Nick BendelNick BendelJun 26, 2018(1 min read)

Not many lenders offer no credit check loans – but if you find one that does, the application process is quite easy. Here’s how it works:

  • Find an online lender that offers no credit check loans
  • Decide how much you want to borrow, and for how long
  • Provide information about your identity, income and employment

In the best-case scenario, it might take less than an hour for the lender to assess your application, approve it and then transfer the funds.

Related FAQ's

Why do people use no credit check loans?

People use no credit check loans when they have bad credit and need money in a hurry.

Most lenders steer clear of no credit check loans, because they believe it’s too risky to lend to people with a bad credit score. However, some payday lenders are prepared to issue no credit check loans.

A word of warning – no credit check loans generally come with high fees. Payday lenders can’t charge interest, but they are allowed to charge an establishment fee of up to 20 per cent of the loan amount and a monthly fee of up to 4 per cent of the loan amount.

Loan amount Max. establishment fee Max. monthly fee
$500 $100 $20
$1,000 $200 $40
$1,500 $300 $60
$2,000 $400 $80

Why do no credit check loans have a bad reputation?

There are two reasons why no credit check loans have a bad reputation:

  1. They usually have high fees
  2. Some people believe the loans are exploitative

Payday lenders aren’t allowed to charge interest, but they are allowed to charge an establishment fee of up to 20 per cent of the loan amount ($200 on a $1,000 loan) and a monthly fee of up to 4 per cent ($40 on a $1,000 loan).

Some people feel it’s wrong to charge such high fees, especially because some borrowers may have a low income and may be struggling with debt.

Where can I get a $1,000 payday loan?

Australia has several dozen lenders that offer $1,000 payday loans. These payday loan providers tend to be smaller, lesser-known non-bank lenders rather than well-known big banks. Generally, they’re online-only businesses, which means you’d have to apply for your $1,000 payday loan over the internet. However, there are some payday lenders that also allow in-store applications.

Are $500 payday loans dangerous?

Payday loans can be dangerous because they come with high fees, which could cause problems if you’re struggling with debt. On a $500 payday loan, the lender may charge an establishment fee of up to $100 and a monthly fee of up to $20.

That’s why you should look at a $500 payday loan as an option of last resort – something to consider only if you’ve explored all other options. If you do take out a $500 payday loan, you should have a plan to repay the loan and get out of debt.

How much does a $1,200 payday loan cost?

With $1,200 payday loans, you can be charged an application fee of up to 20 per cent (or $240) and a monthly account-keeping fee of up to 4 per cent ($48) – although you can’t be charged interest.

If the lender charges a monthly fee, the longer your loan term, the more you’ll have to pay. Here’s how the fees can add up:

  • 1 month = $48
  • 2 months = $96
  • 3 months = $144
  • 4 months = $192
  • 5 months = $240
  • 6 months = $288
  • 7 months = $336
  • 8 months = $384
  • 9 months = $432
  • 10 months = $480
  • 11 months = $528
  • 12 months = $576

Should I take out a payday loan?

As a general rule, you should take out a payday loan only if there are no other options. That’s because payday loans are usually very expensive.

Payday lenders can’t charge interest – they can only charge fees. But the fees can be steep, so your borrowing costs might be equivalent to paying an interest rate of more than 500 per cent.

Is it hard to get a no credit check loan?

Not many lenders offer no credit check loans – but if you find one that does, the application process is quite easy. Here’s how it works:

  • Find an online lender that offers no credit check loans
  • Decide how much you want to borrow, and for how long
  • Provide information about your identity, income and employment

In the best-case scenario, it might take less than an hour for the lender to assess your application, approve it and then transfer the funds.