In Australia, all lenders must check that a loan is affordable before approving it – and this usually includes a credit check. While “no credit check” loans are often advertised, most reputable lenders will still look at your credit history as part of responsible lending rules.
However, this isn’t as big a worry as you might think. The upside of cash loan lenders is they’re more flexible and consider other factors besides credit score. Most are more concerned with your ability to repay the loan. This means that if you have regular income, you can still be approved, even if your credit score isn’t the best.
At Savvy, we help by matching borrowers of all credit types with lenders who are willing to give them a chance. While all the small loan lenders we work with may perform a credit check as part of assessing your application, they will also consider a range of other factors, meaning we may still be able to help if you’ve had credit issues in the past.
Why apply for a small loan with Savvy?
Do bad credit customers get a worse rate on cash loans?
Having bad credit doesn’t usually mean you’ll pay a higher rate for your small loan. That’s because cash loans in Australia come with fixed fees and capped interest rates set by law. While some lenders might offer lower rates for borrowers with good credit, in most cases everyone will have the same charges. Here’s how it works:
- For loans up to $2,000: lenders can charge a one-off establishment fee of up to 20% of the loan amount and a monthly fee of up to 4%, for loan terms between 16 days and 12 months.
- For loans between $2,001 and $5,000: the maximum establishment fee is $400, and the annual interest rate is capped at 48%, for terms between 16 days and 24 months.
This setup ensures that the cost of a small loan is predictable and transparent, so you know exactly how much you'll repay from the beginning.
Will my loan application take longer if I have bad credit?
No. Small loans are designed to be fast – and that’s the case even if your credit score isn’t ideal. While lenders may run a credit check on a cash loan, it’s just one part of the process and a poor credit history won’t usually slow things down. If you can show steady income and responsible spending, your application can be approved just as quickly as someone with a clean credit report.
With Savvy, you can get an outcome within minutes of applying. If approved, you may receive the funds on the same day – often within an hour.
To help speed up the process, make sure you:
- Have your ID, income and bank details ready
- Complete all sections of the application accurately
The process is 100% online, quick and simple, giving you fast access to funds when you need them most.
I have previous defaults – will this show up on my no credit check loan application?
Yes. Defaults remain on your credit report for five years and will show up if a lender checks your credit history.
That said, having a default doesn’t automatically disqualify you from getting a cash loan. Lenders will look at the type of default, how long ago it occurred and whether it’s been paid. For example, a paid default from a phone bill a few years ago may have less impact than an unpaid or recent loan default.
What matters most is whether you can demonstrate stable income and responsible financial habits since the default. If your income is consistent and your current spending is under control, many lenders may still be willing to approve your application.
However, if you are currently bankrupt or under a Part IX debt agreement, approval is highly unlikely. Most lenders will only consider your application once that arrangement has ended.
