Can I Apply for a Loan Without it Affecting my Credit Rating?

There are forms of finance out there that do not require you to undergo a credit check so in some instances, you can apply for a loan without it affecting your credit rating, it is just rare.

Option 1: Wage Advance or Pay Advance App

The first option is a wage advance or pay advance app, with a wage advance from an employer, you can access some funds out of your next pay without applying for a loan or having a credit check done.  This can be a suitable solution if the purpose of the funds is not being used for something ongoing or if it is a smaller once off payment, like a bill.  If you are going to need regular advances, some customers prefer to use pay advance apps.  Once you have been approved, apps like Beforepay allow the user access to a certain cash limit which they put into your account at your request and then debit repayments once you have been paid, like a loan.  They charge a set fee instead of interest and they advertise that they do not perform credit checks, if you pass their “customer assessment” you are able to use their service. The amount of money you can get out with these apps is generally lower than what you would be able to access with a loan, but as you make repayments, you can keep redrawing up to your individual limit. 

Option 2: NILS Loan

Another option for a loan that doesn’t perform a credit check, is a NILS loan. These are loans provided by charities such as St Vincent De Paul or the Salvation Army, where they perform a risk assessment and provide you finance without a credit check and without charging any interest.  These loans are assessable for anyone who falls into the classification of “low-income earner” or is receiving a centrelink benefit.  With a NILS loan you can borrow up to $2000 for essentials, like car repairs, appliances or to help cover the cost of goods and services to support your wellbeing or up to $3000 for housing related expenses such as bond.

Option 3: Borrowing from Family or Friends

One of the last options to receive finance without having a credit check is to borrow money off a family member or friend.  This option is probably the less desirable of them so far, but a family member or friend who can lend the money to you will not do a credit check.  If you are willing to approach someone you are close with to ask for a loan, they already know your character and may be able to lend the money to you without all the extra stress that can be put on you by a bank or financier.  Most do not like to approach close friends and family when they are in financial difficulty or need extra funds which is why this option will be the least popular.

Option 4: Approach a Loan Company

The final suggestion is to find a loan company that you trust and keep your loans with them, with many of our good long-term customers, we do not perform credit checks when they are refinancing which means that their credit files are not being affected for reborrowing with us. 

There are some loan companies out there that will offer higher interest rate loans for not doing a credit check, but they are difficult to come by, especially in Australia.  If you are looking for finance and don’t want to ruin your credit rating, the best option is to do your research and only apply with one or two lenders.  The more applications you make, the more enquiries you will have on your file, and this is what brings down your credit rating. 

If you have any questions about taking out a loan with our loan lending company, please contact Champion Loans. Alternatively, if you're ready to apply for a loan, you can start the loan application process here.