No Credit Check Loans Guide

What Is a No Credit Check Loan?

A no credit check loan is a type of loan that does not require a hard inquiry into your credit report during the application process. That means the specifics of your credit history do not factor into approval for the loan. Loans with no credit check do not guarantee approval, though. Whether or not you qualify depends on other things, like income or collateral to secure the loan, instead.

No credit check loans are not the best option and should be avoided by most consumers. Even the “best” no credit check loans tend to charge extremely high interest rates and fees, and many also require the borrower to put up something of value, such as their next paycheck or their car’s title, in order to get the loan.

Best No Credit Check Loans

The best no credit check loans overall are from 60MonthLoans, OppLoans and Integra Credit. While loans from these lenders are quite expensive, they’re a reasonable alternative to predatory payday loans and auto title loans. That said, if you get a loan from one of these lenders, you should strive to pay it back as quickly as possible to avoid owing a lot of interest.

How to Get a No Credit Check Loan

1. Find a lender that offers no credit check loans.
   Popular lenders that have no credit check loans include 60MonthLoans, OppLoans and Integra Credit.
2. Get pre-qualified.
   Applying for a no credit check loan won’t hurt your credit score, but it’s still a good idea to check for pre-qualification because you’ll be able to estimate your rates before you apply.
3. Compare terms.
   You should take a look at each loan’s APR, fees, dollar amounts and payoff periods in order to pick the best offer.
4. Send in your application.
   Applying online is usually the quickest method, but you may be able to apply over the phone, too.
5. Wait for a decision.
   You could hear back nearly instantly, or after a few business days.
6. Get the money.
   Assuming you get approved, it usually takes one or two business days to get the money after approval.

You can learn more about how to get a no credit check loan on WalletHub.

Other Ways to Get No Credit Check Loans

Payday lender

Many payday lenders advertise having no credit check for approval. But these types of lenders are incredibly predatory. They give you a sum of money, usually $500 or less, which you must pay back using your next paycheck. But you must also pay large fees that are typically equivalent to a 400%+ APR.

So not only will you owe far more than is reasonable in finance charges, but your next paycheck will already have a big chunk taken out of it. Avoid payday loans at all costs.

Pawn shop

Pawn shops have come more into the public eye recently with the many reality TV shows based around them. When you “pawn” something valuable, the lender gives you 25% to 60% of its value in cash as a loan. The shop keeps that item but does not sell it for a specified period of time, usually several months.

If the owner of the item pays the loan back, along with monthly interest (2% to 25% or more, depending on the state), they get their item back. If not, the pawn shop can sell it.

Auto title lender

These lenders offer loans for which you have to use your auto title (the certificate that makes you the legal owner of a vehicle) as collateral. In return, the lender lets you borrow up to 25% to 50% of the value of the car, to be paid back in 15-30 days with a fee equal to as much as 25% of the amount you borrow. These loans are $100 to $5,500, on average (sometimes $10,000+), according to the Federal Trade Commission.

If you are unable to pay the loan back within the specified timeframe, the lender may “roll it over” into the next month. This gives you another month to pay it back, in return for another month’s worth of fees. Eventually, if you roll it over multiple times, the lender may take possession of your vehicle. Avoid these loans.

Loans from relatives/friends

A family member or friend doesn’t have the capability to perform a hard check of your credit. They may also be willing to give you a loan even if your credit is bad. However, it’s important to handle such a loan as professionally as you would one from a bank.

Scams

Sadly, some “no credit check loans” out there are just expensive scams. If they ask you to make any kind of upfront payment before you receive your loan, that’s a big warning sign. If they won’t disclose their fees, that’s also a red flag.

No Credit Check Loan Alternatives

Secured personal loans

Rather than trying to get a predatory loan from a sketchy lender that will charge you enormous interest rates, go with a secured personal loan from a well-established lender. Some major banks that offer secured personal loans include Wells Fargo, PNC, Fifth Third Bank and KeyBank. While the lender will check your credit, you should still be able to get approved with bad credit because you will have to put up collateral.

Applying with a cosigner

A cosigner is someone who takes responsibility for your loan. The lender uses that person’s credit and income to decide whether or not to approve the loan. And if you can’t afford payments along the way, the cosigner is on the hook to pay off the balance. If you can find someone with good credit and a steady income who is willing to cosign, then you should have no trouble getting approved for an unsecured loan.

Credit cards

People with poor credit have a few credit card options. The first is to open a secured credit card, which will give you the highest approval odds but won’t allow you to actually borrow any money. Or you could opt for an unsecured credit card for bad credit, which won’t require a deposit but will likely charge high fees. Lastly, you can become an authorized user on someone else’s credit card. That person may allow you to borrow from their credit line.

Final Thoughts

Before you consider any kind of no credit check loan, it’s a good idea to first make sure you really have no chance of getting a regular personal loan. Your odds may actually be better than you think, as there are plenty of personal loan providers that will consider people who have bad credit.

You can use WalletHub’s free personal loan pre-qualification tool to check your odds of approval with multiple lenders at once (and see your potential rates). Pre-qualification only uses a soft credit pull, so it will not affect your credit score at all.

Ask the Experts

To gain more insight about best no credit check loans, WalletHub posed the following questions to a panel of experts. Click on the experts below to view their bios and answers.

1. What should consumers who are interested in no-credit-check loans watch out for?
2. What is the biggest misconception people have about getting approved for a personal loan?
3. Who should consider a no-credit-check loan?
4. What alternatives should people who want a no-credit-check loan consider instead?

Ask the Experts

Anita Mukherjee
Associate Professor, Richard G. and Julie J. Diermeier Professorship in Business – Risk and Insurance Department, School of Business – University of Wisconsin-Madison
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Bud Nelson
MBA, Professor of Finance – Point Loma Nazarene University
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A. Seddik Meziani
Ph.D., Professor of Finance and ETF Consultant –Department of Accounting & Finance, Feliciano School of Business – Montclair State University
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Elisheva Stern
Ph.D., Visiting Assistant Professor of Business and Economics, Ursinus College
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Yi Shen
Ph.D., Assistant Professor of Finance, College of Business Administration – Winthrop University
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Bryan Tomlin
Associate Professor of Economics, California State University Channel Islands, School of Business & Economics
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More Experts