Cash Loan Australia No Credit Check
If you’re in need of a cash loan but you know your credit score isn’t as stellar as you want it to be, don’t panic! Because there is still a way for you to apply for cash loans without having to go through a background check regarding your credit history. So, if you’re interested about where you can go to get the money you desperately need, then continue reading this article and we’ll tell you everything you need to know about no credit check loans.
But before we do that, here are a few things you should know about no credit check cash loans.
What is a credit score?
A credit score or rating depends entirely on the credit company that is calculating it. They have different factors that consist of a credit score. But it’s generally agreed that the higher the credit score, the better it is for the person holding that score. Some credit companies have the limit to 1,200 while others only reach 1,000.
Following the example of Experian, a major credit bureau based in Australia, this is the usual breakdown of the credit score ranges:
• Excellent: 800 – 1000
• Very Good: 700-799
• Average: 625-699
• Fair: 550-624
• Low: 0-549
It’s difficult to garner an excellent credit score as only 3.5% of all Australians have this score. Difficult but not impossible. However, if you have less than a fair credit score, then you have the option to check out no credit check cash loans, which makes life a little bit easier for people who have had trouble paying off essentials.
Why do lenders check your credit score?
A credit score is proof of how well you’ve been paying your loans off. Therefore, it plays a key role that will help many lenders and financial institutions decide if your loan will be approved or disapproved. Just because you have a less-than-stellar credit score doesn’t mean your loan will be disapproved immediately. However, you might be charged with a higher interest rate for these companies to compensate themselves for accepting riskier customers.
What are no credit check loans?
A no credit check cash loan is typically described as a type of loan that doesn’t require the company to look deeper and inquire about your credit report during the application process. This means that it might ask for other requirements such as a bank account number or documents proving that you’re an Australian citizen but it won’t ask for your credit rating. For some, however, this could be a bit sketchy. Because there are both pros and cons to not having credit checks when you’re trying to apply for a loan.
What are the pros and cons of no credit check loans?
Before diving into no credit check cash loans, you should check out the pros and cons first:
1. You don’t need good credit.
The average score of a good credit rating is roughly around 600 above. Falling below 500 will give you a fair rating, which most credit companies won’t trust. If you’ve fallen short in terms of credit score and money on hand, then you should consider no credit check loans. This way, you can still get some sort of funds and resources for your essentials without having to resort to other undesirable methods.
2. They’re fast and instant.
When applying for no credit check loans, then you’ll definitely get your money in no time. Because the company won’t spend time investigating your credit history, then the second you walk into a typical storefront lender, it won’t take long before you’re walking out with the necessary funds in hand. This could be a huge bonus, especially if you want to pay rent on time or if you’re in a hurry to pay off some bills.
Now, here’s where it gets a little bit sketchy, especially considering the bad rep when it comes to no credit check loans:
1. They’re VERY expensive.
Of course, the lender not checking your credit score is a huge plus in your books but it counters it high interest rates. Not all lenders have the same rate as they can vary from loan to loan and customer to customer. But, it’s more expensive than your standard personal loans. This could hinder your ability to pay back what you’ve borrowed, as the interest rates could be too much to handle.
2. They won’t improve your credit score.
Because you already have a terrible credit score in the beginning, dipping your toes into no credit check cash loans will make it worse. The companies lending you the money in the first place won’t report or update your payment information to the credit bureaus, even if you’ve paid them off in time. Therefore, you won’t have anything to show that you DID pay your bills in a timely manner.
3. They could trap you in a cycle of debt.
Think about it. You’re in need of cash, you need to borrow money, you go to a no credit check lending company with high rates, you pay off your necessities but you also STILL need to pay off your existing debt now. It’s a never-ending cycle, one that you could easily get sucked in. So it’s important to know the dangers before diving into cash loans that don’t check for credit history.
Bad credit? No credit? Then don’t worry about it!
Lending companies offer bad credit loans to people who aren’t confident with their credit scores. It’s understandable. You can’t hide your credit score so you’re looking for lenders who won’t take it into consideration. In this case, many people will go to payday cash loans which basically grants them a loan but at the cost of high interest rates. The best option for people who don’t have good credit scores is to approach companies offering bad credit loans. These loans give them the benefit of the doubt and aren’t as expensive as payday loans. Plus, you can work out a repayment plan that works well with you.
At the end of the day, no credit check cash loans are a gamble. If you REALLY need the money now and you’re confident that you can pay it back on time, then there is no harm in applying for a loan. But if you’re still a bit hesitant, then maybe you should consider other options out there! You might not feel like you have an option but most lending companies are very understanding of your financial situation. Just approach one, speak to a financial advisor and you’ll be able to work out a plan that benefits both parties.