If you don't want your credit history stopping your from being approved, there are lenders that will approve you without a credit check. These lenders may be more strict with their other requirements, such as having minimum income or employment requirements, but you still can be eligible. Find out what you need to know in this guide.
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the Financial Counsellors hotline on 1800 007 007. It is open from 9:30am to 4pm, Monday to Friday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged. It's important to weigh up all your options before applying for any form of credit.
⚠️ 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.
Sunshine Short Term Offer
- 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
Comparison of no credit check personal loans
Updated September 20th, 2019
Compare no credit check personal loans
Ferratum Cash Loans: You can apply for a no credit check personal loan from Ferratum and get up to $1,900 over a period of up to 6 months.
Sunshine Loans: Sunshine Loans offer loans up to $2,000 without conducting a credit check.
Cash Train Loans: With a loan from Cash Train you could borrow up to $800 on your first loan without any credit checks.
*Total cost may vary based on any other fees charged by the lender at the time of repayment
Why don't these lenders require a credit check?
Various lenders specialise in bad credit loans, and lenders that do not require a credit check are part of this group. The lender offsets the risk of lending to those with bad credit by charging higher rates and fees. While these loans are more expensive, it's important to keep in mind they have to set their fees by ASIC's requirements.
I have bad credit – should I get a no credit check loan?
If you have bad credit you have the option of a no credit check loan or a simple bad credit loan. There are various lenders that will look past your credit history, even though they still perform a credit check, and can approve you with defaults, missed payments or even bankruptcies.
The different types of no credit check personal loans
There are basically three types of personal loans which don't require a credit check; unsecured loans, secured loans and payday loans.
Payday loans, also referred to as short-term loans, vary in terms of loan amount and loan terms., Generally, you'll find terms of between 16 days and one year and loan amounts up to $5,000.
- Unsecured no credit check personal loan
These loans are larger than payday loans, with some lenders offering amounts up to $10,000. Because of the larger loan amount the interest rate will be higher – loans above $5,000 come with a maximum rate of 48% p.a.
- Secured no credit check personal loan
A secured loan is where the borrower puts up an asset as collateral for a loan, usually a large item. Offering security may help those with bad credit be approved, and some lenders will not require a credit check
Sarah was driving to work when her car broke down. As a shift worker, she lost two hours pay taking her car to the mechanics and was even more stressed when she realised the bill would be $200. She didn't have that kind of money and needed her car to get to and from work. Sarah also had several defaults and credit enquiries on her file from a year ago – she didn't like her chances of being approved.
Worries about losing her job and unable to borrow money from her family, she looked into a no credit check personal loan. She compared her options, found one that looked reputable and applied online later that day.
What you need to know when comparing no credit check personal loans
People with bad credit often adopt a "take what I can get" attitude to personal loans, but this can result in significant financial loss and debt. However, it helps to compare your options to find the one that best suits you:
What are the associated fees?
Responsible lenders will be upfront with you about all fees and charges before they agree to let you borrow from them. You should also check the fees you will be charged if you fail to make repayments as these can differ between lenders.
What are your loan terms?
Lenders offer varying terms for these types of loans. Choose a loan term that suits your budget and one that you will be able to manage.
Does the loan offer repayment flexibility?
Lenders can be very strict with their repayment options. For example, some lenders will tailor your repayments to suit your pay frequency, while others will let you choose the dates to repay.
Can you trust the lender?
Unfortunately, there are a lot of disreputable lenders who offer no credit check personal loans. Have a good look at a lender's website and see how upfront they are about fees, charges and loan terms. You should also check how easy the lender is to contact.
How to be approved for a personal loan with bad credit
If you have bad credit and are looking to take out a personal loan, it's important to know that there are options available to you. There are two main types of lenders who can approve loans for those with bad credit:
Lenders who don't perform a credit check. These lenders will not perform a credit check and instead ask for proof of your current employment and financials.
Lenders who look past your credit history. Your second option is a lender who checks your credit history but will still approve your loan if you have bad credit. These lenders focus on your current financial position rather than your credit history and are interested in your current ability to repay the loan.
When you apply with either of these types of lenders, they will use your current financial position and employment position as a basis for their lending criteria. If you are currently in stable employment and receiving regular pay, you are likely to be approved without a credit check.
Why would I apply for a no credit check personal loan?
A bad credit file shouldn't mean you get denied access to a form of credit. If you've missed a bill payment, or lost your job and fallen behind on a repayment you can still apply for a loan. You would consider a no credit check loan when you don't want your credit history being examined by your next lender. If you do apply for a no credit check loan then it is important to manage your repayments, as this may adversely affect your credit file.