With banks tightening their lending practises, it has become near impossible for people with bad credit to secure a loan from. If your past mistakes have been getting in the way of financial stability, you may be happy to know that there are alternative options out there.

One option is a no credit check loan. When applying for a loan, the lender will not request your credit report from any credit bureau. On the surface, a no credit check loan may seem like the most ideal loan for bad credit borrowers; but is it? Let’s find out.

The advantages of no credit check loans

Your credit score will not influence your loan approval

Even when your credit score is disturbingly low, it won’t affect your loan process. As mentioned above, lenders will not request your credit file from credit bureaus. As such, any past default or listing that has dragged your score down, won’t come back to bite you.

No collateral

With some lenders, you won’t need to secure the loan on an asset that you risk losing if you fail to repay the loan. Not having it secured also has some downsides. Still, the fact that your credit isn’t checked and you are able to get the loan in the first place eclipses them when it’s an emergency.

It can be used for anything you want

You are free to use the money for whatever you want. A lender won’t typically ask you why you need the money.  Lenders are mainly concerned about whether or not you will be able to pay back the loan appropriately.


Quick cash

Have you been turned down for a loan in the past? It can be a long and frustrating process. One of the main advantages of no credit check loans is that it is quick and easy to access. Simply fill out an enquiry form and then speak to a loan consultant who will explore all your loan options. Gain approval within a matter of hours.

The disadvantages of no credit check loans

High-interest rates

Due to the nature of these loans, they are often coupled with high-interest rates. Unfortunately, if you have bad credit, you will be seen as a high-risk customer. Lenders may not care about your credit score, but they will be cautious with who they are lending their money to. To make sure that you are getting the best possible deal, research online and compare the services offered by lenders.

Smaller sums

When compared to a bank loan, a no credit check loan may have smaller borrowing capacity. With this, the loan term will also be shorter. Most no credit loans may need to be paid back within 1 year. If you don’t, the interest rate may increase and you may be penalised further.

late payments affect credit score

Late payments still affect your credit score

If you thought that getting a no credit check loan and being late on the payment won’t affect your credit score in any way, think again. Payment history accounts for 35% of your overall credit score.

Whilst you have secured a no credit check loan, you must always think ahead. If you continue to miss payments you will continue to decrease your credit score. Your credit score can drop so low that you may not be able to ever borrow money again – not even loans with no credit check. You should give your next move some careful thought.

Do or Don’t?

No credit check loans are, for the most part, quite inoffensive loan types. If you’re stuck in a complicated financial situation and you need that added boost, a no credit check loan can be your saving grace. In saying so, you must find a no credit check loan provider that is trusted and reputable. Explore your loan terms to make sure that you are getting the best possible deal. Before you commit to another form of debt, make sure that you have established a good budgeting plan. Missing payments will only put you in a world of trouble. If you can’t cope with it, you will eventually start missing on payments. Gradually, your credit score will go further down. Debt, no matter how small, is a burden on anyone’s shoulders.

Australian Lending Centre has been providing no credit check loans for thousands of Australians. Contact us on 1300 138 188 for professional advice. Alternatively, fill out our quick and easy enquiry form for a free assessment. One of our trusted loan consultants will contact you to help you explore your options.