Unlike most credit issuers, there are some lenders that don't do credit checks when assessing an application for a personal loan. This could be an alternative for someone with a low credit score or poor credit history who wants to apply for a loan. Applicants may need to meet other eligibility criteria including minimum income or employment requirements, so it's important to check these to see if you meet the requirements before applying. As these are a higher risk for the lender, no credit check loans may charge higher fees than other options. Use this guide to compare no credit check personal loans, understand the eligibility criteria as well as the fees and features that you can expect.
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 November 17th, 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 12 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 the lenders still have to set their fees by ASIC's requirements.
The different types of no credit check personal loans
There are 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, the loan terms will vary between 6 days and one year and loan amounts up to $5,000.
Unsecured personal loan
These loans are larger than payday loans, with some lenders offering amounts up to $10,000. As the loan amount is larger, the interest rate will be higher. Loans above $5,000 come with a maximum rate of 48% p.a.
Secured personal loan
A secured loan requires the borrower to use 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
What you need to know when comparing no credit check personal loans
Before you apply for a loan, ask the following questions and compare your options:
- What are the associated fees? Responsible lenders will be upfront with you about all fees and charges. This could include establishment fees and monthly fees. The lender will also charge fees if you fail to make repayments or default on the loan.
- What are your loan terms? As discussed above, loan terms can vary between weeks to months or years. People should make sure that the loan term aligns with what they can afford and consider the fees that will apply (for example, customers are usually charged more fees for longer loan terms) before applying.
- Does the loan offer repayment flexibility? Lenders can have strict repayment options. For example, some lenders will tailor the repayments to suit the borrower's pay frequency (for example fortnightly or monthly), while others will let you choose the dates to repay. Some lenders also allow customers to repay their loans early without paying any fees.
- Is the lender trustworthy? Unfortunately, there are a lot of disreputable lenders who offer no credit check personal loans. It's important to check the lender's website and see how upfront they are about fees, charges and loan terms. The lender should also be easy to contact.
How to apply
The process will vary between lenders but you can usually apply online. Before submitting an application, consider the eligibility criteria as well as the fees and features of the loan. The specific criteria will depend on the loan but usually includes:
- Age. Must be at least 18 years old.
- Income. Applicants must prove that they receive a regular income. If this includes support from Centrelink, it shouldn't make up more than 50% of the total income.
- Banking statements. To assess income and expenses, lenders usually require applicants to provide recent bank statements.
- Liabilities. Applicants must list details of other liabilities including outstanding loans or credit cards.
Although these lenders won't check credit history while assessing the application, they will consider other financial factors to ensure that applicants can repay the loan. As these loans generally charge higher rates and fees, it's important to consider the risks and only apply for a loan if you're sure that you can afford to repay it.