Think your credit history will stop you getting a loan? Find out about lenders that won't check your credit history.
Negative marks on your credit file can seriously impact your ability to access credit. If something unexpected comes up and you need quick access to cash, you may feel you have limited options for loans if you have bad credit. If you're in this position, you can consider a no credit check loan. Lenders who offer these loans have more flexible lending criteria than with other loans, making it possible for people with bad credit to apply.
Take a look at our guide below to make sure you decide on a loan that's right for you.
No credit check credit loans to compare
- Centrelink borrowers considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
Sunshine Short Term Offer
This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000
- Loan amount: $2,000
- Loan term: 9 weeks
- Turnaround time: 30 Minutes - conditions apply
- Fees: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks - Must be employed
- Borrow up to $4,600
- Loan term up to 2 years.
- Instant online decision
100% confidential application
Swoosh Finance offer Fast, reliable, and hassle-free secured loans up to $4,600 for when you are in need of money
- Loan amount: $4,600
- Loan term: 12-24 months
- Turnaround time: Next Business Day
- Fees: $400 + 48% APR of borrowed amount
Warning about Borrowing
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.
How can lenders approve me without a credit check?
Lenders who offer quick loans with no credit checks base their decision on your current financial situation and your ability to pay back the loan. To do this, they look at your income, if you are currently repaying any loans, how frequently you get paid, and if/how you are employed. If you receive Centrelink, they will look at how much and what type of payment you receive.
Your repayments are likely to be structured around when you get paid, and lenders often direct debit your repayments directly from your bank account. Lenders need to operate within ASIC's guidelines so cannot charge more than the allowable fee cap (outlined below) and cannot approve you for a loan they don't think you will be able to repay.
Does everyone who has bad credit need a "no credit check" loan?
No. There is a range of lenders that will consider you for a loan if you have bad credit, and they will still check your credit history. Just as the case with no credit check loans, bad credit loans are approved using the information you provide in the application, such as how much you earn and whether or not you are employed. Bad credit lenders may also use your credit history to help make their decision, but bad credit doesn't mean you won't be approved.
If you have bad credit you may want to compare your no credit check and bad credit options to see which one is right for you.
How much does a no credit check loan cost?
The cost of your loan will depend on how much you apply for. The table below shows the maximum fees and interest rate you can be charged, according to ASIC.
|Loan amount||Fees||Interest rate|
|Under $2,000||Establishment fee: 20% of loan principalMonthly fee: 4% of loan principal||N/A (you are only charged fees, no interest)|
|$2,001 - $5,000||Establishment fee: $400||48% p.a. excluding the establishment fee|
|Over $5,000||N/A||48% p.a. including all fees and charges|
Four things to ask when comparing your quick loan options
It's important to find a reputable lender when looking to apply for a no credit check loan. Unfortunately, there are some 'predatory' lenders that approve loans that people are unable to afford. To avoid disreputable lenders, compare your options and keep the following in mind:
- What fees will I be charged? All payday lenders are restricted as to how much they can charge in fees. For loans of less than $2,000 repaid in terms of 16 days and one year, they can't charge more than a 20% establishment fee and a 4% monthly fee.
- Is the company transparent? A lot of these lenders operate online, so you should take a good look at their website before your apply. See how readily available they make their loan information, including fees and rates, and see if they are easy to contact.
- How quickly can I receive the loan? Lenders offer different turnaround times, so if you need your loan quickly you will need to check this. The quickest turnaround time is usually an hour or two following approval, with the latest being the next business day.
- Am I eligible for the loan? This is one of the most important questions to ask before submitting your application. While the lender won't conduct a credit check, you will still need to meet other criteria relating to income, employment, residency and other factors.
What to consider with no credit check loans
- These loans often have a quick turnaround time, making them an option if you need to access money quickly
- Set fees allow you to budget for your repayments
- Lenders offer an online application process, which is a convenient option for borrowers.
- These loans come with a high cost when compared to standard loans
- Some lenders may approve loans that you can't afford, so you need to be careful when selecting a lender.
Is there anything you need to avoid?
As with all loans, you should be considering the fees and rates that will be charged by the lender before you settle the loan. You should also look at repayment options available for the loan and whether these will meet your budget and personal requirements. Before you apply you should calculate the fees and charges as well as the rates of the loan to see if you will be able to afford the repayments.
Case Study: Sarah needs to pay rent
Sarah is a casual night shift fill worker at her local supermarket but hasn't been offered many shifts as of late. She is behind on her rent but has a full roster of shifts for the next two weeks. Her phone bill and electricity are also in arrears, so her credit file is not the best. His immediate family can't spare her any cash, so she decides to research her options for a quick loan that offers no credit check.
She calculates how much she will need to repay and sets out her budget to repay the loan in full on her next payday. After applying and being approved, Sarah receives the money the next day and is able to make her rent payment. She also sets up a payment plan with her utility providers.
When her employer next pays her, the loan repayments are automatically deducted from her account.
How you can apply
No credit check lenders often have online application processes and some offer instant approval. You will need to provide personal information such as your name and contact number, as well as details of your current finances including income and assets. Generally, you will need to meet the following criteria:
- Be over the age of 18
- Receive a regular income
- Be an Australian citizen or permanent resident
You will need the following:
- Personal information. Your name, date of birth, contact details and driver's license number.
- Employment details. Where you are employed, the nature of your employment and your employer's contact details.
- Centrelink information. If you receive Centrelink payments you will need these details.
- Internet banking. You will need your Internet banking information for the lenders to securely access the last 90 days' of your bank statements.
- Finances. You may need to outline details of your income and expenses. This will be verified using the bank statements the lenders can view.
Your questions about no credit check loans answered
How much can I apply for?
Different lenders have different loan amounts that you're able to apply for, so you can check this before you submit your application. The loan amount you are approved for will depend on your individual financial circumstances and what kind of repayments you can afford.
Am I eligible for a loan?
These loans don't require a credit check, so those with bad credit can apply. Eligibility criteria differ between lenders, but you will generally need to be over the age of 18 and earning a regular source of income.
What will my repayments be?
If you apply for a loan of less than $2,000 and repay it in less than a year, you will repay what you borrow plus 20% of your loan as an establishment fee and 4% of your loan as a monthly fee. If you borrow more than this, you'll need to check the repayment terms with the lender you're applying with.
I'm on Centrelink, can I still apply?
Some lenders will consider your Centrelink payments as a form of income and will let you apply for a loan. There are some restrictions on this, for instance, some lenders will not allow those receiving Newstart apply. Check the lender's criteria before applying.
How quickly will I get my loan?
This also depends on which lender you apply with. After you're approved for a loan, some lenders can transfer your loan amount to you in a matter of hours, meaning you could have your loan on the same day you apply. If you bank with a smaller credit union or apply outside of business hours your loan may take longer to get to you.
Can I repay my loan early?
Most payday lenders will let you repay your loan early and will not charge you any additional fees.
What if I can't meet my repayments?
If you think you'll have trouble making your repayments, get in contact with your lender before your repayment is due. They may be able to offer you some sort of payment plan or hardship agreement. If you don't, you will likely be charged late payment fees or default fees.
Are no credit check loans actually legal?
Yes. If a lender is certain that you wont face financial hardship or struggle to make repayments, there will be no credit checks performed on your account.