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Personal Loans With No Credit Check

personal loans with no credit check
Looking for a quick & easy finance option with no impact on your credit score?

Taking out a personal loan can be a quick and easy way to give yourself a much-needed cash injection. In this article, we are going to discuss a form of personal loan that is fast, easy to apply for, and doesn’t involve a credit check against your name. Personal loans with no credit check present a fantastic financial opportunity along with a few factors to consider. We cover them all below.

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 financial solution that doesn’t involve a long, in-depth process. Personal loans with no credit check make this possible.

What Are Personal Loans?

A personal loan can be taken out to be used for a variety of personal reasons. 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 repay your chosen lender monthly 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 to choose from:

  • Fixed personal loan: this comes with a fixed interest rate for the duration of your loan period.
  • Variable personal loan: the interest rate can fluctuate throughout the loan agreement.
  • 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, making it more of a risk to the lender and, therefore, driving up the interest rates.

When you apply for a traditional personal loan, your credit history is often checked before the loan is offered. Continue reading to learn how this differs from personal loans with no credit check.

no credit check

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 try to keep this figure under 30%.
  • 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. This is because each time your credit file is checked by a lender through a hard credit check, a credit enquiry is stamped on your file.

Different Credit Bureaus have alternative credit scoring models. Take a look at the breakdown of Experian’s and Equifax’s scoring system.

 ExperianEquifax
Excellent800-1,000853-1,200
Very Good700-799735-852
Good625-699661-734
Average550-624460-660
Below Average0-5490-459

Now that you understand some of the things that affect your credit score, it’s time to consider whether it is possible to take out personal loans with no credit check.

Why Apply For Personal Loans With No Credit Check

Many lenders, including the Australian Lending Centre, offer personal loans without having to perform a background credit check.

There are a number of reasons for wanting to apply for a loan with no credit check.

  1. The most common reason is that a person’s credit score is too low to gain approval for a standard personal loan.
  2. Another common reason is that the applicant does not have enough documentation (payslips etc) to support their application. This is particularly true for self-employed people, or those who have recently moved/been unemployed for a period of time.
  3. Another reason to seek a no credit check loan is to preserve your credit score. Perhaps you are preparing for a mortgage application or a car loan soon and don’t want to damage your credit score by applying for a smaller loan.
Why Apply For Personal Loans With No Credit Check

3 Main Types of No Credit Check Personal Loans

There are three types of personal loans with no credit check that you are generally able to apply for:

  • Secured no credit check personal loan: because you are putting an asset up as security, these loans are often the easiest to get without a credit check.
  • Unsecured no credit check 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 designed to tide you over financially until your next payday. As such, they are often easier to take out without a credit check. Always be particularly careful before proceeding with a payday loan. They can come with hidden fees and high-interest rates.

Most lenders will consider your income and other external factors before deciding whether you are worth taking the risk on. It is worth noting that personal loans with no credit check do often come with higher interest rates than standard personal loans to help offset this risk.

Get The Right Help

If you are considering taking out a personal loan with no credit check then the Australian Lending Centre have the skills and expertise to help you take out a loan as quickly and easily as possible, with no credit check. Apply here in less than 5 minutes.

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Personal Loans

Questions to Ask When Applying for a Personal Loan

personal loan

Whether you want to go on a holiday, pay for medical bills, buy a new car or renovate your home, a personal loan can help you achieve whatever your goals are. Before you jump right into a fast loan application, it is important to ask the right questions. We’ve mustered up a list of some key questions to ask when applying for a personal loan.

Here are 4 questions for those considering personal loans

Is it the right loan for me?

People use personal loans for various reasons. Before you apply for one, determine whether or not a personal loan is the right loan option. Some of the main uses of a personal loan include;

  • Paying off medical bills
  • Car repairs
  • Home renovations
  • Wedding
  • Debt consolidation.

Compare loan products and make sure that your choice can serve your needs better. For instance, you could take out a debt consolidation loan instead of a personal loan to pay off your existing debts. If you want to renovate your home, you can tap into your home equity and possibly get a better rate than a personal loan. Research is therefore key.

What is my borrowing capacity?

One of the first questions to ask when applying for a personal loan is how much can you borrow. As with any loan, there is a borrowing capacity for each individual. Whilst personal loans are typically smaller in size, in comparison to a home or business loan, there is still a limit as to how much someone can afford to borrow personally. This limit will depend on various factors including income, expenses, debt, residency status and credit score.

So, before you rush into applying for a personal loan, you should consider establishing a budget. Determine how much you can afford to borrow by looking at your income and expenses. Use this handy online calculator to quickly create a budget plan.

Am I choosing the right lender?

There are many financing sources that offer personal loans and each source has its own range of interest rates, and terms vary. Find the best lender that fits your needs by shopping around.

Here are some tips in finding the right lender:

  • Start by asking someone close to you that has recently secured a personal loan. See if they can recommend their financing institution. You can also ask a financial adviser, to give you a shortlist of referrals.
  • Visit your lender’s website and investigate their offerings for details. At the Australian Lending Centre, we have loan experts online to tell you about the basic things you need to know about our loan products. We believe that advertising is glittery; so we will help you look beyond the advertisement and find out about eligibility requirements, fees, and other features of our personal loan product. Don’t be afraid to enquire online. We’ll explain to you the best options available, without placing a credit enquiry on your credit file.

Finding the right lender can help you get the most favorable loans to finance your needs. Remember that personal loan lenders not only originate, process, approve and close your loan application but also participate in one of the most important financial decisions you will make.

What are the terms of the loan?

Look into your obligations whenever you apply for a loan. Always read the fine print and ask for a full disclosure of the terms of the loan before you sign it. Don’t forget to ask about the monthly payment, the term of repayment, late fees and penalties for prepayment. When the lender offers lower interest rates, check on the origination fee that can eventually hike your interest rate.

What are the fees associated with a personal loan?

Find a lender that is transparent with their loan services. Make sure to look out for the establishment fee, servicing fee, early exit, early repayment and insurance fees. The last thing that you want is one of these hidden fees appearing in the fine terms of the terms and conditions. Take the time to consider these fees when assessing your personal loan options.

Are there different types of personal loans?

Personal loans can come in two main forms; secured or unsecured. The type of personal loan that you are offered will vary depending on each individuals personal circumstances and eligibility criteria. A secured personal loan is one that is guaranteed by an asset. The idea behind this is that if you default on your loan, the lender can take the asset if you default on the loan. Collateral can include anything from real estate property, motor vehicles or other property. This will vary depending on the lender.

What is my credit score and can it impact my chances of loan approval?

When was the last time you checked your credit score? Do you even know what a credit score is? If your answer to both questions is known, then you really need to quickly learn all about this. With lenders now stricter than ever, your credit score can directly influence your chances of being approved for a loan. Lenders will look at your credit file to assess whether or not you are capable of repaying a personal loan back. With the comprehensive reporting system in place, lenders can also look at your repayment history to see if there are late repayments. All this along with defaults, blackmarks and court judgments can be assessed by a lender.

Checking your credit score is, therefore, one of the most important things to do before you apply for a personal loan. Fortunately, you can access this online through credit reporting bodies such as Equifax, Ilion and Experian. At the same time, you can have a credit specialist assess your credit file for a small fee. Repair agencies such as Clean Credit offer a comprehensive analysis of your credit file.

How often can I make repayments on my personal loan?

One of the more important questions to ask when applying for a personal loan is how often can you make repayments. Depending on the lender, you have various choices of repayments. Whilst traditional lenders such as banks are typically stricter with their repayment policies, alternative lenders are not. Lenders such as Australian Lending Centre and Bad Credit Loans offer customers weekly, fortnightly or monthly repayment terms. So, before you apply consider how you will be making payments. If for example, you are paid on a monthly basis, it may be more convenient to make monthly payments. In this case, find a suitable lender.

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Personal Loans

What To Do When You Can’t Make a Personal Loan Payment

cant meet a personal loan payment
cant meet a personal loan payment

When you have large outstanding debt, this could make it challenging for you to make timely repayments. And when you miss a payment, it is just a matter of time until you miss another one, and you enter a vicious cycle. Learn what to do when you can’t make a personal loan payment.

What can you do when you can’t make a personal loan payment?

Talk to Your Lender

For starters, you should consider discussing with your loan provider – whether it is a bank or a credit union, this should be the first thing on your list. Believe it or not, it is not that uncommon for people to struggle with making repayments. This can happen due to numerous reasons: it might be because of a large outstanding debt, or due to an unexpected life event, such as an illness, divorce, or natural catastrophe.

So, you should approach your lender and be utterly upfront regarding your situation. Truth be told, being transparent is critical. You shouldn’t feel ashamed to tell your lender that you’re struggling financially.

Negotiate for a Lower Interest Rate

Moving on, when you approach your lender, you should aim at negotiating for a lower interest rate. This could be really beneficial in aiding you to budget your finances more efficiently. You should assess the repayment amount you could cope with – perhaps the lender would be willing to make the arrangements to fit your individual needs.

Outline the fact that you wish to honour your outstanding debt, and the only way in which you can do that is if the monthly repayment were to be reduced. You might be required to write a letter of financial hardship, which should minutely present the reasons that caused your financial hardship. This letter should include the facts – such as job loss, divorce, illness, or other factors that determined your inability to make payments.

Nonetheless, try to keep the letter as to the point as possible. You should be upfront, yet not overly emotional, since this doesn’t portray you in the right light.

Consider Refinancing

In the case in which your current lender isn’t open to lower your interest rate, or to make the repayment plan more flexible so that it meets your needs, don’t give up. Another option might be collaborating with other providers of personal loans. This applies especially if you’re paying way too much in interest costs. This could be the case especially if you got the personal loan a while ago when loan terms were far from being convenient.

Refinancing is definitely worth considering, in this respect. Apply for a loan that would give you the funds to cover for the remaining amount on your personal loans. As soon as your application is accepted, you can use that money to pay for your existing debt.

Bear in mind..

Refinancing still means that you have the same amount of debt. The only difference is that you could save money in interest rate costs. At the same time, you could benefit from loan terms that are more suitable to your existing financial situation.

The key to knowing, for sure, that you’re actually getting a better deal is to research. Always compare various personal loans provided by distinct lenders. Australian Lending Centre can help in this respect, as well – make sure you check our website to find out more about our comprehensive offer of personal loans.

So, should you consider refinancing or not? The suitability of refinancing truly depends on your given circumstances. Ideally, you should assess how much your current personal loans are costing you, and compare that to the sum of money you’d pay for a new loan. Still, don’t forget to include one-time fees and other penalties that may apply in some scenarios. As a rule of thumb, don’t overlook reading the fine print of the loan terms, to know what you’re agreeing to.

Consider Credit Counselling

If you can’t make a personal loan payment, then it is likely that you also cannot afford to get help in the form of another loan. Perhaps getting credit counselling might guide you in the right direction.

Having an outside perspective can change everything. Counsellors are used to helping people that cope with the most difficult financial problems. Make sure you pick a counsellor that is truly reputable and willing to help – as opposed to someone that is trying to sell you something or to convince you to get another loan.

To conclude, it’s critical to comprehend your financial situation and avoid getting additional debt, if it’s possible. The key to making smart financial decisions is being aware how much money you make, and how much money you spend, and what you can do to change things for the better. Change doesn’t happen overnight, but, with a little bit of perseverance and ambition, anything is possible.