Compare No Credit Check Payday Loans

What exactly is a payday loan?

Payday loans are commonly sought by people who have to pay out on an expense that has come upon them suddenly and abruptly, like a utility bill, hospital bill, a fine or expiation, or a repair and maintenance job around the home. The loan is usually between $100 and $2000 and has a total duration of between 16 days and one year.

 

Why doesn’t your credit history get checked?

If you want to approach a credit provider for a loan, it’s worth knowing that most of them will not do a credit check on your credit history. This is called a no credit check loan. These types of credit providers are more interested in your current financial circumstances, making them different to banks and other financial institutions. What this also means is that if you have bad credit, you can still find a no credit check provider to give you a loan.

 

5 steps to get a no credit check payday loan

Here’s what to consider if you want to find a no credit check payday loan:

  1. Comparisons:Make sure you do your homework on providers and shop around. Call them and ask about their fees, repayment terms and any other things you need to know. There are plenty of providers like this out there on the market, so be sure to do some thorough research before jumping in.
  2. Limit: Is there a cap on what you can borrow from your provider if it is your first loan? It makes good financial sense to only borrow exactly what you need and no more so that you don’t end up repaying over and above what you need.
  3. Budgeting:Make sure you understand the payment terms of the provider you choose and have the capacity to make them a part of your weekly budget. Making sure that you can pay what is required on repayments is essential before deciding on a provider.
  4. Organisation: Though many no credit check providers don’t check your credit history, they will need to see some documentation from you before giving you the loan. Make sure that you have organised all of the relevant documents before going to the credit provider, including identity documents, employment verification, banking details and any Centrelink payments.
  5. Application: Once you have all of your documents and your information ready to go, you can apply for a payday loan online quite easily.

 

How do you get approved for a loan?

Before being approved for a loan, the provider will look at how much you are paid by your employer and how regularly you are paid. The provider will then lend you a total amount of money based on this information; so if, for example, you get paid a total salary of $35000 per year by your employer on a monthly basis, the credit provider would take this into account and determine how much they can lend you and how long it would take for you to repay it back to them.

The truth is that there is no point in a credit provider offering you a payday loan without you being able to repay it. They want you to be able to pay them back, which is why many of them provide a plan of repayments, frequency of repayments, and then direct debit this amount from your bank.

 

How you can compare payday loan brands

There are many payday credit provider available, and it’s important to find the one that is best for you and your financial situation. Consider the following when choosing a provider:

Fees

Fortunately, payday providers in Australia are restricted by ASIC on what they can charge for fees. For a credit extension of less than $2000 that has a total term of between 16 days and 12 months, credit providers can only charge:

  • A twenty percent establishment fee of the total credit extended,
  • A monthly fee for account keeping of only four percent of the credit extended,
  • A set government charge and default fees,
  • An enforcement expense for going to court if you don’t repay the loan.

Ensure that you find out what the fees and repayment terms are before signing on the dotted line.

The Lender

Many providers of payday loans only operate online, so it is not always an easy task to find out whether they are legitimate or not. In cases like this, the best thing to do is to go to their website, see what their terms and conditions are, and read carefully through their “About us”, “FAQ”, or “Help” pages if they have them. If they have listed a physical address and other contact details, make sure you communicate with them.

It is also worth checking out online reviews and testimonials from other customers if they exist. Also check to see if they offer bank grade encryption and security as part of their website.

Loan Terms

If you require a certain amount of money in the loan, check out the loan terms on the comparison tables on Comparefirst.com.au. Just keep in mind that the more you are loaned, and the longer the total duration of the loan, the more your repayment amount and fees will be.

Features and benefits of no credit check payday loans in Australia

  • Flexible repayment options: Providers will want to know whether you are paid weekly, fortnightly or monthly and can tailor a flexible repayment plan around your income. On the day that your repayment of the loan is due, it is usually debited direct from your bank account.
  • No credit checks at all: Even if you have a poor credit history, you can still obtain a payday loan. Payday loan providers are only interested in your current financial circumstances.
  • Ability to get finance quickly: Due to the nature of payday credit providers, they usually have rapid approval times. This means that you can have often have your loan on the same day or the next business day.

 

What should you avoid with these loans?

When looking for a payday credit provider, avoid the following:

  • Providers who charge more in fees and rates than government regulations allow,
  • A credit provider that offers loans that are guaranteed,
  • A loan that you are not confident you can repay,
  • Credit and loan terms that don’t seem right or that you are uncomfortable with for any reason.

 

Is a payday loan your best option?

The truth is that if you don’t want any debt, getting a payday loan is not the answer. You need to carefully consider whether you really need a loan or whether there are other better options. Is a payday loan the right type of loan for you?

If you do find yourself in financial trouble and need some quick cash, here are some alternatives:

  • Negotiation:If you find that you are struggling to pay utility bills like electricity, water and gas, it is well worth your time to get in touch with each provider and talk to their hardship officer. Let them know your situation, how much you can pay, and have them come up with a plan of payments that works for you. You may even be able to apply for an emergency bill voucher to help you out.
  • NILS® or StepUP loan:In some cases where a person is on a low income, they can apply for a no or low interest loan to help them out with bills and other household expenses.
  • Centrelink advance payment:If you are already on Centrelink benefits or are eligible for them, you might also be eligible for an advance payment with no interest attached.

Important note on fees

It is also worth knowing that these credit providers cannot charge interest in the loan amount, but the cap on these fees doesn’t apply to credit and loans extended by institutions like banks, building societies and credit unions.

If you fail to repay the loan on the date that it is due you will be charged a capped fee until the amount is paid in full. This is why it is a good idea to find out what the fees and repayment terms are before signing on the dotted line. From July 1st 2013, the amount that a provider can charge if you fail to repay the loan is twice the amount originally loaned.

Frequently Asked Questions

When you apply for a payday loan, you’ll be protected by bank grade encryption during the application process. This means that your personal and financial details are as safe as they would be at any large bank in the country.

To make sure of your security, it’s also important to check out the credit provider before committing to them. Do they have a street address and contact details, for example?

Credit providers in Australia are required by law to lend money and extend credit in a responsible manner. This means that not everyone will actually qualify for a loan, and a credit provider would be irresponsible if they:

  • Extend credit to you many times over a short duration,
  • Offer credit to you when you are unable to meet other expenses because most of your income is tied up repaying the loan amount.
It’s important to know that if fifty percent or more of your income comes from Centrelink benefits, any repayments on the payday loan being applied for must not be more than twenty percent of your total income. You will not be offered the loan if this is the case.
There are regulations that restrict lenders from charging too much in fees. The fees you pay always depend on the amount of credit extended, but providers can only charge up to the following amounts:

  • A twenty percent establishment fee of the total credit extended,
  • A monthly fee for account keeping of only four percent of the credit extended,
  • A set government charge and default fees,
  • An enforcement expense for going to court if you don’t repay the loan.