Is A No Credit Check Loan The Right Solution For You?

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.

What Are No Credit Check Loans?

No credit check loans, as their name suggests, is money you can borrow from a loan provider without the need to have your credit checked. Loan amounts vary from provider to provider but on average can range from $50.00 to over $1000.00.

Approval is based mostly on verifiable income, the application process is non-invasive and you can have the money you need fast.

If any of the following apply to you, you may want to consider getting a loan that does not require a credit check:

  • You have a poor credit history
  • You have no established credit history
  • You need quick access to fund an emergency expense (car repairs, home repairs, health expenses, etc.)
  • You want to apply for a loan that specialises in helping applicants with below excellent credit

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.