Best Personal Loans for Bad Credit: Top Picks for August

Liberty Financial offers personal loans starting at 5.67% p.a., making it a strong choice for borrowers who don't fit traditional profiles. Its B Corp certification and flexible lending criteria appeal to those with non-standard credit histories. However, as a non-bank lender, it lacks deposit accounts.

Westpac provides loans from 7.00% p.a. with the added benefit of no early exit fees on unsecured variable loans. This is an advantage for borrowers who need flexibility in repayment terms. Although it requires strong credit for the best rates, existing customers may find the convenience of branch access beneficial.

Plenti offers unsecured personal loans with a starting rate of 6.17% p.a. and no monthly or early repayment fees. This fintech lender is ideal for those who prefer a fully digital experience, and its fast funding within 24 hours of approval is a significant draw.

Commonwealth Bank's personal loans start at 7.25% p.a., offering both fixed and variable rates. While the bank's strong branch network is a plus, the $250 establishment fee on unsecured loans can be a drawback for some borrowers.

ING's personal loans start at 6.19% p.a., with no early repayment fees. The competitive fixed rates and a fully online application process make it a solid choice for tech-savvy borrowers. However, the absence of a variable rate option might not suit everyone.

OurMoneyMarket offers rates starting at 5.95% p.a. with no ongoing monthly fees. Their Rate Beat guarantee is a highlight for borrowers with excellent credit, but the maximum loan term is only five years, which could be limiting.

Harmoney offers unsecured loans from 5.76% p.a., a market-leading rate in Australia. Its fully online application process and transparency as an ASX-listed company enhance its appeal, though the $70,000 cap might not suit high-value borrowers.

NAB's personal loan has a capped rate of 12.99% p.a., offering big-bank reliability. They currently waive the $250 application fee, but the $15 monthly account fee might be a consideration for borrowers on a tight budget.

ANZ provides both fixed and variable rate options starting at 7.49% p.a. The ability to borrow up to $75,000 with a strong branch network is appealing, yet the fees and excellent credit requirement for the lowest rates may deter some.