There are some payday loan lenders that don't conduct credit checks when assessing an application, which can be suitable for people with negative listings on their credit history.
However, applicants must still meet eligibility requirements and lenders will base their decision based on income, employment and bank statements. Lending to people without knowing their credit history presents a higher risk, so these products may charge higher fees than other loans.
Discover how these loans work and the eligibility requirements as well as the repayments and fees that apply.
Are you struggling financially?
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
⚠️ Warning about Borrowing
Do 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 does a "no credit check" loan involve?
- The lender will not request a credit report from a credit bureau. When someone applies for a loan, the lender will not request a credit report from any credit bureau to review borrowing history.
- The loan details will be listed on credit reports. While the lender will not check your credit report, it will tell the credit bureau that you applied for a loan. This means that the credit enquiry and the loan (if you're approved) will be listed on your credit report.
- Bank statements will be checked. The lender will use the last three months of banking history to judge whether the applicant can afford the loan. It will consider income, expenses and if the account has been overdrawn to understand the applicant's ability to repay and see if they're under financial stress.
- Applicants must earn an income. Applicants are still required to meet eligibility requirements and demonstrate that they can repay the loan by providing evidence of income including proof of employment, payslips and Centrelink income.
People with a low credit score can also consider bad credit loan options.
The eligibility requirements for a no credit check payday loan
The specific requirements will vary between lenders and products, but the criteria usually include:
- Age. You must be at least 18 years old.
- Income. Applicants must prove that they receive a regular income. If this includes support from Centrelink, they'll need to show that at least 50% of their income is from alternative sources.
- Banking statements. To assess income and expenses, lenders usually require read-only access to at least 90 days of bank statements.
- Liabilities. Applicants must provide details of any other liabilities including outstanding loans or credit card repayments.
As long as the eligibility requirements are met, people can apply for these loans online, though approval is not guaranteed.. If approved, the lender may make the deposit within a matter of days.
Find alternatives to payday loans
What are the risks of no credit check loans?
- Unreputable lenders. Check the lender has a credit licence and is not charging you more than ASIC allows. The lender should be easily contactable.
- Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
- Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
- Check rates and fees. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here - lenders can charge interest rates on top of everything else.
- Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.
How much will the loan cost?
The fees and interest rates associated with a no credit check loan differ from lender to lender. Typically, smaller loans must be repaid within a period of 16 days to 1 year, while larger loans can offer repayment terms of up to 2 years. The fees will vary depending on the size of the loan, which you can compare below:
- Loans of up to $2,000. A maximum establishment fee of 20% of the principal applies to these loans. 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 can charge up to 48% annually, including establishment and other fees.
Questions we've been asked about no credit check loans
I receive Centrelink. Can I still apply?
Depending on the lender, a pension or Centrelink can be considered a legitimate income. However, applicants won't usually be approved if the government benefit accounts for more than 50% of their income.
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 assess if customers can afford to repay the loan, which is why they consider income, employment, bank statements and other factors before approving a loan.
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 photo ID
- Medicare number
- Utility bills
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 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.
Image: Shutterstock
I have outstanding small loan with cigno and sunshine however I am now working and if I can get a loan I will use some to pay these as well as what I need it for.
Hello Wade,
Thank you for your comment.
As long as you meet the eligibility requirements and has the capacity to repay a loan, you may be eligible to get a loan for refinancing. Please contact the lender and see your eligibility before submitting an application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
Hi I need urgent cash!! I’m behind one payment in child care and I’m so stressed pls I can afford repayments.
Hi Paula,
Thanks for reaching out.
While we can’t tell if you’ll be approved for a loan or not, please review our guide and speak to a lender listed on this page (in green check) to discuss your loan options and eligibility.
Hope this helps.
Cheers,
May
I really need a loan.
Hello Rebecca,
Thank you for sending your inquiry today. :)
You may check our compiled list of different types of loans on this page. Please consider your current financial situation against the eligibility requirements of each lender, to make sure you meet them and get approved.
Once you are redirected to a comparison table where you see a list of lenders, type in your loan amount and the term you wish to repay the said loan, and click “Calculate”, so that the figures will be updated and you’ll have a better estimate of how much you need to stack away each month.
Hope this helps.
Cheers,
Jonathan
it takes for how long to get a loan here
Hello Nokuthula,
Thanks for your questions.
Please be advised that you have come thru finder.com.au and we are a financial comparison and general information provider. We are not a lender. IN regards to your question, most lenders will be able to send your loan amount within one business day and some even within one hour if you are approved.
Hope this helps.
Cheers!
Chester
I need 260 by tonight can you please help me. I will repay next week?. Do yous call up our workers for verification because I need it now, because I don’t know my employers number.
Hi Lala,
Thank you for your inquiry. Just to confirm, though that you’ve come through to finder.com.au we are an Australian financial comparison website and general information service and do not offer the loans ourselves.
There are a few lenders listed above that offer no credit check payday loans which you may like to contact and discuss your loan options. Please read through our guide on 5 steps to getting a no credit check payday loan. To submit your online application, please click on the ‘Go to site’ button to head over to the lender’s website.
I hope this has helped.
Cheers,
May
Pls I live in I need a loan of $2000 for my fees and project, but all loans seems to be US citizens. Pls what can u help me.
Hi Cole,
The loans on the page above are available to Australian citizens.
I hope this helps,
Elizabeth
i need $200 today can pay it back on friday pay day
Hi Lawrence,
You can choose from the loan options above if you’re looking for a lender that won’t conduct a credit check. Remember to check the eligibility criteria and once you’ve found one you want to apply for just click “Go to Site” to submit you application.
I hope this has helped.
Thanks,
Elizabeth
Hi
You need to update this page as Sunshine Loans DO perform a credit check now as I applied with them and that was the reason why I had my application declined i.e. based on my credit file I had been dealing with too many lenders.
Hi Sam,
Thanks for your comment.
It’s an ASIC requirement that part of the application process, all short-term lenders, including Sunshine Loans, need to determine if you are currently repaying any Small Amount Credit Contracts (loans of less than $2,000 repaid in terms between 16 days and 1 year). If you’re currently repaying a payday loan, are in default of a payday lender or have had two payday loans in the previous 90 days they may either reject your application or need to take further steps to determine that you can manage your repayments on the loan you’re applying for.
You may have been asked in your application about your dealings with payday lenders or the payday loan repayments could have been picked up in an analysis of your bank statements. So, it’s not a result of a credit check. More information about what I explained above can be found here and also on ASIC’s website.
I hope this has helped.
Thanks,
Elizabeth
I need loan emergency
Hi Lakshmi,
If you’d like to apply with any of the lenders on the page above you can click “Go to Site” to submit your application. Remember to check the eligibility criteria before you apply.
I hope this has helped.
Thanks,
Elizabeth
Hay I.am on new start and I need a loan asap today I need money tomorrow latest plz help
Hi Nathan,
Thanks for getting in touch. You can compare lenders who offer loans to Centrelink recipients here.
Ensure you compare your options and meet the criteria before applying.
Cheers
Matt