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No Credit Check Loans

Your loan application won’t appear on your credit report.

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By

Matt Corke

Updated

Fact checked

With a no credit check loan, lenders will not consider your credit score when assessing your personal loan application. Instead, they will look at your income, employment status and existing debts to determine whether you can repay the loan. As these loans are riskier for lenders, no credit check loans may cost more than standard personal loans.

⚠️ Warning about Borrowing

payday-warningDo you really need a loan today?*

It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:

  • For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
  • Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
  • If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94

The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

What is a no credit check loan?

A no credit check loan is a personal loan where the lender doesn't perform a credit check on the borrower. This has 2 benefits. The first is that your credit score won't be taken into consideration. This means that if you have no or a bad credit history, your credit score won't play a role in your ability to get a loan. The second benefit is that the loan application won't be recorded on your credit report. This means that taking out a personal loan won't affect your credit score.

How does a no credit check personal loan work?

A no credit check personal loan works like any standard personal loan, minus the credit check. Instead of taking your credit history into account, lenders will consider other factors to determine your ability to repay the loan. This includes your employment status, income, your recent bank statements and existing debt.

As with any loan, you will have regular repayments to make, inclusive of interest and fees. You will have a particular period in which to repay the loan, known as the loan term. Depending on the type of no credit check loan you apply for, your loan term can vary from as little as 16 days to 7 years.

You can generally use the funds however you like, from medical procedures to the purchase of appliances or new furniture, or to pay for a holiday. Keep in mind that some no credit check loans are more expensive than standard personal loans. You should only borrow if you can afford to repay it.

What kind of no credit check personal loans are available?

  • Secured personal loans. A secured loan will require the use of an asset as collateral for the loan. This can be equity in your home or your car. If you have bad credit, offering security can help increase your chance of approval for the loan. Additionally, some lenders won't perform a credit check on you. You should specifically look for lenders who offer secured loans without a credit check.
  • Payday or short-term loans. These are small loans with short terms. You can borrow up to $2,000, with terms from 16 days to 1 year. These loans are expensive and should be approached with caution. Ideally you should only apply in case of a financial emergency. These loans generally come with an establishment fee of 20% of the loan amount and a 4% monthly fee. These costs add up, making this an expensive option.
  • Medium-term loans. Like short-term loans, these loans are also expensive, but with higher borrowing amounts. Some lenders offer loans of up to $5,000 or $10,000. Interest is charged for these loans, and can be up to 48% of the loan amount. As with short-term loans, you should approach these loans with caution. Only apply if you are certain you can repay the loan and if it's a financial emergency.

What are the pros and cons of no credit check personal loans?

Pros
  • Your credit check won't take a hit when you apply.
  • Your credit score doesn't determine your ability to get credit.
Cons
  • These loans are expensive.
  • You're getting into debt.

How can I compare no credit check personal loans?

  • How much does the loan cost? Depending on the loan you're applying for, you may or may not have interest payments. A short-term loan of $2,000 doesn't charge interest but charges fees. A medium term loan of $5,000 charges interest and fees. A secured loan will also charge interest. Compare interest rates across a number of lenders to find the most affordable loan. Apart from interest, you should also consider fees and, where applicable, the comparison rate. The comparison rate includes interest and fees. This will give you an idea of how much the loan actually costs.
  • Can I afford the loan? Once you've calculated how much the loan will cost you, you need to consider whether you can afford it. Check if your repayments fit comfortably within your budget.
  • How much can I borrow? Each lender will have their maximum and minimum lending amounts. Does the lender offer the amount you want? How much you can borrow will also depend on your ability to repay the loan.
  • What's the loan term? The loan term is how long you have to repay the loan. Loan terms will affect your repayments. Shorter terms will mean higher monthly repayments in the short run. With a long term, you'll have smaller monthly repayments but the loan could cost you more on the whole. This is because you'll be paying interest and fees for a longer term, the cost of which can add up.
  • Am I eligible? Do you meet the lender's minimum requirements to qualify for the loan? This can include income requirements. Your application could be rejected if you don't.
  • What's the repayment schedule and is it flexible? Can the repayment schedule be tailored to suit your cash flow? Can you make free additional repayments to pay off the loan early, or will you face a penalty?

What are the risks of no credit check personal loans?

  • Disreputable lenders. Check the lender's website and make sure it's a reputable company. You should check if it has a credit licence and is registered with the Australian Securities and Investments Commission (ASIC). The company should also be easy to contact.
  • High interest rates and fees. No credit check personal loans can be expensive. You should compare loans to find a cheaper option. In the case of payday loans, all fees are regulated by ASIC and it's illegal for lenders to charge more.
  • Getting into and accumulating debt. Not only are you getting into debt, but you also run the risk of accumulating debt. If you don't pay your debt, you'll be hit with heavy fines, which may result in compounding more debt. Remember to budget for your loan repayments before you sign. If it doesn't fit comfortably within your budget, you should reconsider.
  • Borrowing too much. While a no credit check loan may be convenient, you should not borrow more than you need or when it's not an emergency. If you can wait, or borrow from another source (such as family or a personal loan), you should consider it.
  • Inflexible loan terms. You should compare loan terms to ensure you are getting one that suits your ability to repay it. Some lenders will ask you to repay the loan on the "next payday". They could deduct the funds directly from your account. Find a loan that you can tailor to your cash flow.
  • Long-term repercussions and legal issues. Once you sign a loan agreement, you are bound to its conditions. You will have to pay the loan and all the fees and payments. Typically, these are unsecured loans. This means that the lender can initiate legal proceedings against you if you do not repay the loan. They can also report the debt to a credit reporting body like Equifax and use the services of a debt collector. So while the no credit check loan won't be listed on your credit report, a default will.

How can I apply for a no credit check personal loan?

🤔 Work out how much you need to borrow and what you can afford. You can use a personal loans calculator to help you.
🔎 Start comparing lenders. You can use the comparison table on this page. Don't forget to compare interest and comparison rates and find a loan you're eligible for.
✅ Select a lender. If you're using the comparison table, you can click "Go to site" to be directed to the lender's page, or "More info" if you want to read up on the lender.
🖨️ Organise and prepare the required documentation. This can make the application process easier.
📱 Apply. Most lenders have their applications online.

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62 Responses

    Default Gravatar
    VickiSeptember 27, 2023

    Can I just get a small loan about $100 To $200

    Reply
      AvatarFinder
      SarahOctober 13, 2023Finder

      Hi Vicki,

      This guide about PayDay Loans may be helpful.

      Also, if you need help to manage your debt, the National Debt Helpline provides a free and confidential service to help you get back on track.

      Reply
    Default Gravatar
    DaleJuly 10, 2018

    Can I get a bad credit loan on Newstart allowance

    Reply
      Default Gravatar
      JoelJuly 10, 2018

      Hi Dale,

      Thanks for leaving a question on Finder.

      Yes you may, you can check our list of Centrelink loans. This page provides a list of lenders that will consider you for a loan.

      Please click the name of the lender to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      Joel

      Reply
    Default Gravatar
    KathrynOctober 17, 2017

    I am looking for a personal loan of $10000. I get disability support pension. I also get income protection payments monthly and a pension from the UK monthly. @$40000 annually and consistent .
    I would like it to be over 7 years with the flexibility of being less. I have looked at my credit report and there is nothing that jumps out. However I did suffer financial hardship @5 years ago so I’m not that happy about it being checked. There is record of my applications. I’m classed as moderate.
    Reason for loan is for major dental work. I may be able to get it covered by TAC but I’m only just starting the process of starting the claim. The other reason is that I need emergency money for a flight. My Mum is 85 and in the UK. There is no doubt that I’m going to need to drop everything and fly there.
    I share rent with my 20 year old daughter.
    I have no loans or debt.
    I have a car worth @$10000. I have superannuation $42000. My contents are insured for $70000. I have several items of art and jewellery which are valuable.
    I have usual expenses except the costs of my dental treatment.
    I admit to not being disciplined in keeping to my in depth budget. I do be,i eve I will be able to service the loan comfortably. My Mother is very supportive and is and willing to cover me if needed. She is willing to put that in writing.
    I do not want to make another application that is denied in 60 seconds and then gets added to my credit report.
    I would prefer a loan but would consider a credit card making it a priority in my budget.
    I would be grateful for advice and potential providers.

    Reply
      AvatarFinder
      JudithOctober 18, 2017Finder

      Hi Kathryn,

      Thanks for contacting Finder.

      You can check your loan options while on Centrelink payments. You should be able to check which lenders may consider you for a loan by checking the table found on the page. We also have loan options available to pensioners.

      You can click through to the page to find out more about the personal loan options available, and you can click “Go to Site” to submit your application. If you have questions regarding your eligibility it would be best to contact the brand directly.

      To improve your chances of getting approved for a loan, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant PDS/ T&Cs of the loan option before making a decision and consider whether the product or option is right for you.

      Every loan application you make will be listed on your credit file and too many applications within a short space of time will not look good to a prospective lender. If you would like to see if your bank would approve a loan for you, have a chat to them over the phone, online, or in a branch to see what they say before you apply.

      I hope this helps.

      Sincerely,
      Judith

      Reply
    Default Gravatar
    BennieSeptember 13, 2016

    I would like to know if I’m able to borrow $600

    Reply
      AvatarFinder
      ElizabethSeptember 13, 2016Finder

      Hi Bennie,

      Eligibility criteria differs between lenders but you can check the criteria for each lender by clicking on the name of the loan. Once you’ve found a loan you’re eligible for and want to apply for, click “Go to Site” to submit your application.

      Hope this helped,

      Elizabeth

      Reply
    Default Gravatar
    CarmelJuly 29, 2016

    Can I get a secured loan with my Car with bad credit, on centre link with money coming in from my son who pays half my rent and get money from my ex husband.

    Reply
      AvatarFinder
      ElizabethAugust 1, 2016Finder

      Hi Carmel,

      You can compare lenders that consider Centrelink applicants for loans. You can click through to the provider pages to find out what loan options are available.

      I hope this helps,

      Elizabeth

      Reply
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