Given the state of the global economy, many people are having financial hardships and can make use of cash loans to get them back on their feet. However, if you have a bad credit score, you might think it’s the end of the line for you!
This is far from the truth, as you can opt for loans in Australia that require no credit check. The icing on top is that such emergency loans don’t necessarily bind you into expensive, long contracts if you know what to look for.
But are there no credit check loans with guaranteed approval in Australia? We’ll answer your question and walk you through our step-by-step guide on how to apply for no credit check personal loans.
What this article covers:
- Can I Get Guaranteed Approval for Loans With No Credit Check?
- How Do No Credit Check Loans Work?
- Do I Qualify for a No Credit Check Loan?
- Types of No Credit Check Loans In Australia
- How to Apply for a No Credit Check Loan
- How to Improve My Credit Score
Can I Get Guaranteed Approval for Loans With No Credit Check?
The Australian government doesn’t allow giving out guaranteed approval loans because of the risk they hold. It dictates that a lender has to ask a borrower a few questions and run personal checks before giving them money.
However, your chances of getting approval without a credit check aren’t too bad. Not all lenders run an extensive background credit check before approving your application. In such cases, there are other factors that lenders go over to ensure your readiness to pay back your loan.
For instance, employment status, owned assets, and passive cash flow channels are considered even if your credit score is bad. This gives all Australians equal chances to regain financial stability and defies the model of a single metric that dictates one’s future.
How Do No Credit Check Loans Work?
Before exploring the different types of no credit check loans and how you can apply for them, let’s take a step back to lay down some fundamentals. For the most part, in order to get a loan in Australia, your lender needs to review your credit history to ensure you can afford the loan you’re applying for.
The credit check also serves as a means to confirm your identity, the activity status of your accounts, and how much collective debt you owe at a given time. That’s not all, as the process involves tracking your reliability in paying your debts and whether you’re in the habit of accumulating missed payments.
There’s nothing inherently evil about credit checks; however, some people who won’t pass such a process might still need a loan. So, here comes the role of no credit check loans!
Such cash loans come with a small cap, ranging from $300 to $1500, and run over short periods of time. You can think of them as some sort of payday loan that you can easily pay off once your monthly salary hits your bank account.
For that, your lender won’t bother with a detailed credit check that puts your credit score front and centre. Instead, they might just confirm your identity and employment status and call it a day.
There are many factors that affect your eligibility for no credit check loans, but the most important ones are being an Australian citizen, holding an active Australian bank account, and having a stable source of income for the past three months.
So, even if you’re unemployed, you can still be eligible for no credit check loans, provided that you can demonstrate a steady cash flow. This can take the form of pension, return on investment, sick leave benefits, and so forth. As long as your income covers your loan, you should be in the clears!
Do I Qualify for a No Credit Check Loan?
We’ve already touched on some of the requirements that no credit check lenders set. So, let’s dissect the eligibility criteria for no credit check loans from direct lenders and help you decide whether you qualify for one.
Such requirements are subject to change depending on your lender’s internal policies and regulations. Some might be more forgiving than others, so you’ll have to filter through your potential lenders to see with whom you have your biggest shot.
Nevertheless, there are still some basics that most lenders include in their no credit check loan applications. You’ll find a list with the bare minimum requirements to be eligible for a loan right below:
- You should be at least 18 or older to apply for a no credit check loan.
- Being an Australian citizen or providing proof of valid Australian residence.
- Having a steady source of income for the past three months; however, there’s a catch! 50% of your cash income should be from sources other than government benefit funds.
- Provide accurate contact information, including your phone number, email address, and detailed home address.
- Your current financial obligations, like your credit card debts, ongoing instalments, and other unpaid loans.
- Finally, an active Australian bank account is a must!
With all the supporting documents available, you should now be ready to tackle your loan application with confidence!
Types of No Credit Check Loans In Australia
Same-day loans that require no credit check take different forms depending on your particular situation. It’s worth noting that different loan types usually have different binding contracts and interest rates depending on how riskier they are from the lender’s perspective.
Buckle up as we walk you through the different loan types that you can apply for in Australia. The common thing among the following list is that they all don’t require a credit score check.
Unemployment Loans
Even with the support of a steady monthly salary, people can still run into financial hardships. So, it’s totally understandable how much of a financial toll unemployment presents.
Luckily, you can still get a small loan, anywhere between $50 to $5000, to help you bounce back to the job market and secure an even better job. In order to secure such loans, you’re expected to present alternate sources of income.
If you have rental properties or assets on the stock market, this can make you a more favourable candidate. That’s not all, as a pending job offer might be enough to give lenders some confidence in your future readiness to pay off what you own. Also, a freelance job remains a reliable source of income and can present your case in a better light!
Without the security blanket of a stable job, lenders deem such loans to be much riskier. For that reason, expect higher interest rates running you anywhere from a 4% monthly fee throughout the loan repayment period or a 20% establishment fee paid once on the overall loan bulk.
Bad Credit Loans
Next up are bad credit loans! Such loans overlook your past credit score dips and instead focus on your current financial situation. Lenders have to find bright spots in your financial profile that guarantees your ability to pay off your debts.
So, who are bad credit loans for? The answer lies in the way they’re coined. Such loans are for people with a history of overdue loan payments and those who end up in long-term financial obligations more often than not.
Payday Loans
Similar to unemployment loans, payday loans come with one of the highest interest rates in Australia. So, before taking on such a loan, make sure you’ve exhausted all your other options for financial support.
In terms of how payday loans work, the process is fairly simple. The loan repayment dates are adjusted to align with your payday, giving you better chances to pay off your debt before getting into an unaccounted-for shopping spree!
Also, such loans have a cap of $2000 and are meant to be repaid over a short period of time, ranging from 16 days up to a year.
Short-Term Loans
Looking for same-day loans to pay off some unexpected expenses, like holiday presents expenses, thrown your way? Short-term loans are your best bet! Again, they’re short-term loans that come with a small cap, like $1000, for instance. However, the fact that you can secure a loan on the same day of applying makes it the ultimate emergency safety net.
There’s some flexibility in how you choose to adjust your repayment schedule. You can repay your debts on a weekly, every two weeks, or monthly basis, depending on your cash availability. No matter which model you go for, you must repay your loan in total within one year.
Guarantor Loans
By now, we’ve only featured personal loans that put the burden of repaying the debt on one person. What about giving you a loan with two people paying it off? This is exactly the premise of guarantor loans which you can apply for with a family member or a trustworthy friend.
This could be your only option if you can’t secure a loan on your own. By having another person apply for the loan with you, your lender can rest assured that repayments will go on smoothly and on time.
They see it as an extra layer of security, with the other person acting as a safety net and depositing the repayments on your behalf if you can’t fulfill your financial obligations.
It’s worth noting that in such cases, the guarantor needs to show up with a good credit score to back you up. It only makes sense as you can’t have the signature of two people with bad credit on the loan and expect it to go through!
Emergency Cash Loans
Many of the loan types we’ve featured above can function as emergency loans. Nevertheless, Australia offers a separate category of loans that offer support in emergency situations like medical issues, repairs following a car accident, and other similar unexpected emergencies.
What stands out about emergency cash loans is that the application process is straightforward and has higher odds of approval. Also, you can get emergency funds of up to $10,000, which is not always possible with other types of short-term loans.
How to Apply for a No Credit Check Loan
What sets a short-term no credit check loan from traditional lending is that the former is quicker to be approved. No credit check loans don’t require a time-consuming background investigation, so you can get your application approved within a day and without any further delays.
Let’s walk you through what you need to do to apply for a no credit check loan. Follow our step-by-step guide to secure your short-term loan and regain your financial stability!
Step One: Get Your Supporting Documents Ready
To cut down your loan processing time, make sure to attach all your required documents upon filling out the application to avoid unnecessary back and forth between you and your lender. Once your documents are verified, you can proceed with your application and receive your no credit check loan with no hiccups.
To prepare for the application process, scan the following documents so you can digitally attach them to your loan form.
- A valid copy of your Australian ID
- Your bank account information, including your account number, bank, and linked phone number
- A recent bank statement that covers at least the past three months
- Documents that support your Australian residence with an address proof
That’s all you’ll need to apply for a no credit check loan. Make sure you check whether such documents need to be arranged in a particular order so your application isn’t filtered out automatically. Such details can be overlooked by the average loan applicant and find themselves subject to unnecessary extensive processing periods.
Step Two: Fill In the Online Application Accurately
Websites like OrangeLoans match you with a suitable lender who offers terms that align with your financial situation. All you need to do is fill in an online application that’ll only take you a couple of minutes.
In the case of OrangeLoans, you get a built-in loan calculator right into the website that lets you specify the loan amount you’re looking for and what repayment period should work best for you.
Once you hit apply, the smart algorithm works in the background to set you up with a suitable lender and voila, you’re already on the right track to receive your no credit check loan! Check your potential lender’s track record and if everything seems perfect for you, fill in the application accurately and wait for the verification of your information.
Step Three: Be Patient While Your Application Is Processing
Since the entire process takes place in the cloud, you’ll get an update on the status of your application in just a few minutes. If your lender approves your application, they might reach back to you requesting additional documents.
Next up, your lender will send you a contract with the terms of service and binding conditions. Take your time to read through the whole thing and make sure you understand all the included terms before you sign anything.
The internet has made us accustomed to accepting long terms of service agreements without giving them a second thought. However, we’re talking about your finances here, so you can’t take any chances. Reach back to your lender with any questions or concerns you might have.
It’s worth noting that in some cases, the lender might alter some terms and conditions you might find problematic. This doesn’t often happen, especially since you’re getting a no credit check loan.
Even if you can’t alter the agreement terms, at least you know what you’re getting yourself into instead of being surprised by conditions that you can’t abide by down the line.
Step Four: See Your Bank Balance Go Up
Once you sign the contract, you should receive your loan within 24 hours. Depending on your bank account, processing time until your balance is updated can vary. This might go anywhere from about an hour to a full 24 hours. Same-day loans come in handy to help Australians get over unexpected emergencies the moment they show up!
How to Improve My Credit Score
Receiving your emergency loan shouldn’t be your ultimatum! You need to adjust the way you manage your finances to avoid running into the same hardships over and over again.
You need to make conscious efforts to improve your credit score to open up even more loan options in the future. Here are some simple steps you need to follow to see your credit score flourish!
Review Your Credit Reports
In some cases, an error might be responsible for your suboptimal credit score. You might have paid all your debts, but they’re not registered in the credit report and appear as pending payments. If this is the case, reach out to the Australian credit rating authority to better understand the error and work towards fixing it.
Keep Your Debts Under Control
Unpaid utility bills add up towards your overall debt, so you need to have a system in place to ensure you don’t overlook your different recurring payments. Also, you need to check your credit card debts and ensure you don’t have long overdue installments.
It’s also worth noting that applying for multiple long-term loans at the same time brings your credit score down. Numerous credit checks within a small time frame have a negative impact on your credit score regardless of the status of the loans. In other words, your loan applications might get accepted at the expense of lowering your credit score!
Control Your Credit Utilization Ratio
It’s always recommended to be mindful of your spending. No matter how much credit you’re entitled to, you don’t want to approach such a limit with no realistic means of repaying your debt.
Better safe than sorry, so it won’t hurt to keep your credit utilization ratio under the 40% mark and not make any further purchases until part of your debt is already repaid.
Explore Becoming an Authorized Credit Card User
If a family member has a credit card with an excellent track record, high available credit limit, and timely payments, explore becoming an authorized credit card user to improve your credit score.
This works by adding you to their cards, giving you the ability to make purchases as long as they’re covered by the primary credit card.
For such a method of improving your credit score to work out, you need to have goodwill with your family members and some sort of agreement that guarantees you don’t go crazy with their cards and put them in debt!
Bottom Line
While there aren’t any guaranteed approval loans in Australia, it’s reassuring to know that you can apply for no credit check loans to bring you back on your feet. Such loans come with a not-so-high cap and require repayment within a short time frame.
We can’t overlook the high-interest rates of such loans, so you can’t depend on them unless you’ve exhausted all your other options for financial support. The interest rates can quickly add up and put you into even more debt if you’re not mindful of how you utilize your emergency loans.
With that said, no credit check loans work as a short-term rescue fund, but you still need to work on your credit score so you have more lending options available to you in the future.
We hope our guide has helped you see the bigger picture and you’re now empowered to take more control over your own finances and take proactive steps to improve your credit score!
Was the guide helpful? Check out these extra resources to delve deeper:
- Guaranteed Approval Loans for Bad Credit Applications Centrelink Australia
- Guaranteed Debt Consolidation Loans for Bad Credit Australia Centrelink
- I Need a Loan Urgently but Have Bad Credit
- Bad Credit Personal Loans: What Are Your Options?
- Bad Credit Instant Approval Loans
- A Guide to $1500 Loans for Bad Credit
- Best Loans for Bad Credit
- Is It Possible to Get a Bad Credit Holiday Loan?
- Bad Credit Car Repair Loans: A Financing Option for Getting Your Car Repairs Done
- Are There Loans for Bad Credit Debt Consolidation in Australia?
- Micro Loans for Centrelink Customers
- Centrelink Financial Hardship
- Loans for 500 Bad Credit: Is It Possible to Get Approved?
- I Need a $25,000 Loan with Bad Credit – Do I Qualify and How to Apply?
- Second Chance Loans Bad Credit