No Credit Check Loan

No Credit Check Loans

If you think that your credit history is going to stop you from getting a loan you’ll be pleased to hear you can get finance without having a credit check performed.

Having a negative mark on your credit history can damage your chances of getting access to credit through a loan. If life gets in the way and you find yourself needing money quick then it may feel like you don’t have any choices to get a loan if you’ve got a bad credit history. If you have bad credit and need a loan now then you can consider taking out a no credit check loan. The lenders that offer these kinds of loans will have more flexible lending criteria. They are more accommodating than other loan providers so even people that have bad credit history can apply for loans with them.

To give you an example of what these loans are like here is a sample loan by the lending company Sunshine Loan Centres. They have what they call the Sunshine Short Term offer. It’s available for employed people that have poor credit ratings. You can get quick access to a loan of up to $1,800 with a loan term of between 16 and 30 days. It takes about 30 minutes to be approved and the overall cost of borrowing $100 would be 20% of the borrowed amount plus 4% of the borrowed amount each month. You can apply if you have bad credit and even though there isn’t a credit check you have to be employed to get the loan.

Before we continue we have a quick warning about borrowing. You need to ask yourself if you really need a loan today. Borrowing a small amount of money can be expensive and it may not solve the money problems you’re currently facing. Please check the options you have before deciding on taking out a loan.

If you would like more information about alternatives to borrowing and ways you can manage your bills and debts then please call 1800 007 007 to get free independent financial advice. If you’re having trouble paying your utility bill then talk with your suppliers for electricity, gas, water or phone company to see if you can arrange a deal. If you are on government benefits and you need money fast you can phone 13 17 94 to see if you can have your Centrelink payment sent early. If you’re unsure then head to the MoneySmart website provided by the government to find out more information about small loans and alternatives to them that could be a lot of help.

How Does a No Credit Check Loan Work?

A lender that will offer you these types of quick loans without checking your credit history focuses solely on how you are currently doing financially. They look at your current income and expenditures and assess if you will be able to pay back the loan. They also take a look at if you’re currently repaying a loan, how often you receive your income, and your employment (or lack thereof). If you are a centrelink recipient then they will look at the kinds of payments you receive and how much you receive.

How much you repay is going to be structured around how much you are paid. The repayments are also typically paid back through direct debit. These lenders are regulated and as a result they are not legally able to charge you more than the ASIC guidelines say they can in fees. They are also unable to approve you for a loan that they feel you would be unable to repay.

Four Questions For When You’re Looking at Quick Loan Options

When you’re looking for a quick no credit check loan you need to find a reputable lender. While it’s not too common there are still some loan sharks out there in the world of payday lending. These lenders will approve you even if they know you can’t pay them back. You should always compare your options and ask yourself the following four questions in order to avoid a disreputable lender.

What are the fees?

Payday lenders have their fees capped at a certain amount and they can’t charge you more. If the loan amount is less than $2,000 with a repayment period of between 16 days and a year then the lender that gives you the money can’t charge you more than a 20% establishment fee and a 4% monthly fee. Thanks to the rise in competition some lenders have taken to charging less than the maximum.

How transparent is the company?

Many payday lenders operate exclusively online. It makes it easier for you to apply but it also makes it easier for them to hide. Take a real look at their website before applying for a loan with them. Look for their loan terms and see if they make all the information clear to you. They should have an FAQ and, at the very least, a way for you to contact them.

How quickly are applications approved?

Different payday lenders will have different turnaround times. If you really need the money quick it’s important that you check the turnaround time and find a lender that can pay you quickly. The fastest turnaround times for payday lenders is roughly an hour or two after the application is approved. At the most you will be waiting for your money for a business day.

Are you even eligible for the loan?

The most important question to ask yourself before you even submit the application is to ask if you’re even eligible to get the loan. While you will not be subjected to a credit check there are still requirements that you need to meet. You will need to meet certain requirements regarding your income, employment, residency, and some other factors.

The Pros and Cons of No Credit Check Loans

The Pros

  • With these loans you almost always have quick access to your money so they are great in a pinch
  • The fees being set and capped make it easy for you to budget around your repayments and stay on top of them
  • These loans are also easy to apply for and convenient for you as almost every payday lender has an online application process and some even have mobile apps

The Cons

  • These loans typically have a higher cost attached to them compared to the standard bank fees on regular loans
  • You need to practice extra caution when finding a lender as some of them will approve you even when they know you can’t repay the loan

What You Need to Avoid

As is the case with any loan out there you need to consider the fees and rates that a lender will charge you before you go for the loan. You need to also be looking at the different repayment options available for the loan and if you can budget around them. It’s important that you work out the total cost of the loan and when you need to make repayments so you know for sure you can repay the loan.

Let’s take a look at a case study to show you how such a loan might work. We’ll be looking at the story of Katie; who needs a little help paying her rent.

She works the night shift at her local supermarket but because of budget cuts she’s not working as many shifts as she used to. She’s come behind on her rent but things have turned around at work and she’s got two full weeks of work ahead of her. She’s also in arrears for her phone and electricity bill so her credit rating has taken quite the pounding. Unfortunately her family don’t have the money to lend her but she’s found out about getting quick loans without having her credit checked.

Katie works out how much money she has to repay and works out a budget that allows her to make the payment the next time she gets paid. Her application is approved and she uses the money to pay off her rent and set up a payment plan to sort out her utility bills.

The next time she is paid by her employer the money for the loan is automatically taken out of her account and she’s in much better financial shape.

How to Apply

A no credit check lender will usually have an online application process. Some payday lenders also approve you instantly. During the application process you will need to provide them with some personal information including your name and contact number. You will also need to supply information about your current financial status including your income and assets. To apply for a loan you also need to a permanent citizen and be over the age of 18. Here is a rundown of everything you need to prepare in advance:

Personal Information

You will need to supply your name, date of birth, contact details, and the number on your driver’s license.

Employment Details

You will need to tell the lender about where you are employed, the work that you do, and provide contact details for your employer.

Centrelink Information

If you’re on Centrelink payments then you’ll need all the information regarding those payments.

Internet Banking

If you can’t supply the lender with PDF files of your statements then you’re going to need to give them access to your online banking information so they can take a look at your bank statements for the past 90 days.


Not every lender will ask for more information but you may be asked to provide details on your current income and expenditures. The lender will then verify this information using your bank statements.

commonly asked questions

There is no single answer as the amount varies from lender to lender. Check with the lender before you submit your application. How much money you can borrow typically depends on your current financial situation and the repayments that the lender feels you can reasonably afford.

Because these loans don’t require a credit check even people with poor credit can apply and receive them. Whether you are eligible or not depends on the lender. Typically to be eligible for a loan you need to be at least 18 years old and have some form of income.

If the loan amount is less than $2,000 and it is paid back in less than a year then your repayments will be the amount you borrow plus 20% of the loan amount as an establishment fee and a monthly fee equal to 4% of the loan amount. If the amount you borrow is more than $2,000 then you need to check the repayment terms with your lender to find out the details.

You can still apply with some lenders if you rely on centerlink payments as your main source of income. These lenders will place more stringent restrictions on their loans however. Some lenders who accept Centrelink recipients will not accept people receiving Newstart. Always check with the lender before applying.

How quickly you get your loan depends on the lender. Some lenders will give you the money hours after being approved and could get the money to you on the day that you apply. If you apply for a loan outside of regular business hours or have a smaller credit union for a bank it might take longer to receive the money. .

Many payday lenders give you the option of paying back the loan early and will not even charge you an extra fee to do so.

If you’re going to have trouble repaying the loan you need to contact the lender as soon as possible. If you get to them fast enough they may be able to offer you a payment plan or hardship agreement. If you don’t contact them then you default on the loan and will likely be charged fees for late payment or defaulting.

No credit check loans are completely legal. If the lender feels that you are currently in a financial situation healthy enough to make the repayments they won’t take your previous credit history into account when processing your application and will not even run a credit check.