Can You Get Urgent Loans No Credit Check?
When you’re applying for finance in Australia, having a good credit score can open up plenty of doors for you. But what if you’re just starting to develop a credit history, or some setbacks have saddled you with bad credit? You might find yourself searching for urgent loans with no credit check, or some other alternative that won’t take your credit score into account.
While Swoosh doesn’t offer no credit check loans, we do believe your credit score shouldn’t hold you back in life. That’s why we offer bad credit loans as an alternative to help you get finance when you need it most! And it’s also why we’ve written this blog to take you through the world of no credit check loans, and offer some alternatives.
Overview
- What is a credit check?
- Do no credit check loans exist?
- Alternatives to urgent loans no credit check
- How to improve your credit score
- Can Swoosh help with urgent loans?
What is a credit check?
Before we dive into the world of no credit check loans, it might be helpful to understand what a credit check actually means.
A credit check is a way for lenders to check your credit score and assess the level of risk that comes along with it. Your credit score is based on all the personal and financial information kept in your credit report, including:
- The amount of money you’ve borrowed
- The amount of times you’ve applied for credit
- How reliably you pay on time
Why does your credit score matter?
Your credit score is an important factor that influences decisions made by banks, lenders, and even utility companies. It’s an easy way for them to judge the level of risk associated with lending to you, and what type of terms and conditions to offer you. Having an excellent or good credit score is a way of showing lenders that you’re a low-risk borrower, and it might even allow you to borrow more with better interest rates and terms.
Checking your credit score before applying can help you negotiate better deals with lenders, or understand why you aren’t getting approved for loans. You can check your credit score for free once every three months from the three major credit bureaus, Experian, Equifax, and Illion.
What is a good credit score?
Each credit bureau has its own criteria, so what counts as a “good” credit score can vary based on which credit bureau you check. We’ve laid out the different credit score ranges from the three main bureaus below.
| Credit bureau | Excellent | Very Good | Good | Fair | Below average |
| Equifax | 853 – 1,200 | 735 – 852 | 661 – 734 | 460 – 660 | 0 – 459 |
| Experian | 800 – 1,000 | 700 – 799 | 625 – 699 | 550 – 624 | 0 – 549 |
| Illion | 800 – 1,000 | 700 – 799 | 500 – 699 | 300 – 499 | 1 – 299 |
Most credit scores are between 300 and 850, with a score of 550 or more considered good. Your score is one of the most important pieces of information that lenders look at when deciding whether or not to lend you money.
What is a bad credit score?
Credit bureaus typically don’t use the term “bad credit” when describing someone’s score. However, as you can see from the table above, a score below 550 would be considered below average.
Many factors contribute to a below average score, such as defaulting on payments, maxing out credit cards, or making too many credit inquiries. But sometimes these matters are completely out of your control. At Swoosh, we don’t think it’s fair to judge someone solely based on their credit score. That’s why we offer bad credit loans that take into account all your financial circumstances to give you the best shot of approval.
Why do lenders need to check credit scores?
Lenders use your credit score to decide whether or not you are eligible for a loan, what amount to lend you, and what the interest rate should be. The better your credit score is, the better your chances are of being approved with terms and conditions you find favourable.
Do no credit check loans exist?
Yes, no credit check loans do exist in Australia. Where lenders offer them, they may still conduct a “soft” credit check, which verifies your identity and makes sure you are capable of paying back the loan. These loans are typically for smaller amounts, and usually come with higher interest rates than regular loans. Some benefits of a no credit check loan include:
- It may have faster approval rates than a traditional loan
- Access to a legitimate source of finance even with bad or no credit history
- Usually, they are unsecured loans, meaning you won’t have to risk an asset like your car or home being repossessed
Some of the downsides to no credit check loans include:
- Limited choice of funds: you might not be able to borrow the full amount you need
- Limited choice of lenders: while no credit check loans exist in Australia, they are certainly more rare and harder to find than regular loans, or even bad credit loans
- Typically they involve higher interest rates
- Less flexible payment periods
Below we’ve listed some potential options for no credit check loans. As always, you should weigh up your options and consider the financial implications of taking out a no credit check loan before deciding it’s right for you.
NILS
No Interest Loans are one option for no credit check loans, allowing you to borrow small amounts with no interest or extra charges. They might sound too good to be true, but they’re a very real and very useful tool to help people with low income access credit for goods and services, or to get out of an emergency situation.
There are some strict eligibility requirements, so make sure you check whether you meet them and what you’ll need to apply before starting. Contact your local charity for more information. And, if you’re struggling, the National Debt Hotline might be able to offer support.
Guarantor loans
Some lenders that offer no credit check loans might do them via guarantor loans. A guarantor loan is backed by a trusted person in your life, either a close friend or family member, who agrees to accept the financial responsibility if you become unable to repay the loan.
This type of loan won’t suit everyone. But if you decide to go ahead with a guarantor loan, it’s important to have an open and honest conversation with the person you hope to guarantee the loan. This way everyone knows and consents to all the potential risks involved.
Small personal loans
Small personal loans, also known as small amount loans or payday loans, can sometimes be offered by lenders as no credit check loans. This form of credit became popular in the 1990s when banks and other lenders reduced their short term lending offers.
Again, these loans often come with higher interest rates, but every lender will have their own unique requirements. If you’re thinking about taking out a no credit check small personal loan, make sure you shop around and consider your circumstances before making a decision.
Alternatives to urgent loans no credit check
While a no credit check loan might seem like your only option, there are a few other ways you can get money fast to cover your expenses.
Bad credit loans
Bad credit loans are a way to get fast cash even if you’ve got bad credit. Responsible lenders like Swoosh still conduct a credit check, but also take into account your entire financial situation before making a decision. As long as you meet our lending eligibility and criteria, you can apply for up to $5000.
Centrelink advance payment
Most people who receive a Centrelink payment can apply for an advance payment. Since it’s not a form of credit, there’s no interest or fees, but you will have to pay it back later from your future Centrelink payments.
Earn money fast
Whether you need a little extra boost to your income, or you need a chunk of cash fast to pay for some emergency bills, there are plenty of ways to earn money fast. We’ve put together 13 tips on how to earn money fast, from selling items in online marketplaces like Gumtree, to cleaning houses or joining a focus group.
Emergency fund
This tip might not help if you’ve got a big expense that needs to be paid soon, but it could help you avoid money problems in the future. Having an emergency fund helps you prepare for hard times, like losing your job or a sudden onslaught of bills. Experts recommend having enough to cover three months worth of expenses, but that might take a long time to build.
You can always start small, putting aside $20 or $50 a week. By the end of the year, you’ll still have enough to cover an emergency breakdown, or some unplanned bills.
How to improve your credit score
If you keep getting knocked back for loans, or you checked your credit score and found it lower than you thought, there are some things you can do. Tips to improve your credit score include:
- Pay your bills on time: this is one of the easiest ways to improve your credit score, since you likely already pay internet, water, and electricity bills. Simply paying on time demonstrates good financial responsibility. If you find yourself struggling to meet payments, look for places you can cut down on spending. If that doesn’t work, contact the business before the due date to work out a payment plan or new agreement, rather than skipping payments or paying late.
- Diversify your credit portfolio: responsible use of credit cards, personal loans, and debt consolidation loans can actually improve your credit score. By only using them when you can afford to meet repayments, and making sure you meet those obligations on time, you could increase your credit score.
- Practice good financial habits: this includes living within your means, maintaining a good debt-to-income ratio, and avoiding unnecessary debt.
Can Swoosh help with urgent loans?
While we don’t offer no credit check loans, we can help you with urgent loans even if you’ve got bad credit. Our bad credit loans look beyond your credit score–-taking into account your unique financial circumstances to give you the best chance of success. We’re here to give Aussies a fair go, and our online application makes the process easy. Apply now, or contact us today for more information.
FAQs
Does applying for a loan hurt your credit score?
When you apply for a loan, lenders will usually need to do a hard credit check. This can cause a temporary dip in your credit score, but it should quickly recover. However, making too many credit inquiries in a short period of time can be seen as a sign of financial stress or risk by lenders.
How can I check my credit score?
You can check your credit score for free once every three months from the three major credit bureaus, Experian, Equifax, and Illion. Further checks may incur a fee, depending on the credit bureau and the reason for the enquiry.
Can I get an urgent loan with bad credit?
Yes, it’s completely possible to get an urgent loan with bad credit. Lenders like Swoosh offer small personal loans with flexible terms to give all Aussies a fair go at finance. Apply online at any time!
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