No Paperwork Loans for Bad Credit

Getting a loan used to be an ordeal due to the numerous papers and documents required. 

While the paperwork may have been bearable for someone who’s guaranteed to get the loan, what about people with bad credit? They would’ve had to go through all that, and for what? A slim to no chance of getting the loan? 

Thanks to no paperwork loans, this is all a thing of the past. Whether you’ve got good or bad credit, you’ll be able to take out a loan, all from the comfort of your home. So, if you’re ready to learn more about no paperwork loans for bad credit, let’s get this show on the road!

What this article covers:

What Are No Paperwork Loans?

As the name implies, no paperwork loans allow you to borrow money by submitting zero to little papers and supporting documents. That’s why you’ll commonly hear no paperwork loans being referred to as no-doc or low-doc loans. 

Unbelievably, to take out a no paperwork loan, all you need to do is fill out an online application. No visiting lender offices, filling out countless paperwork, and submitting physical copies of documents. Simply fill out the application, upload the relevant documents from your device, and voila!

no paperwork loans bad credit

Who Would Benefit From a No Paperwork Loan?

Honestly, anyone will benefit from no paperwork loans. They’re simple, fast, and require no effort. 

Nevertheless, a certain category of people will benefit the most from this loan. Typically, these are the ones who can’t provide loan providers with proof of regular income, aka self-employed individuals.

Freelancers, small business owners, part-timers, and contractors usually have a hard time proving that they make a stable income. They don’t get a payslip or have letters of employment. As such, many lenders tend to be wary of them. Not because they may be earning too little but because their income is irregular. 

That being so, no paperwork loans are a great option for such a group of people. They’ll eliminate the whole issue of proof of income, allowing freelancers and business owners to get a loan easily. 

But can people with bad credit apply for a no paperwork loan?

Does Bad Credit Prevent You From Getting a No Paperwork Loan?

Previously, no lender in their right mind would accept a bad credit loan with no guarantor. Thankfully, though, things have changed since then.

Now, even with a bad credit score, you can still take out a no paperwork loan. The trick lies in finding a lender who deals with bad credit clients, and we here at Orange Loans will do just that for you.

Once we get you in touch with the right lender, all you need to do is convince them that you can afford the loan. If you do that, you’ll get the loan at once, no questions asked. 

Now, we know what you’re thinking, “Why would a lender take you on if you’ve got a bad credit score?” Won’t they be risking their money on someone who’s supposedly unreliable?

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Well, they’re taking a risk, and that’s why no paperwork loans for bad credit clients tend to be more expensive than regular personal loans. They’ll either have higher fees, interest rates, or both, so keep this in mind when asking for such a loan. 

Still, don’t let the extra fees scare you too much. They won’t be anything too ridiculous. They’ll just be slightly higher than average. 

So, even if you have bad credit, don’t hesitate to apply for a no paperwork loan. 

How Much Can You Borrow With a No Paperwork Loan for Bad Credit?

Typically, no paperwork loans for bad credit don’t exceed the $2000 mark. Though some lenders can go as high as $5000, most stay within the $100-$2000 range. 

Why so little, you ask? This is all a part of the lender’s risk management strategy. 

Say you borrowed $2000 and you defaulted on the loan. Sure, your lender will have lost some money, but it won’t be too big of a hit. Add the fees you paid at the beginning, and your lender will come out none the worse for wear. 

This is exactly why most direct lender bad credit loan providers don’t care to perform a credit check on no paperwork loan applicants. So, even if you’ve got a bad or insufficient credit history, a no paperwork loan will be great for you. 

What Types of Loans are No Paperwork Loans? 

Generally, no paperwork loans are just another term for payday loans.

These are small-sized unsecured loans that don’t require a credit check. Typically, the monthly instalment date is set according to the borrower’s payday, hence the name. 

The thing to keep in mind with payday loans is that they’re rarely reported to credit bureaus. So, even if you make all your payments on time and repay the loan in full, a payday loan won’t help you improve your credit score.

While this is regrettable, you can’t deny how useful payday loans are. They’re simple, fast, and extremely easy to obtain. So, don’t be too disappointed about the unaffected credit score and enjoy the benefits of payday loans. 

Note: Payday loans are sometimes called instant cash loans, fast cash loans, urgent cash loans, etc. 

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When Can You Expect to Get the Loan Money?

Pretty quickly. 

With regular loans, you need to wait a while for the lender to review your application and run a credit check on you. At best, you’ll be looking at a couple of days, and at worst, a few weeks. 

Thankfully, that’s not the case with no paperwork loans.

Since your loan provider doesn’t care about your credit score, your loan can be processed in as little as a few hours. 

Granted, the turnaround time can vary slightly from one lender to another. This will mostly depend on how busy they are. Nevertheless, it generally won’t take you more than a day or so to get the money. 

Benefits and Drawbacks of No Paperwork Loans

Just like every other loan, a no paperwork loan comes with its own set of advantages and disadvantages. So, let’s see what you’ll be working with, shall we? 

Benefits: 

  • Easy and free application process 
  • Minimal requirements and documents 
  • Most lenders don’t perform credit checks
  • Almost guaranteed approval rate
  • Clients with bad or insufficient credit can apply 
  • Self-employed people can apply
  • Extremely fast turnaround time 

Drawbacks:

  • Slightly more expensive than other loans 
  • May not help in improving your credit score 

drawbacks of no paperwork loans

Eligibility Criteria for a No Paperwork Loan

To get an instant guaranteed cash loan bad credit in Australia, you need to:

  • Be a citizen or permanent resident of Australia
  • Be at least 18 years of age
  • Have had a job/income for the past three months
  • Have an active bank account, email, and phone number

How Much Does a No Paperwork Loan Cost? 

Depending on how much money you borrow, the total cost of your loan will vary. 

As stated by the Australian Securities & Investments Commission (ASIC), all small loans don’t come with an interest rate. So, if your loan is $2000 or less, you’ll only be required to pay an establishment fee and a monthly fee. 

The maximum a lender can charge is a 20% establishment fee and a 4% monthly fee. So, if you’ve borrowed $1000 to be repaid in four months, you’ll end up paying:

  • Establishment fee: $200
  • Monthly fee: $160 ($40/month)
  • Total: $1360

But what about larger loans nearer to the $5000 mark? Like $5000 loans for people with bad credit?

These loans will have an interest rate and, most times, an establishment fee as well. Typically, the interest rate will be around 5.99% per annum, and the establishment fee will be from $100 to $700. 

Note: As previously mentioned, expect your interest rate to be slightly higher than usual if you’ve got bad credit. 

no paperwork loans

What to Look Out for When Getting a No Paperwork Loan

Here are a few things you should consider when shopping around for a no paperwork loan provider:

Fees and Interest Rates 

If you’re borrowing above $2000, make sure to compare your interest rate with those of other lenders. While no paperwork loans have higher-than-normal rates, some lenders will go overboard and ask for too much. 

That’s why you should always ask around before settling on a lender. If you discover that your lender is charging you too much, try to negotiate or simply switch to another loan provider. 

Another thing you should consider before signing the contract is whether your loan has a fixed or variable rate. It’s generally better to get a fixed-rate loan. However, if the market interest rates are low, you may be able to save more with a variable-rate loan. 

Finally, learn the comparison rate of your loan, aka, the true cost of the loan. This includes your interest rate in addition to establishment fees, ongoing account-keeping fees, monthly charges, etc. 

Loan Terms

Fortunately, most lenders allow you to choose when you’d like to repay your loan. 

Typically, no paperwork loans have to be repaid in no more than 52 weeks. As long as you repay your loan before then, you’ll be golden. 

Still, keep in mind that the longer your loan term, the more interest will accumulate and the more you’ll eventually have to pay. As such, many people tend to choose short loan terms. 

However, that’s not always the wisest choice. 

You see, the shorter your loan term, the more your monthly payment will be, and vice versa. So, if your monthly income isn’t enough to cover your monthly payment, you’ll be better off with a longer loan term. That way, you can avoid late payment fees, which will ultimately cost more than the extra interest. 

So, be practical when choosing your loan terms and if you ever feel lost, be sure to discuss the matter with your lender.

what are no paperwork loans

Repayment Schedule

When choosing your repayment schedule, make sure it matches up with your income schedule and amount. If a weekly payment doesn’t suit your schedule, choose a fortnightly or monthly payment. 

Pick what makes you the most comfortable, and if you can, choose a shorter loan term to cut back on fees and interest. 

Oh, and don’t forget to find out if you’ll be charged for repaying your loan early. 

In case you didn’t know, money lenders typically set their minimum loan term at 12 weeks. That’s because they need to rake in some profit in the form of interest. 

As such, some loan providers may make you pay a fee if you repay the loan before the specified time is up. They see it as compensation for the lost interest. 

However, that’s not always the case. In fact, the majority of lenders won’t make you pay an early repayment fee, especially with bad credit loans. 

Still, make sure to know the policies of your lender before proceeding with early repayment. If there’s a fee and it’s more than the remaining interest, it’ll be better to wait out the remainder of your loan term.

Can Someone Without Income Apply for a No Paperwork Loan?

If you’re unemployed with no source of income, you won’t be able to get a loan. If you don’t have a way to pay back the loan, why would a lender give you the time of day? 

Still, this doesn’t mean you need to have a job to get a loan. You just need to have an income. 

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This means that Centrelink applicants can still get a no paperwork loan, as well as clients receiving a pension, child support, trust proceeds, rental income, etc. As long as the lenders find you able and willing to repay the loan, they won’t hesitate to give you the money. 

Nevertheless, job or no job, make sure to have a plan for repaying the loan. Compare your income with your expenses and see if repaying a loan fits within your budget. If you’re already struggling to pay your regular bills, a loan may not be the best idea for you.

Alternatives to No Paperwork Loans 

If you’re unable to afford a no paperwork loan, here are a couple of things you can try to get some extra money.

No-Interest Loan 

As the name suggests, this loan has no interest, fees, or hidden charges. To top it off, the loan providers don’t even look at your credit score.

This is all thanks to the “No Interest Loans Scheme” in Australia. With it, you can borrow up to $1500, and all you need to do is pay back what you borrowed over 12-18 months. 

However, there are a few conditions for the loan. First off, the loan needs to be used for essential purposes, such as household items, educational materials, medical/dental services, and car repairs. 

Secondly, you need to either have a Health Care Card, a Pensioner Concession Card, or make an income of $45,000 per year after tax. If you don’t meet any of these conditions, you won’t be able to get a no-interest loan. 

Centrelink Advance Payment

If you’re on Centrelink and can’t find yourself a lender, you can apply for an advance payment.

paperwork loan credits

Simply go on the Service Australia website and put in your application. You’ll receive your regular Centrelink payment in advance, just like that. There are no credit checks, fees, interest rates, or repayments. 

Just keep in mind that you’ll be lacking funds for the coming weeks. So, you’ll probably need to work a few extra shifts or take a second job to cover your regular expenses. 

How to Apply for a No Paperwork Loan for Bad Credit 

Thankfully, it’s easy to apply for a no paperwork loan. 

All you need to do is fill out an online application. In this application, you’ll state how much money you need and your preferred loan terms. 

Once the lender reviews your application, you’ll receive a call from them. This is mostly to confirm your information and make sure everything’s in order. If the call goes well, the lender will send you a contract to sign, and once you do, you’ll get your money almost immediately. 

Information and Documents Needed for a No Paperwork Loan Application

Most loan applications require that you share the following:

  • A copy of your ID
  • Certain personal details, such as your email, address, and phone number
  • Employment details, if present 
  • 90-day history of your bank transactions

Note: Non-traditionally employed individuals will need to show the lender their source of income. That includes things like dividends, allowances, government benefits, rental income, trust proceeds, child support, free-lance earnings, etc. 

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FAQs

What Can You Use a No Paperwork Loan for?

You can use it for everything and anything. Use it for car repairs, medical expenses, travel expenses, home renovations, rental bonds, your own wedding, or whatever you want. 

What’s an Establishment Fee?

When your loan is established, the lender charges you what’s called a fee. This fee covers things like credit assurance, assessment, and the verification services employed to process your application. Establishment fees need to be paid upfront, and they aren’t refundable. 

How Do You Know You’re Dealing With a Legitimate Lender?

Thankfully, all lenders on Orange Loans are reputable and trustworthy. Still, it’s always best to conduct a little online search on your lender before closing the deal. Make sure they have an Australian Credit License and good all-around reviews from previous clients. Only apply for online payday loans with instant approval from direct lenders and no credit check that are reputable.

What’s the Role of Orange Loans in No Paperwork Loans? 

Quite simply, Orange Loans is responsible for putting you in touch with the right loan provider. Whether you need no paperwork loans, instant cash loans with no brokers, bad credit loans, personal loans, or even car repair loans, we’ll connect you to a lender willing to work with you. 

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Conclusion 

If you’re looking to get a loan with no fuss, no muss, a no paperwork loan for bad credit will be perfect for you. That’s doubly so if you’re non-traditionally employed and unable to provide proof of regular income. 

Just keep in mind that bad credit clients may have higher-than-average interest rates. Of course, that’s only if you’re borrowing more than $2000. If that’s not the case, then you’ll only pay the establishment and monthly fees like any other person. 

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