Safrock’s Guide to Small Loans No Credit Check

Small-loans-no-credit-check

No credit check loans

Is there such a thing as no credit check loans? Although it may be possible to get small loans no credit check this doesn’t mean it’ll be the right finance option for you.  At Safrock, we only offer a secured personal loan comparison and refer you to a lender, we do not conduct credit checks, however the lender we match you to might. But if you’re looking for intel on small loans no credit check, you’ve come to the right place. 

What are small loans no credit check?

Firstly, we should probably fill you in on what a small loan is. A small loan in Australia is typically a personal loan up to $2,000. So basically small loans no credit check are loans that are approved by a lender without conducting any form of credit score analysis. The lender will not refer to a credit bureau to verify your creditworthiness. 

As the name suggests, small personal loans are among the lowest types of personal finance in Australia. Since the loan amount does not involve a bigger risk for a lender, some lenders are more willing to provide no credit check loans. 

Borrowers usually go for small personal loans to pay for sudden expenses such as medical bills, dental treatment, car or home repairs, or the urgency to replace furniture or appliances. However, they can also be used for extravagant purchases like your dream holiday. But before we go any further, we should introduce ourselves!

Introducing Safrock

Safrock is the online lender-finder more Aussies are turning to make the borrowing process that little bit easier. We compare premium secured personal loans options and match you with a lender suited to your financial circumstances. There are so many companies and websites offering small personal loans and it can be quite overwhelming when you don’t know which one to choose. That’s why Safrock is here to find you lender offering loans between $2,500 and $25,000. So sit back, relax and let us get to work.  

How can I get a small personal loan?

The application procedure for a small personal loan may differ from other loans. However, the eligibility criteria remain pretty consistent. The basic eligibility conditions require you to be 18 years or older and a resident of Australia. Besides, you must be a citizen of Australia. Those with certain visas or permanent residency in the country can also apply for these loans. There may also be a prerequisite for showing a 3-month regular income proof. You may be asked about your internet banking credentials, myGov account details and car info. Put simply, to apply for an online personal loan you’ll need need to: 

  • Have an active mobile number and email address
  • Must be over 18 years old
  • Have a regular income in a personal account for the past 3 months
  • must be an Australian Citizen 
  • Have an internet banking account

You may apply at banks, credit unions or non-banking financial companies dealing in loans. There are also online lenders, where you can apply. Another option is lender-finder sites, such as Safrock, that can match you with suitable lenders depending on your financial circumstances. Once you submit all the required info, you will get a list of suitable lenders willing to consider your case for a loan. A comparative analysis of each option allows you to select the best for you. Pick the one you prefer and that lender will be in touch with you in the quickest possible time. If a lender rejects your application due to bad credit score, you have the option to find out one allowing small loans with no credit check. 

What is a credit check?

Lenders do a credit score search to check the suitability of a prospective borrower. This is known as credit checks. Banks, utility providers, credit card companies and even mobile service providers run credit checks to establish credit trustworthiness of a person in Australia. Government departments and even employers do credit checks of beneficiaries and employees respectively to validate their trustworthiness. 

Credit checks are of two types – soft and hard inquiries. When an employer just gets a peep into your credit score, it is called a soft credit check. It is not recorded on your credit report. A hard inquiry refers to a deep, detailed examination of your credit history and usually, lenders do a hard check before approving a loan application. It is recorded on your credit report. 

Credit bureaus, such as Equifax, Experian and Credit Simple, provide credit scores on request. As soon as a lender makes a request, they use a set of algorithms to retrieve your credit data from multiple sources and provide a numerical score based on their analysis of your credit history. Therefore, a credit check is all about your history of financial relationships, loans, bills and repaying liabilities.

A credit check is an important parameter to evaluate if a borrower is suitable for a loan. This primarily verifies their financial health, credibility and the ability to repay the debt. A good credit score is an indication of the higher chance of repaying the loan. A bad credit score may indicate the potential loan defaults or delayed repayment warning lenders of the same in the future. 

Can I get a small loan with bad credit?

Yes! Even if you have bad credit, you’re still able to get a personal loan. There are loan products specifically created for those with a poor credit history. Although a lot of lenders will still conduct a credit check, it’s your spending habits, relationship with money and bank statements that they’re more focused on. Lenders seek proof of income for the last 3 months to. You may need to submit your bank statement, valid phone number, car details, internet banking credentials and myGov account details to get such a loan in Australia. The duration of repayment for such small loans with no credit check typically does not exceed a year. 

These credit provisions range from payday loans to small personal loans. While payday loans carry a much higher rate of interest, higher fees and a shorter repayment term, small personal loans are better options with lower fees and up to a year’s time for repayment. 

What is a no credit check loan?

A no credit check loan is when a lender doesn’t check the borrower’s credit score when assessing their application. Custom-made for those with bad credit or no credit history, these loan products extend help to those unable to get a loan with credit check.

Typically, a lender seeks a credit report to assess if a borrower has a good track record of returning loans and manage his loans well. However, in the case of small loans with no credit check, the lender does not request your credit history from credit bureaus. Instead of your historical credit behaviour, the lender looks into your present income as a qualification to repay the loan.

As the regular income is a key factor in approving such loans, this forms the most important part of the eligibility to get such loans. The borrower’s Centrelink assistance is considered a part of his regular income and, thus, a basis for the loan. Lenders also want you to submit bank statements and utility bills to see your income and expenditure pattern to calculate your ability to repay the loan. Some want prospective borrowers to provide the details of their financial liabilities too. 

Though these loans do not require a credit check, they are listed on your report by credit bureaus. Small loans with no credit check impose a lower cost in terms of interest rate and fees compared to bad credit loans. 

Are no credit check loans safe?

Like other loans, no credit check loans carry some risk. It may be a quick, good solution when you are in a crisis situation but unable to get loans due to a bad credit report. Lenders offering small loans with no credit check may try to fleece you knowing that you have no other option. Though you have loaned a borrowed a small amount, you may end up paying higher fees to access it and also expensive interest rates. The temptation to get too many small loans in a short span may put you in a vicious cycle of debt. 

To make sure you apply for safe and reliable personal loans, below we’ve provided a list of things to look for: 

  • Apply with only lenders with good customer reviews and market reputation.
  • Avoid lenders that do the business without a credit license or are not following ASIC guidelines on fees.
  • Go for a loan that you can afford to repay. 
  • Inquire about fees and costs beforehand. Make sure fees and conditions are clearly mentioned. 
  • Use online lender finders to find you suitable lenders and avoid making multiple loan applications.

How do I check my credit score?

It is free and convenient to check your credit score. You need to get in touch with national credit reporting agencies. They may ask for your identification information to fetch the data from different sources and provide an immediate suggestion of what your credit score is likely to be. You need to submit your personal details, including present and past address, date of birth, and driving license or car details. It takes about 7 to 10 days for a credit score report to be generated and supplied.

In Australia, it is mandatory for all credit rating bodies to provide free and full credit history to residents once a year. Equifax, Illion, and Experian are three well-known credit rating agencies operating in the country. You may also approach these bureaus for a free credit history report within 90 days when a request for a loan is denied or any correction is effected in your credit report.

What is a good credit score in Australia?

In Australia, a credit score above 600 is considered a good one. This enables you to apply for any type of personal loan with a higher chance of getting the lender’s approval. 

While most Australian credit rating agencies use a 0 to 1,000 scale for numbering credit score, Equifax has an upper limit of 1,200. On average, the national credit bureaus and lenders consider 600 as the limit for good credit history. Here is a breakdown of credit score ranges as normally accepted in the country.

  • Excellent: 880+
  • Very good: 700 to 799
  • Good: 600 to 699
  • Average: 500 to 599
  • Bad: Less than 500
  • Very bad: Below 400

The higher your score, the more likely you are to get approved for a loan. If you are in the top three categories, it means there is no adverse entry in your report for the last 12 months. Less than 500 credit score is an indication of you are reported for or likely to be reported adversely. Bad credit score prevents easy access to loans. However, you don’t need to stress too much because Safrock partners with lenders who can provide bad credit loans 

How do I apply?

We cannot guarantee small loans no credit check as some of the lenders we partner with will conduct a credit check. However, we can find lenders willing to give everyone a fair go. This means that you might be able to get a loan with bad credit. 

Applying with Safrock is easy! We’re proud to be making it easier for Aussies to access fast, reliable personal loans! Here’s what you’ll need to do:

Apply online

Scroll up to the top of this page and use our loan calculator to input the amount you’d like to borrow and the repayment period and hit ‘Apply Now’. you’ll then be taken to our 100% online application form. this usually only takes people a few minutes to complete. Once you’re done hit submit!

We look for a lender

Once you’ve submitted your application, sit back, relax and let our team get to work. We’ll do our best to match you with a lender suited to your financial circumstances. 

Get in touch with your lender

If we’ve been able to find you a lender we’ll put you in touch. If you’re approved for a loan you’ll be sent an agreement for you to review and sign. Make sure to read over this carefully to make yourself aware of any fees or charges for late or missed payments. When you’re happy, simply sign your contract and send it back. 

Get your cash! 

Once your lender receives your digitally signed agreement you should receive your cash shortly after. This will, however, depend on your lender and the time of day you apply.