Is your bad credit stopping you from securing a personal loan? If you feel like you’re running out of options, then keep reading because there are plenty of options available. One such option is a personal loan with no credit check.
Before we dive headfirst into personal loans with no credit, it is important to break down your current financial situation. Personal loans with no credit check have their benefits, but they also come with typically higher interest rates. For this reason, it is essential that you check your own credit score. This will help you quickly realise whether or not you actually need a personal loan with no credit check.
Understanding your credit score
So, you have just checked your credit score and you see a score of 370. What does this mean? You begin to question whether or not you will ever be approved for a loan? Did you notice any defaults? Court judgements or blackmark? If so what do they mean?
A credit score is a numeric representation of the details within your credit file. The score is calculated based on various factors. These factors can be analysed by lenders to assist in determining whether or not you are a responsible borrower who is capable of repaying back a personal loan.
Different Credit Bureaus have alternative credit scoring models. Take a look at the breakdown of Experian’s and Equifax’s scoring system.
| Experian | Equifax | |
| Excellent | 800-1,000 | 853-1,200 |
| Very Good | 700-799 | 735-852 |
| Good | 625-699 | 661-734 |
| Average | 550-624 | 460-660 |
| Below Average | 0-549 | 0-459 |
How is your credit score calculated?
According to both Experian and Equifax, your credit score is calculated using a statistical algorithm that uses past events to predict future behaviour. Each credit bureau will use a slightly different algorithm to calculate your score. The outcome, however, is relatively the same, and your credit file will reflect whether you have any negative listing regardless.
Familiarise yourself with your credit score
Understanding your credit score is really important, especially if you are applying for credit. Why might you ask? Well, some lenders factor in the credit score when assessing your credit application. If your credit score is really high, you may not need a personal loan with no credit check. Here you can apply for a regular personal loan with potentially better interest rates and term. This will save you money in the long run.
If however, your credit score is low, then it may be time to consider applying for a personal loan with no credit check.
What is a personal loan with no credit check?
As the name suggests, a personal loan with no credit is just that; a loan that is approved without checking your credit score. The lender will not request your credit report from credit bureaus. This means that your borrowing history will not be made available to any lender.
If you have applied for loans in the past, your credit file may have the loan information. When applying for a loan, traditional lenders will request your credit file and look at how many loan enquiries have been made. If you have made a lot of loan enquiries in a short period of time, you can be rejected for a loan. As mentioned, lenders won’t factor in your credit file meaning you can take care of your financial matters without having your credit file holding you back.
Where can I get a personal loan with no credit check?
No credit check loans are usually offered by alternative lenders such as Australian Lending Centre or Bad Credit Loans. Alternative lenders are more flexible with their lending requirements. This does not mean that they are not responsible lenders. If you’re thinking about applying for a personal loan with no credit check, it is important to note that alternative lenders will ask for the following information:
- Income: You will need to show lenders that you can afford to make the repayments for your loan.
- Employment: employment is necessary for making repayments. Some lenders will also factor in your Centrelink income when applying for a loan.
- Bank account: Lenders will typically request to see your bank statements from the last 3 months or even 6 months depending on the lender. The lender will assess your bank statements to see whether you will be able to pay the loan or not.
How do I apply for a personal loan with bad credit?
Fortunately, applying for a personal loan is quick and easy. Australian Lending Centre has a simple online enquiry form that will take a matter of minutes to fill out. The enquiry form will request basic information such as name and email along with your borrowing amount.
In a matter of minutes, a loan specialist will contact you to discuss your lending options. They will quickly understand your financial situation and make an assessment. All consultations are discreet, hassle-free and professional. Once you have been approved for a personal loan, you can access the funds in your nominated bank account. So, don’t let your past borrowing history stop you from securing a loan.
