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Common Barriers To Loans With No Credit Check

When you’re looking for a loan with bad credit, there are certain things you need to be aware of so that you don’t apply to the wrong places, waste your time, and damage your credit rating even further. In this post, we’re taking a look at some of the most common factors that prevent borrowers actually achieving a loan with no credit check. Read through these so that you have an understanding of the right loan products to chase and give yourself the best chance of being approved first time.

We’ll start with:

Unsteady income

At Cigno Loans, we specialise in short-term payday loans. These are loans with no credit check because they are designed to be paid to your account as quickly as possible. Credit checks take time, so when you need to act fast, you need a loan that doesn’t include this time sapping process.

Because we don’t run credit checks, we need to be sure that you can afford the loan we’re giving you. To do this, we check your current income. If your current income isn’t high or consistent enough, we’ll be forced to offer you a lower amount or refuse your application entirely. This dynamic will work exactly the same way with any payday loan provider.

You need to make sure you have recent bank statements that clearly show you’re earning a steady salary from work. Have this to hand when you apply along with your ID and you’ll have a great chance at being approved without delay.

Wanting the loan for the wrong reasons

Payday loans are for emergencies. They should never be used to buy things you don’t need or to have a good time. If you put down in your application that you want the money to get yourself a nice new wardrobe for the summer, your application will be delayed or refused.

When you find yourself constantly struggling to make ends meet, saving on variable costs like bills and weekly shopping is one of the best ways to improve your situation. When a cost comes up that can’t be ignored and you don’t have the cash to cover it, that’s when a payday loan can be very handy.

Need the money to buy a new TV or car? Then forget it. Tell us you need the funds to repair your boiler, buy food for the month or any other necessity and we’ll do our best to help. The fastest way to be refused a payday loan is to admit that you want the money for investments or gambling. You might have heard others brag about the money they’ve made using payday loans for seed money, but it’s just not what these loans are made for.   

If you need to make extra money on the side, you’re best bet is to find a part time job, sell things around the house that you no longer use or consider cutting back on luxury services that you no longer need.

Not having ID that’s up to date

When’s the last time you checked whether your passport or driving licence is expired. If it’s been a while, you should double check before you start your loan search. All payday loan providers will ask for official government identification that’s in date and clearly shows your current address. If yours is expired, you’ll need to get it renewed before you can apply.

At Cigno, we aim to process loans within 24 hours of your application. Many of our customers need instant cash paid out so that they can settle urgent costs as soon as possible. If there’s any reason your application cannot be completed, we’ll get back to you as soon as we can to let you know what’s holding us back.

There they are! These are the most common issues that people tend to come across when trying to apply for a loan with no credit check. Bad credit is certainly a limitation, but there are always ways to get your score back up to good levels. The absolute best way to recover your score is to make sure you pay all your credit debts as quickly as possible. We help you do this with handy notifications to your phone to remind you of your upcoming payment dates.

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Read more about no credit check loans here, or in our previous blog post: Can I Get Fast Cash Loans With Bad Credit?

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.

NOTIFICATION OF MISCONDUCT BY CIGNO AUSTRALIA

Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat