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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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Debt Consolidation Personal Loans

Advantages and Disadvantages of Personal Loans

the advantages of a personal loan

There are so many different types of loans out there, it can be hard to know which one you should be taking out for your particular circumstances. We are going to take you through exactly what a personal loan is, when it’s a good option to take one out, the different types of personal loans and finally the advantages and disadvantages of them.

What is a Personal Loan?

As the name suggests, a personal loan is a type of loan you take out for yourself. They are fairly straightforward to process. You borrow a specific amount of money from a financial institution, and then repay this amount, including interest, over a set amount of time.

In fact, personal loans work very similarly to credit cards, but with one big difference – they tend to be much cheaper. Most people have heard of and possess a credit card for day-to-day transactions, yet would not consider a loan based on misconceptions about them only being for large amounts and for those in extensive debt. Personal loans are no different from taking out a credit card, and you may, in fact, find that you can save some money by taking one out.

Different Types of Personal Loans

There are two types of personal loans:

  1. Secured loan
  2. Unsecured loan

Secured Loan

A secured loan works by you offering something up as security in the event that you are unable to pay your repayments. As you would expect, these loans come with a lower interest rate attached as there is less risk being taken on by the lender. They know that if you fail to meet the repayments, they are entitled to the asset you have chosen. You can offer up your house, your car, or another big-ticket item, and then this is used as security against your debt.

Unsecured Loan

An unsecured loan is the opposite, where nothing is offered up as security for the debt. The interest on this type of loan is higher, as you would expect. The lender has no security that they will get the money back from you. If you do fail to make the repayments, they may choose to take you to court.

Whether you opt for a secured or unsecured loan, it is important to weigh up the interest costs of both and decide what works for your circumstances.

Personal Loans

So, the question is, should I be taking out a personal loan?

The answer to this isn’t so black and white. Here are some advantages for you to consider.

Advantages of a Personal Loan:

  • They are versatile: unlike other types of loans, such as a mortgage, a personal loan can be used for whatever you like. Whether you have unexpected medical expenses, are looking to renovate your home, or want to take off on holiday, you choose where that money goes.
  • Better interest rates: as mentioned above, personal loans offer better interest rates than credit cards, making them a better option if you need a small, quick cash injection.
  • You don’t need great credit: unlike many other loans that are based largely on your credit score, personal loans are possible with bad credit. You will end up paying higher rates though.
  • Borrow what you need: if you have an end goal in mind (such as renovating your bathroom), then you only need to borrow the money to cover this. You set the amount and pay it back over time.
  • Approved quickly: personal loans after often smaller than other types of loans on offer, and for this reason, they can be approved quite quickly. Once approved, you have access to the money within a few days.

Personal loans also come with their disadvantages, which also need to be weighed up.

Disadvantages of Personal Loans

  • You are locked in: your payments are made monthly and are fixed in with a certain amount to pay off. While credit cards give you extra time to pay off the balance, if you miss a loan repayment the lender can take you to court.
  • Origination fees: many personal loans come with something called an ‘origination fee’, which covers the cost of processing the loan and amounts to about 1 to 6 percent of what is being borrowed.
  • Debt cycle: personal loans can also encourage a cycle of debt, as people take out loans to cover other loans and pay for things they can’t afford.

In the end, the decision of whether or not to take out a personal loan comes down to your individual circumstances. By weighing up the pros and cons you are able to work out what is best for you and what you need.

Personal loans can be extremely helpful when you need them, so make sure you look into all the pros and cons when it comes to weighing up your options.

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Personal Loans Business Loans Financial Planning Short Term Loans

Top Methods of Getting Personal Loans from Private Lenders

getting personal loans

Every individual or family may need personal loans from time to time. It may be for various reasons: the car broke down, the house needs some renovations, or their daughter is planning to get married in Spring. Regardless of the reason, money is needed as fast as possible.

The problem is that options such as credit card debt or bank loans aren’t always available. Once more, reasons may vary. It may be because you built up too much bad credit or you have no collateral to attach to the loan.

In these cases, a personal loan from a private lender may look like a very good option. They are fast, easy to access, and may overall improve your financial situation. And this article will tell you the top methods of getting a personal loan from a private lender.

#1: Figure Out If a Private Personal Loan is Your Best Option

Before going for personal loans, you need to learn the difference between public lenders and private ones. For one, private lenders aren’t banks, credit unions or financial institutions. They are simply individuals (or companies) with no attachments to a certain institution that lends money to other people. Those who receive a loan from a private lender usually have a certain relationship based on trust.

A personal loan taken from a private lender is different from other types of private loans, in the sense that you don’t need to specify why you need a loan. On the other hand, public lenders will categorise the loan based on your needs: student loans, car loans, mortgage loans, etc.

Keep in mind that personal loans are very different from payday loans. A payday loan will have to be paid very fast – usually within the first two weeks – and they carry a very high interest rate. A private personal loan will have a longer time frame and a lower interest rate – but will still be higher than the one offered by a bank.

There are also risks to personal loans from private lenders, such as shorter payback periods or costly fees. Most will require collateral to secure the loan. If by any chance, you find yourself unable to pay the loan, the lender will be entitled to sell that property to get his money back.

#2: Consider the Alternatives

The most important part of getting a personal loan from a private lender is knowing that there are other options aside from them. If the return of your purchase makes your loan worthwhile, then getting personal loans from a private lender might not be such a bad idea.

Still, before going for a personal loan, you may want to check whether you can use cash to fund that purchase or not (or at least some of it). This may reduce the costs in interest, resulting in a much smaller loan.

You may also want to evaluate all your alternatives. Consider opening a line of credit, or getting a public student loan. If the interest rate is more beneficial for you, there’s no reason for you to take out personal loans. Only do so once you’ve burned out all the other options and know for sure this is your best opportunity.

#3: Access Your Options for Personal Loans

When opting for personal loans from a private lender, you need to do your research on the options that they provide. You may want to focus on lenders that are accredited or have been approved by the government.

You can go for individual lenders or companies. Browse through your options, and see which one is a better way to start. After learning of all the options, you may settle on the one you believe is more convenient for you.

You should also try contacting your family, friends, or business acquaintances. They may be able to offer you a personal loan quickly, with a smaller interest rate. Still, you may want to make sure that there is also a written agreement next to your verbal one. And you should keep in mind that failure to repay this loan can result in damaging your relationship with your lender.

Once you have explored all of your options, collect all the documentation that you need. You need to appear as creditworthy as you can. Show your income sources, your savings, or any physical assets that you use to secure your debt.

Final Thoughts

Personal loans from private lenders can be tricky to deal with – but they are also convenient if bank loans are not an option for you. All you need to do is research your options and come up with a convenient provider. Contact us for a free assessment that has no effect on your credit file and get one step closer to a suitable personal loan.

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Personal Loans

Does Getting a Personal Loan Affect Your Credit Score?

Bad Credit Personal Loans

Personal loans can have a negative impact on your credit score if you fail to repay them on time. Just like it is the case with types of loans, if you’re failing to make monthly repayments, then your credit score deteriorates. But does getting a personal loan affect your credit score?

Problems can start to appear when you’re trying to get a home loan and financial institutions dismiss your application. On the other hand, taking personal loans can actually help your credit score if you’ve never applied for a loan, or dealt with banks up until now. An absent credit score doesn’t mean you have a good credit score. It means that financial institution will be sceptical about you, due to not having any type of information regarding your income or taxes.

Let’s take a look at the impact that personal loans can have on your credit score. Also, let’s see why and how we can address this situation.

How Can Personal Loans Improve Your Credit Score?

  • Just by taking a loan, you start to build up your credit score
  • Paying back the loan proves that you are a worthy and valuable borrower
  • Repaying the loan even faster than the due time shows that your finances are doing great
  • Never skipping payments is a sign that you haven’t taken more than you can afford
  • An active credit history will get you extra points on your credit score
  • Maintaining your account open, even after you’ve settled your debt shows you are a loyal client
  • Personal loans registered on your name reveal that you are mature and Thus, you’ll receive another couple of points on your credit score.
  • The fact that you’ve taken and repaid a personal debt makes you eligible for a home loan, or car loan if the need arises.

How Can Personal Loans Lower Your Credit Score?

  • Failing to make regular payments for your loan will bring you a bad credit score
  • Co-signing on someone else’s loan can affect your credit score as well, for the better or for the worse, depending on whether that loan was paid on time or not
  • Payment defaults and overdue bills do not reflect well on your credit score
  • Refused personal application loans will make it harder for you to get a loan in the future
  • Taking personal loans without first calculating how much you afford to pay each month will not benefit you in the long run
  • Having no sort of credit history also means having a zero credit score, which again, is not good
  • Paying a personal loan 60 days after the due time will lower your credit score greatly
  • Increasing the usage of your personal loan by more than 30% is not recommended.

Personal loans can affect your credit score for the better or lower it up to the point where we’re no longer eligible to apply for a home loan with fixed interest rates or different features that we may like. Keeping your credit score balanced can be done so always try to make regular payments.

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News Personal Loans Short Term Loans

Best Last Minute Christmas Gifts

last minute christmas gifts

With the holiday season just around the corner, everybody is thinking of the best Christmas gifts that would make the loved ones in their lives happy and appreciated. But, most of the times, this season catches us off guard and utterly unprepared, and, all of a sudden, Christmas is only a few weeks away. This is where our guide comes to the rescue – keep on reading to get inspired with ideas for best last minute Christmas gifts. We wish you the best of luck and happy shopping!

Christmas gifts for travelling enthusiasts – “Where I’ve been” scratch travel map

This is a great Christmas gift idea, especially for those who are keen on travelling. It is a map that is covered in a particular kind of sheet you can scratch off. Scratching the map on the parts that the travelling enthusiast has visited will be utterly exciting, and fun as well. Of course, you can also opt for booking a vacation for your beloved one. It depends on your budget.

Spa gift card

Out of Christmas gifts inspiration? If you wish to spoil your significant other, you could opt for offering her a spa gift card. Whether it’s a card for getting a manicure, facial, or even a relaxing massage, your loved one will genuinely adore being pampered and look her best during the most beautiful season of the year. Take it from us. If not, you could consider a spa skincare set, for your loved one to create a spa day at home. You can take your pick.

Concert tickets

Getting concert tickets for your dear ones is a great, effortless idea. You don’t have to shop around, be it the case you are a terrible shopper. If you know your dear one’s preferences in music, purchasing concert tickets to his/her favourite artist is simply great. He/she will love the gesture.

Charitable donations

This is a great idea for a last minute Christmas gift, and it works, especially if the person you intend to get the gift for is interested in this kind of thing. Still, before making the donation, consider the person’s interests. For instance, if your dear one loves animals very much, then make the donation to a charity organisation concerned about it. Or, if your dear one has fought cancer in the past, make a donation on his/her behalf to such an organisation.

If you have any trouble in the financial department, enquire with Australian Lending Centre to get you sorted before Christmas!