Unsecured Personal Loans No Credit Check Australia
Getting an unsecured personal loan to suit your needs is easy given the wealth of options on the market, but you may find that a bad credit score could impact your success rate with some of the bigger lenders. However, there are still plenty of avenues available to people with bad credit looking for personal financing. Find out more about your bad credit unsecured personal loan options in Australia, and whether you can get one with no credit check, here.
Can I get an unsecured personal loan with no credit check in Australia?
No – there are no lenders who can offer you an unsecured personal loan with no credit check in Australia. Even if you’re borrowing the minimum amount offered by your lender, and even if your lender advertises no credit checks, your credit file will always be assessed as part of your application. This isn’t always to do with your credit score, however.
Bad credit lenders are far more lenient when it comes to credit scores, so they aren’t typically bothered if that is the only negative factor in your application. Your credit file is assessed to gain more personal information about you, such as your residential history and other identifying information. In addition to this, it can reveal public record information like court judgments if you’ve been declared bankrupt or recent defaults on your record for similar types of loans which might suggest a lack of reliability as a borrower. It’s important that you can’t apply for a loan hoping that your lender won’t find these; they will.
The primary reason why borrowers might want to avoid a credit check is that their score is in the lower range and they believe it will impact their capacity to get a personal loan. While this can be the case, particularly with larger bank and non-bank lenders like credit unions, there are plenty of options that you can look to if you’re struggling with your credit score and need personal financing.
What are my unsecured personal loan options in Australia if I have to get a credit check?
If you’re in a position where you feel that avoiding a credit check will help your application, you should probably look to apply for a bad credit personal loan. These are available to customers with bad credit through online lenders across Australia and are an alternative to personal loans with traditional eligibility criteria. These lenders are not as concerned by your current credit score as they are with the current state of your finances and any personal circumstances that might have led to your position. There’s a reason why these are often called “second-chance loans”: bad credit lenders are there to provide you with financing you may not otherwise receive and afford the opportunity to improve your credit score.
Bad credit unsecured loans function in the same way as any other unsecured personal loan: you apply for a certain amount to your lender and, if approved, you’ll pay it back over a pre-determined term with interest and fees. You can still choose whether your personal loan has a fixed or variable interest rate and the term over which you can repay it (between one and seven years). The amount you can borrow will depend on your current finances and what your lender determines is an appropriate and safe amount for you to repay, but the general maximum is $50,000 and a minimum of around $2,000 is likely to be in place.
Just because the application is open to bad credit customers doesn’t mean you’ll be guaranteed approval, though. Your lender still reserves the right to turn down your loan application if they don’t believe the amount you’re asking for is realistic or if you have recent defaults for similar loans showing up on your credit file. As such, you should treat your application as carefully as you would for any other type of financing to ensure the process runs quickly and smoothly.
How to get approved for a bad credit personal loan?
If you have debts outstanding at the time of your unsecured personal loan application, paying them off prior to applying will make you more appealing as a potential borrower to your lender
Lowering your credit card limits is a tactic that many adopt when aiming to improve their credit score. Doing so ahead of your application will show your lender that you’re serious about your finances and keen to service your loan as a means of raising your score.
Countless personal loan applications have fallen flat in years gone by due to the borrower asking for more money than they appear capable of comfortably repaying. It’s important to only ask for what you can manage and what you need overall
Looking over these criteria carefully prior to submitting your application can ensure that you’re approved in a prompt manner. Reviewing these will make you wholly aware of any documents or qualification points that you might’ve otherwise missed that could delay or sabotage your application.