Worried about your credit history? Here are the lenders that won't check your credit.
If you need a loan but are concerned your credit report will hold you back, you have the option of applying with a no credit check lender. These lenders base their decision on your income, employment and bank statements rather than your credit history. Find out about how these loans work and if they are right for you.
- Bad credit applicants considered
- Fast approval service
- Borrow up to $2,000
100% confidential application
Sunshine Short Term Offer
A short term loan with a fast and easy application available to those with good or bad credit. You can apply today and get approved for up to $2,000.
- Loan amount: $2,000
- Loan term: 9-12 weeks
- Turnaround time: 30 minutes (conditions apply)
- Fees: 20% of borrowed amount + 4% of borrowed amount each month
- Income requirement: 50%+ of income cannot be from Centrelink
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks
Compare no credit check payday loans
The lenders in the table below offer loans without the need for a credit check.
No credit check loans comparison
- Sunshine Short Term Loans: 20% of loan amount + 4% of loan amount each month.
- Ferratum Cash Loans: 20% of borrowed amount + 4% of borrowed amount each month.
- Cash Train Loans: 20% of principal amount (establishment fee) + 4% monthly charge.
*Total cost may vary based on any other fees charged by the lender at the time of repayment.
What does "no credit check" actually mean?
- The lender will not request your credit report from a credit bureau. At its most basic level, this is what a no credit check loan is. When you apply the lender will not request your credit report from any credit bureau to check what your borrowing history is.
- The loan details will be listed on your credit file. While the lender will not check your credit report, it will tell the credit bureau that you applied for a loan. If you are approved that credit account will also be listed on your credit report.
- Your bank statements will be checked. The lender will use the last three months of your banking history to judge whether you can afford the loan. Looking at this they can check your income, your expenses and if your account has been in the negative during this time (this indicates financial stress).
- You need to earn an income. You will need to prove you can afford the loan by providing evidence of your employment or Centrelink income.
Why don't these short term lenders check your credit history?
Instead of judging you on your financial past, these lenders focus on what you can afford now and whether you’re able to repay the loan amount. To do this they ask for proof of your employment and income. If you are not employed you may still be eligible but you will need to be able to demonstrate income from benefits such as Centrelink. You will also need to provide three months' of your bank statements.
Either way, lending money without a credit check represents a high risk. While a lender is able to approve a loan within minutes, the loan will come with higher interest rates and fees than those of traditional lenders.
Am I eligible for a no credit check payday loan?
Here are some of the criteria you’ll likely be required to meet:
- You must be at least 18 years old.
- You must be receiving a regular income.
- If you’re receiving support from Centrelink you may need to show that you earn at least 50% of your income from alternative sources.
- You will be required to provide read-only access to at least 90 days of bank statements. If you prefer providing hard copies, this will impact the turnaround time.
- Lenders will want to know whether or not you have any outstanding loans or other outgoing expenses such as credit card payments or rent.
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 loan options to see which one is right for you.
How much will the loan cost?
The fees and interest rates associated with a no credit check loan differ from lender to lender, but the cost structures are usually simple. Typically, smaller loans are repaid within a period of 16 days to 1 year, while larger loans are sometimes repaid over a maximum of 2 years. These are the costs you might expect to pay:
- Loans of up to $2,000. Here you will pay a maximum establishment fee of 20% of the principal. The ongoing monthly fee is capped at 4% of the loan amount. These loans typically come with minimum terms of 60 days.
- Loans of between $2,001 and $5,000. Medium loans are usually repaid between 16 days and 2 years. Establishment fees are limited to $400 and interest rates are limited to a maximum of 48% p.a.
- Loans of over $5,000. Lenders offering larger personal loans are not allowed to charge more than 48% annually, including establishment and other fees. It’s important to note that these limits don’t apply to traditional lenders such as banks or credit unions.
How does the application process work?
Keep in mind application processes differ between lenders, but generally when you apply you'll be asked for read-only access to bank statements from the last 90 days as well as details about your job or Centrelink benefits and how much you earn.
If approved, the loan agreement will detail the amount approved, the loan period and the associated fees and interest to be repaid. It’s important to read and understand this contract, especially the information about what happens if you aren’t able to repay the no credit check loan.
Applications are submitted online and are usually approved quickly. If you meet the criteria and supply all the required information, the lenders will usually make a same-day deposit into your account.
What are the risks of no credit check loans?
There are a few risks that are associated with payday loans, but these many of these can be avoided by doing the following:
- Make sure the lender you are applying with is reputable. Check the lender has a credit licence and is not charging you more than ASIC allows (the maximum fees are listed in the "costs" section above. You should also check the lender is easily contactable.
- Don't apply for a loan you can't afford. No matter what financial situation you're in, it’s not a good idea to apply for a loan you know you can’t repay. If you are in need of emergency financial situations you can contact the financial counselling service on 1800 007 007 for assistance.
- Avoid applying multiple times. Every loan application shows up on your credit report. While these lenders might not consider your credit history, every application you make will be listed on your report and several applications within a short period will negatively affect your overall credit rating.
- Check exactly what fees you will be charged. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. You should also check what you will be charged if you are late with a payment or default on the loan.
- Consider if you really need the loan. Once you sign the loan agreement you’re bound to its conditions until you’ve repaid the no credit check loan, including interest and associated fees. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against you if you can’t repay.
How can you compare no credit check loans?
Here are the factors to consider when comparing no credit check loans from lenders that don’t check your credit history:
- Loan amounts. Loans can be from as little as $100 and up to as much as $5,000. Lending criteria differ, so your choice should depend on which lender can best accommodate your borrowing needs.
- Loan terms. The size of the loan determines the repayment period and the associated fees. Shop around to see which lenders offer repayment terms that best suit your financial situation.
- Fees. Different loan amounts imply different fee structures, but these amounts are capped across the board for licensed lenders. However, other fees may apply for missed payments or for settling the loan before the end of the loan period.
- Applications and turnaround. Thanks to online application forms and read-only access to bank statements, lenders can evaluate your situation almost immediately and approve applications quickly. Depending on when you apply, money is usually available on the same day or within one business day.
Questions we've been asked about no credit check loans
I receive Centrelink. Can I still apply?
Are no credit check loans guaranteed?
No loan is ever guaranteed. If you see a lender promising guaranteed approval, you shouldn't apply. Legitimate lenders offering loans with no credit checks still need to check you will be able to repay the loan, so check your income, employment, bank statements and other things to make sure of this.
I need the loan for an emergency, how quickly will I get the funds?
This differs between lenders. Usually you will receive your approved funds the following business day if you confirm your loan before around 4pm on a business day. Again, this differs between lenders so it is best to check.
Besides bank statements and proof of income, what other information do I need to provide?
You should also have the following handy when applying:
- Driver’s licence or another form of positive ID
- Medicare number
- Utility bills
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.
Will the lender contact my employer?
In some cases, yes. The lender might need to verify that you are indeed employed and receiving an income, especially since there’s no credit check for this loan type. Lenders may also specify on their website that they don’t tell employers that you’re applying for a loan.
Can I repay my loan early?
Most payday lenders will let you repay your loan early and will not charge you any additional fees.
Are no credit check loans actually legal?
Yes. If a lender is certain that you won't face financial hardship or struggle to make repayments, there will be no credit checks performed on your account.