If you are stressed about your credit history and worried that you might not be approved for a loan, there are lenders now that offer no credit check loans. Instead of analysing your credit history, these lenders look at your bank statement, income, and employment before they decide if they can provide you access to funds.
Their focus is whether you can handle the repayments of the loan amount, based on what you can afford.
Read more about no credit check loans here.
“No credit check”? What does it really mean?
Basically, lenders will not ask your credit report from any credit bureau to look at your borrowing history. They will rather review your income and expenses through your latest 3-months bank statement to see if your account is in financial stress or not.
You also have to provide evidence of your employment to prove that you can afford the loan. If the income is from Centrelink benefits or pension and other sources, lenders might still consider the application for no credit check loans and eventually correlates the amount of what can be borrowed. If you are eligible and interested in getting a no credit check loan visit Cigno Loans to apply.
Although the lenders won’t check your credit report, your loan details will be listed on your credit file once your loan application commences.
Comparing No Credit Check Loans
Keep in mind the following pointers when comparing no credit check loans from lenders:
- Loan amounts — Loan amount can be from a minimum amount of $100 up to the maximum amount of $1,000. The amount you can borrow will be determined by your financial situation. You will also need to consider your spending habits and any existing financial commitments.
- Loan terms — Carefully go through the loan agreement to identify the loan’s characteristics. It is important to determine the loan terms because it will affect your monthly payment and your total interest costs. Look for repayment terms that best suit your financial situation.
- Fees — The loan amount and features determine the different fees. You may also be asked to pay fees for settling the loan ahead of the loan period or for missed payments. An example of these fees is the loan origination fee. The lender may charge a loan origination fee for preparing and evaluating your loan. It may also cover the lender’s attorney fees, document preparation, and notary fees. You may want to check this to have an idea.
- Processing time — Lenders know the urgent need of borrowers to access funds that’s why they now process loan application faster. Online application and read-only access to bank statements are now common so that lenders can evaluate the borrowers’ situation immediately, hence quick approval. It will be better if the lender you will choose credits funds directly to the borrower’s account within one business day.
Reminders on getting No Credit Check Loans
Make sure the lender you will deal with has a credit license and follows the Australian Securities and Investments Commission (ASIC) rules and regulations. Lenders which are considerate will make sure that borrowers won’t struggle to make repayments as this will reflect back to them. You should also choose a lender which can be contacted any time and respond swiftly and responsibly to your inquiries.
You might also be wondering about applying for multiple loans. It is usually not a smart idea to apply for more than one loan at a time in a short period. Every application will appear on your credit report and can be seen by the financial institutions you do business with. Lenders may see this as a bad negotiation practice on your part. Learn more about payday loans.
Check these criteria for eligibility:
- The borrower must be at least 18 years old.
- The borrower must have a regular income.
- If the borrower receives benefits from Centrelink, half of the income must at least be from other sources.
- The borrower can provide read-only access to the 3-months bank statement for faster turnaround time. This will show if the borrower has any outstanding loans or expenses such as credit card payments.
Lend responsibly and only get a no credit check loan when you really need it. Be mindful of the loan amount, repayment term, and additional fees that come with this type of loan. Always consider the commitment you’re making when applying for a small loan. For more guidance, you can click here.
Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.