Getting a Personal Loan With No Credit Check Guide

By Angela Monroe - March 9, 2020

If you have bad credit, you may have struggled with getting a personal loan approved in the past. It can be really disappointing to face rejections for bad credit personal loans but don’t give up! The good news is that it is possible to get a bad credit personal loan with no credit check.

When you opt for a bad credit personal loan, you’ll want to be aware of everything involved. Getting a personal loan with no credit check can be a great option – but it’s important that you fully understand the higher rates of interest that you might pay and any other conditions or fees to note.

Understanding ‘no credit check’

Normally, when you apply for any type of loan, your potential lender will carry out a credit check. This is where they’ll check your credit rating and look at your credit history. This can make things difficult if you have bad credit as lenders such as larger banks often have strict criteria and simply won’t lend to people with a low credit score.

A personal loan with no credit check means exactly that. Lenders who offer this type of bad credit personal loan do not require a credit check in order to offer approval on the loan application.

Instead of a credit check, there could be other criteria that a lender may request such as:

  • Employment history
  • Minimum Income
  • Proof of a stable address

Always make sure you fully understand what is required from your bad credit personal loan with no credit check so you are certain that you meet the eligibility requirements.

The advantages of a personal loan with no credit check

  • Opportunity for borrowing: this type of loan could be the only option for a borrower who has a very low credit rating and has previously been rejected by other lenders. A personal loan with no credit check means that you still have the opportunity to borrow money to spend on something that you may urgently need such as car repairs or unexpected medical costs.
  • Quick access: a personal loan with no credit check can offer people with bad credit the chance to access funds quickly and easily. Often the application is done entirely online which means you won’t have to face a lengthy wait and you can access the money you need when you need it.

The disadvantages of a personal loan with no credit check

  • Higher interest rates: you need to be aware that if you do take a personal loan with no credit check you’re likely to face pretty high-interest rates. This is generally because the lender will see you as a high-risk borrower and want to ensure that the money is paid back on time and in full. The flipside of having no credit check is often that interest rates on bad credit personal loans are much higher.
  • Strict terms: always make sure that you’re aware of when the loan must be paid back by. Personal loans with no credit check often have stricter loan terms than other types of loan to ensure that the lender is protected. If you don’t think you can afford to pay back the loan within the set loan term, you should not take the loan as defaulting or making late payments will damage your credit history even further.

Considering a personal loan with no credit check

 You should see this type of bad credit personal loan as a last resort. It’s not ideal to be paying such high rates of interest and you could find yourself in even more debt.

Think about your credit score and where it currently stands. If it’s very low, consider ways to improve it and think about whether you can delay your loan application until you have improved your score or been able to save a bit of money.

If you do decide to get a bad credit personal loan with no credit check, find the right lender. Unfortunately, lots of personal loans with no credit check come from online providers who take advantage of the situation you may be in – realising that you are desperate to get a loan. The right lender will offer a fair solution and you should feel comfortable speaking to them directly and asking any questions that you might have.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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