Do loans with no credit check really exist?
Have you ever wondered if there are any lenders that give out loans with no credit checks? Getting a loan in Australia could be difficult, but especially so if you have bad credit or no credit score it can get particularly difficult.
- What is a loan with no credit check?
- How do no credit check loans work?
- Who are these loans for?
- How to get a loan with no credit check?
- What can I use this loan for?
- Does Swoosh do credit checks?
- So why choose Swoosh?
1. What is a loan with no credit check?
According to the National Consumer Credit Protection Act 2009 (National Credit Act) from ASIC, most lenders want to complete a credit check on loan application to see how well you’ve managed past debt. This information then helps a lender to qualify you as a potential borrower and offer a competitive rate. The rule of thumb is, the higher your credit score, the lower your interest rate.
2. How do no credit check loans work?
Loans without credit check on the other hand are based on your current bank statements and pay slips to determine your affordability. No credit check loans more often than not also require you to pledge collateral—a personal asset you use to secure a loan and one the lender can repossess if you fail to meet the repayment terms.
3. Who are these loans for?
No credit check loans are particularly helpful for people who may have made some financial mistakes in the past or have a poor rating.
4. How to get a loan with no credit check?
While borrowing from a bank might be many people’s preferred option, loans with no credit check might be the only option for many. There are a number of providers who offer no credit check loans. These include:
- Pawn shops – Pawn shops sell items, and they give out short-term pawn loans too. They’ll usually give you a ticket with your cash, which you’ll need when you repay the loan in order to get your pawned item back.
- Pay advance apps – This is a new way of getting a no credit check loan. There are a number of apps that will now give you cash advance before your payday and deduct the amount for your next paycheck.
- Online lenders – A lot of online lenders have no credit check loans to help people with poor or no credit history.
5. What can I use this loan for?
Once approved, you can use a cash loan for any reason. This loan can be used for:
- Paying your car registration
- Car repairs or modifications
- Buying furniture
- Cover moving costs
- Pay off multiple loans so you only have one to worry about
- Medical, dental, or specialist expenses
- Travel or holiday expenses
- Utility bills
- Unplanned funeral expenses
6. Does Swoosh do credit checks?
As a responsible lender, we conduct credit checks on every application. After evaluating current bank statements we determine whether you have the ability to repay the loan. This way we don’t solely rely on a credit check – bad credit history follows thousands of Australians each year and we at Swoosh understand that this can happen to anyone. So if you’re able to pay off the loan now, you can borrow money against your vehicle and get your cash flow sorted.
For more information on our processes and procedures, check out our FAQ page.
7. So why choose Swoosh?
Even though we do a credit check, we don’t solely rely on your credit history. As a responsible lender we want to make sure that you are not only able to pay off your loan right now, but getting a loan will not affect your future aspirations.
That’s why we’ve made our eligibility criteria easy to understand and you can apply for a Swoosh loan online in minutes. Our team of local experts is here to help you now and assist you with all your future needs.