" for small loans. The truth is any regulated lender will perform some kind of check on your credit score and suitability as a borrower before lending you $5,000.

These lenders are often going to charge you very high interest rates and fees.

If a lender is truly promising you "a small personal loan with guaranteed approval" they are likely a scam. You can check ASIC's register to see if a lending business is appropriately licensed.

Which lenders offer $5,000 bad credit loans?

The following lenders offer loans up to $5,000 for bad credit applications. Be sure to compare lenders before applying:

Alternatives to a $5,000 personal loan

If a personal loan doesn't work for you and you'd rather avoid a pricy payday loan, you could consider one of the following:

• Credit card. If you have an existing credit card you might be able to get the credit limit raised to $5,000. You might already have a limit that high. This could be useful to cover a one-off purchase instead of a personal loan. Credit cards also offer interest-free periods. But after that, you'll be charged a higher interest rate compared to a personal loan. If you can't pay back the $5,000 purchase in a short time this will end up being quite expensive.
• Home loan top up. If you have a home loan and you've been making repayments on time, your lender may approve a top up to the home loan, allowing you to borrow slightly more against your equity and put it on your loan. Your home loan will have a lower rate than a personal loan. But keep in mind that a home loan is a much longer debt, so adding to it means you pay more in interest in the long run.
• No interest loans (NILs). While you can't get $5,000, eligible Australians on low incomes can qualify for no interest loans from community-led non-profit organisations. You don't get charged interest, but it's also not really a loan. You can only use the money for an approved expense, such as car repairs, medical expenses or an essential household item.

Why compare personal loans with Finder?

We're free

Our personal loan comparison is completely free to use. There are no costs at all for you to use our database to find a better deal. Better still, we regularly run exclusive deals that you won't find on any other site.

We're experts

We've researched and reviewed hundreds of loans as part of our Finder Awards. Our database and tables are always up-to-date and our in-house experts regularly appear on Sunrise, 7News and SBS News.

We're independent

We are independently owned and have a mission to help Australians make better financial decisions. That means our opinions are our own and you can compare nearly every personal loan in Australia (and find a better deal).

We're here to help

Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.

Frequently asked questions

• How do I apply for a $5,000 loan?

  Click "Go to Site" on Finder's comparison table to begin your applications. Most lenders have applications online, making it easier to access.

• What if I need a $5000 loan ASAP?

  Some lenders have a faster approval time than others and offer quick loans. While you may get the money faster, it's important to be aware that these loans may charge higher interest rates.

• Is it hard to get a $5,000 loan?

  If you have a steady income, a decent credit score and minimal outstanding debts then getting a $5,000 loan approved shouldn't be too difficult.

  Many lenders will approve much larger loans for creditworthy borrowers.

• What happens after I submit my application?

  This will differ between lenders. However, you will typically receive a notification on whether or not your application has been approved. The lender will also provide instructions for the next steps.

• Are my details secure?

  When you apply for a loan online, your details are securely transmitted over an encrypted connection. The majority of the sites you apply through use 128 bit SSL encryption to ensure your details are safe and secure.

• Can I get a $5,000 loan if I'm unemployed?

  You may be able to apply, but you'll need to be receiving some form of income to qualify. Lenders will look into whether you can afford to repay the loan. If you receive Centrelink payments, it shouldn't exceed 50% of your total income. You can read more about loans for unemployed applicants in our guide.