Company Name | Est. APR | Credit Check Required? | Loan Amount | Loan Term |
60MonthLoans | 19.09% to 69.5% | Soft only | $2,600 to $10,000 | 12 to 60 months |
OppLoans | 59% to 160% | Soft only | $500 to $4,000 | 6 to 36 months |
Oportun | 7.99% to 35.99% | Yes | $300 to $10,000 (up to $20,000 for secured loans) | 12 to 48 months |
Upstart | 5.35% to 35.99% | Yes | $1,000 to $50,000 | 36 or 60 months |
NetCredit | 34% to 155% | Yes | $1,000 to $10,000 | 12 to 60 months |
What Is a No Credit Check Loan?
A no credit check loan is any loan offered to a borrower by
a lender without the requirement of a hard credit inquiry. No credit check
loans often refer to predatory products such as payday loans and title loans.
However, in this guide, we focused our recommendations on no credit check
personal loans. A no credit check personal loan is an installment loan that is
typically unsecured and repaid in fixed monthly payments with interest.
Reasons to Get a No Credit Check Personal Loan
If you need money in an emergency and you can’t qualify for
other lenders based on your credit score, a no credit check loan may be your
only option. However, because no credit check loans are costly, you shouldn’t
use them for non-emergency large purchases, vacations, or weddings. Some
examples of situations in which you might need a no credit check personal loan
include:
- Car repairs
- Home repairs
- Appliance replacement
- Medical bills
- Rent or mortgage and utilities
- Car insurance premiums
- Emergency travel
How to Get a No Credit Check Personal Loan
While the process varies by lender, in general, you’ll go
through the following steps:
- Ensure you don’t qualify for a cheaper loan: Try
prequalifying with lenders such as Oportun and Upstart to see if you can get a
loan with a lower APR based on your credit score before you look for personal
loans with no credit check.
- Gather the necessary documents: You’ll need to provide your
social security number and identifying documents as well as verify your income.
You may also need to provide references.
- Apply with a no credit check lender: The two safest options
we reviewed for loans with no credit check are OppLoans and 60MonthLoans. Since
neither lender does a hard credit check, you can apply to both and compare
their offers. Avoid online payday loans and other short term loans with no
credit check.
- Sign your loan documents: Read the fine print so you
understand the terms. Select a repayment term you can afford. Then, sign and accept
your loan documents.
- Receive your funds: Most lenders can make funds available
within one business day.
Where to Get a No Credit Check Personal Loan
No credit check personal loans aren’t offered by many
lenders. Most loans without a credit check are online payday loans, which are
expensive and risky. It’s unlikely that a bank or credit union will offer you a
no credit check personal loan, so check with online lenders instead. The
following lenders offer no credit check personal loans with longer repayment
terms than payday loans:
- 60MonthLoans
- OppLoans
- Integra Credit
Alternatives to No Credit Check Personal Loans
- Payday Alternative Loans: Payday Alternative Loans (PALs)
are short-term, small dollar loans that come with a maximum APR of just 28%.
They’re offered by credit unions, which typically have membership requirements.
- Home Equity Loans: A home equity loan is easier to qualify
for than an unsecured personal loan because you offer the equity you’ve built
in your home as collateral. These loans come with low APRs, but they do require
a credit check, and it can take a while to get the funds.
- 401(k) Loans: 401(k) loans don’t require a credit check, and
though you must repay them with interest to avoid tax penalties, you’ll be
paying interest to yourself.
- Point-of-Sale Financing: If you need to make an emergency
purchase, such as a new refrigerator, many retailers now partner with Buy Now,
Pay Later or Point-of-Sale companies that allow you to pay later or over time.
Most of these options do not require a hard credit check.
- Bad Credit Lenders: Lenders like Oportun, Upstart, Avant,
NetCredit, OneMain Financial, and others offer loans to fair and poor credit
borrowers. While these lenders require a credit check, you may qualify even if
you have bad credit.
- Cash Advance Apps: Some cash advance apps allow you to get
an advance on your next paycheck. These apps don’t typically charge interest,
but instead make money from voluntary tips or membership fees.
How to Avoid No Credit Check Loan Scams
- Check to make sure the lender is registered in your state:
If the lender is not licensed to issue loans in your state, that’s a red flag.
- Ensure the lender has a physical address: Scammers may use a
P.O. box or not provide an address at all, so review the lender’s contact
information.
- Beware of promises of guaranteed approval: While loans are
available without a credit check, a legitimate no credit check lender will still
review information such as your income and outstanding debt. If a lender
promises to issue a loan regardless of your financial situation, that’s a red
flag.
- Never pay an advance fee to receive a loan: It’s illegal for
a telemarketer to demand payment prior to issuing a loan. Be especially wary of
scammers who request prepaid cards in exchange for issuing a loan.
- Make sure fees and APRs are transparently disclosed:
Legitimate lenders make their APRs, fees, and terms apparent online. If you
can’t find this information about a lender, you’re likely dealing with a scam
artist.
How to Improve Your Credit to Avoid Risky No Credit Check
Loans
If you can improve your credit score, you’ll be able to
qualify for loans with lower APRs, better terms, and fewer fees in the future.
Take the following steps to build healthy credit:
- Review your credit report and dispute any errors
- Always pay your bills on-time and in full
- Use a debt repayment strategy, such as the debt avalanche
method, to lower your credit utilization ratio
- If you have credit cards, try asking for a higher credit
limit to lower your credit utilization ratio
- Avoid too many hard inquiries. Only apply for credit if it’s
absolutely necessary.
- Avoid closing any old accounts
- Become an authorized user on a creditworthy friend or family
member’s credit card account, which will allow your score to benefit from their
credit health
- Try applying for a credit builder loan or secured credit
card
- Use available tools like Experian Go and Experian Boost
Conclusion
No credit check loans generally come with higher APRs and
less favorable terms than personal loans that require a credit check. It’s a
good idea to prequalify with a few bad credit online lenders before considering
a no credit check loan. But if you need a loan without a credit check, there
are a couple of options that won’t leave you buried in debt. Just make sure to
evaluate your budget and plan for repayment, or the high APRs could lead you to
default.
