Nick BendelNick BendelJul 19, 2018(1 min read)

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

Related FAQ's

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.

Can I get a $1,500 payday loan with bad credit?

Yes, it may be possible to get a $1,500 payday loan with bad credit. Some payday lenders give loans to people with bad credit histories if they believe the borrower has the capacity to repay the loan.

Under Australia’s responsible lending rules, lenders aren’t allowed to approve $1,500 payday loans if they don’t believe the borrower can make the repayments.

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.

Why do people take out $500 payday loans?

People often use $500 payday loans when their savings are exhausted and they get hit with an expense that feels urgent. Examples include:

  • Rent
  • Electricity
  • Water
  • School fees
  • Medical bills
  • Vet bills
  • Car repairs
  • Mortgage repayments
  • Funeral costs
  • Family holidays

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.

What are payday loans?

Payday loans are loans of up to $2,000. Loan terms are generally between 16 days and 12 months, although they can sometimes be longer. Payday loans usually have these three characteristics:

  1. Borrowers need money in a hurry
  2. Applications are assessed rapidly
  3. Loans are expensive (high fees)

Can anyone get instant approval loans?

No. Lenders will only give you an instant approval loan if they believe you have the capacity to repay the loan.

Different lenders have different assessment criteria, but you’ll generally have to meet certain benchmarks regarding your income, spending, employment and identity.

Your application for an instant approval loan might be rejected if:

  • You have a bad credit history
  • You don’t earn enough money
  • You spend too much money
  • Your employment status is not secure
  • You’re not an Australian citizen or resident
  • You’re not at least 18