Taking out a personal loan is a quick and easy way to give yourself a much-need cash injection. Of course, you often want to take out the loan as easy as possible, without getting a credit check against your name. Personal loans with no credit check are your solution. Perhaps you have made a few mistakes in the past that have left you with a low credit score. Or maybe you just want a quick and easy credit option that doesn’t involve a long, in-depth process. This is possible with personal loans with no credit check and we are going to show you how below.
What Are Personal Loans?
A personal loan is a loan you can take out for your own needs. Whether you are buying a new car, taking off on a holiday, renovating your home, or have been in an accident and need to cover the costs, a personal loan offers a great solution to your needs. You agree on a specific amount to borrow and then make the repayments monthly to your chosen lender until the loan is paid off. They often come with a lower interest rate than that of a credit card, making them a great option when you need the cash.
There are a few types of personal loans with no credit check to choose from:
- Fixed personal loan: this comes with a fixed interest rate for the duration of your loan period.
- Secured personal loan: this is a loan that is secured by an asset, such as your home, which comes with a lower interest rate.
- Unsecured person loan: this loan has no security attached to it, making it more of a risk to the lender and therefore driving up the interest rates.
Often, when you apply for a personal loan, your credit history is immediately checked before the loan is offered.
What Is Your Credit Score?
Your credit score is a reflection of your borrowing history and takes into account a number of differing factors. Here are some of the things that affect it:
- Your borrowing history: if you have a long borrowing history, with different lines of credit that are all repaid on time, it will reflect positively on your credit file.
- Credit utilisation ratio: the amount of credit you use is also reflected on your file. If you are using all the credit available to you, it suggests you are overstretched and not open to taking on new loans. You want to keep this figure under 80%.
- Repayments: a good history of repayments being made on time each month, with no defaults is always a good sign on your credit score. Likewise, if you have a bad history of missing or defaulting on payments, this will also be reflected in your score.
- Too many applications: if you apply for too many loans at once, this will also reflect poorly on your score. If you are shopping around for a lender, you want to make sure you make all your enquiries in a short space of time, so they aren’t reflected on your credit score.
Now you have a good understanding of some of the things that affect your credit score, it’s time to take a look at whether it is possible to take out personal loans with no credit check.
Personal Loans With No Credit Check
Many lenders do in fact offer personal loans without performing a background credit check. There are lenders out there who specialise in bad credit loans and make a decision about your lending ability on a case by case basis. There are three types of personal loans with no credit check that you are generally able to apply for:
- Secured personal loan: often, as you are putting an asset up as security, these loans are the easiest to get without a credit check.
- Unsecured personal loan: these are provided on a case by case basis and it is a matter of finding the right lender for you.
- Payday loans: these are smaller, short-term loans that are designed to tide you over financially until your next payday. As such, they are often easier to take out without a credit check.
Most lenders will look at your income and other external factors before deciding whether you are worth taking the risk on. It is worth noting, that these loans often come with higher interest rates in order to help offset this risk.
Get The Right Help
If you are looking at taking out personal loans with no credit check, then you need to find the right lender to meet your needs. Here at Australian Lending Centre, we have the skills and expertise to help you take out your loan as quickly and easily as possible, with no credit check in the process.