No credit check loans are given out by lenders without conducting any credit checks on the borrower’s credit history, which is not typical to most types of loans. While credit checks are the backbone of almost every loan approval decision, there are some lenders in Australia who are willing to offer a loan with no credit check. Credit checks are important for ensuring that a borrower can repay their loan and to identify if a borrower has ever had financial issues, such as bankruptcy, but no credit check loans can help you, no matter your financial history.
Note: Viva Payday Loans do not perform a credit check, however, the lender you are referred to may conduct a full or partial credit check as part of their assessment policy. Viva Payday Loans has no control over the assessment of applications.
For those with a poor credit score, cash loans with no credit check are a great option as the approval decision is not solely based on their credit score, and other financial factors are taken into account, such as the applicant’s income and recent financial history. It is possible that no credit check loans in Australia may carry stricter eligibility criteria, such as a minimum available income from a specific form of employment. It is a good idea to check these requirements before selecting a lender for your no credit check loans.
Despite no credit check loans being an available option for those seeking financial help, if you feel that you may not be able to apply for any reason, it is better to discuss this with your lender, or contact us and consider other means of financial support before making the decision to apply.
Note: Viva Payday Loans is a lender-finder service in Australia, we do not offer financial advice. Please consider seeking independent legal and financial advice to check how the information and ideas presented on this website relate to your unique circumstances.
How Are Some Lenders Able To Provide No Credit Check Loans?
It may seem unusual that some lenders are able to provide cash loans with no credit check, however, these lenders specialize in providing loans to applicants with bad credit history by evaluating other financial indicators instead. This could include current income and recent credit behaviour, rather than looking at a borrower’s past financial issues.
Understandably, the risk is higher for the lender of a loan with no credit check compared to lenders that require a credit check on every application, the applicable interest rates and charges may be slightly higher. However, these fees are regulated as per the requirements set by ASIC.
What Options Are Available For Cash Loans With No Credit Check?
For no credit check loans in Australia, three are three types of loan that lenders are willing to provide without evaluating credit history – an unsecured loan, a secured loan, or a payday loan.
An unsecured loan allows an applicant to borrow up to $10,000 or even more in the case of some lenders. Since the loan amount can be fairly large, the interest rate charged by lenders is higher to compensate for the additional risk. However, for all loan amounts exceeding $5,000, the maximum interest rate charged is usually 48% per year.
A secured loan significantly reduces the risk for the lender as the applicant is required to pledge a personal asset as collateral against the loan amount, such as a car. Since the lender’s risk is partially or fully covered, the rates and fees charged on the loan are substantially low, and the lender can give a loan with no credit check.
A payday loan is a short term loan that is given by lenders in a very small amount, usually not exceeding a period of one year and an amount of $5,000. The starting amounts can be as low as $100 with a lending period as short as 6 days. This option is typically used by those looking for emergency cash loans with no credit check.
The Application Process and Requirements For No Credit Check Loans
Every lender and loan type has its own application process, although most require the same set of information to formulate a loan approval decision. Most lenders and no credit check loan types require borrowers to fulfil the following eligibility criteria. Applicants must:
- Be over the age of 18
- Provide proof of regular income, over 50% of which comes from sources other than Centrelink or any other government benefits.
- Submit bank statements of at least three to six months. Lenders use this information to evaluate the applicant’s income and expense equation and the amount in excess left for other uses at the end of every month. Recent bank statements also provide great insight into the applicant’s recent financial health and behaviour.
- Provide details of all existing liabilities, including credit card debt and any other outstanding loan obligations.
Which Loan With No Credit Check Is Right For You?
When it comes to selecting the best no credit check loans in Australia for a borrower’s needs and personal situation, there are a few pertinent questions that should be asked to understand which loan would be most beneficial.
1. Does The Lender Have A Trustworthy Reputation?
Many lenders exist in the industry that offer emergency cash loans with no credit check with the purpose of trapping borrowers in a debt cycle to maximise their profits. Most of these lenders offer no credit check loans to entice applicants with bad credit history. While this is something that no one wants to think about, it is a reality, so applicants need to make sure that lenders hold accreditation and have a trustworthy reputation. This is one of the first things that should be done before entering into a loan contract.
2. How Much Will Be Charged On The Loan?
Transparency when discussing all rates and fees associated with no credit check loans is the sign of a good lender. There might be an additional interest rate charge with a few contingent charges on top of the establishment and monthly fee, which you should know about before entering into a repayment contract with a lender. If a lender is reluctant to discuss further costs, you might want to reconsider applying.
3. What Are The Lending Terms?
Every lender is different and each sets a unique lending term that must be assessed the borrower to evaluate the total charges applicable on a loan with no credit check over its entire term. Applicants should only sign up for cash loans with no credit check on a term that they can realistically afford, especially because a longer loan term means higher charges and fees. If this something that you are worried about, please contact your lender for support before entering a loan contract.
4. Is There Repayment Flexibility With The Loan?
There are two factors to consider when it comes to flexibility in the frequency of no credit check loans repayments. Firstly, some lenders offer applicants the option to choose their repayment date on their own, while others set a fixed repayment date without considering the borrower’s individual circumstances. Secondly, it is always better if the lender allows loan amounts to be paid earlier than the due date, giving borrowers the option to reduce their outstanding balance, which reduces the interest and fees charged on the loan over its term. It is worth checking to see if your prospective lenders charge an additional fee on early repayment to avoid paying more than you originally intended.
No credit check loans in Australia are a great option for those who have a bad credit rating, but can prove that they have a stable financial condition that has been managed for at least the past six months. Lenders focus on other financial factors to evaluate an applicant’s borrowing abilities, rather than focusing on their credit score. If you are ready to find a no credit check loan, please apply now. However, if you find yourself in financial difficulty with no means of repaying no credit check loans, please speak with your lender before taking out a contract, or contact us.