Are There No Credit Check Personal Loans?

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When you take out a personal loan, the process usually involves a credit check. If your credit is less-than-ideal, you may be worried about getting denied a loan. But what about personal loans that don't require a hard pull of your credit?

In the world of borrowing money, such a personal loan might sound as elusive and mythical as the Loch Ness Monster or Bigfoot. While they aren't as common, personal loans where the lender doesn't review your credit do indeed exist. Let's take a look at how these types of personal loans work, the advantages and downsides of no credit check loans, and how to shop for them.

What Is a No Credit Check Loan? 

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Typically, when you take out a personal loan, the lender will do a hard pull of your credit, which usually dings your credit score. Lenders check your credit to determine how risky it might be to offer you a loan, and to check the odds of you paying back your debt.

A no credit check loan does not require a hard pull of your credit. In turn, it won't hurt your credit score. And if you have trouble getting approved for a personal loan because of your poor score, a no credit check loan might seem like the only choice available. 

But there are several things to keep in mind when it comes to no credit check loans:

• Expect higher rates: Lenders often charge significantly higher interest rates for no credit check loans.
• Smaller loans: Personal loans that don't require a credit check are usually for smaller loan amounts—think a few thousand dollars or less.
• Short repayment period: They also have short repayment periods, which can make it harder for you to repay the loan. 

If you have less-than-stellar credit and have been denied a personal loan because of your credit situation, you might be tempted to consider such a loan. But it’s typically recommended that you steer clear of them. 

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How Does a No Credit Check Loan Work?

A no credit check loan works the same way as standard personal loans. It's an installment loan, meaning you're granted a lump sum upfront. You're on the hook for making monthly payments based on the repayment schedule. 

The amount you pay in interest depends on the rate offered. This rate depends on your creditworthiness—or how risky you seem to the lender—and includes factors such as your credit score, credit history, annual income, employment status, bank accounts, debt load, and more. While some no credit check loans may say they won't perform a hard pull, they'll most likely still do a soft pull to review your credit history in their review process. A soft pull does not affect your credit.

So where can you find these loans? Here are a few types of no credit check loans: 

• Secured credit cards. While not exactly a personal loan, a secured credit card is a type of credit card where you're required to foot a security deposit. Your credit limit is usually equal to your deposit. So if you secure the card with $250, then your limit is also $250. 
• Payday loans. These are a type of loan that doesn't require a credit check. However, these are considered predatory, with sky-high rates—we're talking as high as 400%. Some states set a cap on payday loan fees, while in others, they're banned altogether. 

Note that bank and credit union personal loans usually require a credit check. You most likely will find them offered by lenders that operate online but aren't financial institutions.

Pros & Cons of No Credit Check Loans

Now, let's look at the good, bad, and ugly sides of a loan that doesn't require a credit check. 

Pros 

• Won't impact your credit. Because a hard pull of your credit usually negatively dings your score, you won't have to worry about that with a no credit check loan. 
• Can qualify with no credit or poor credit. If you're new to the world of credit or have poor credit, then you'll have a better chance of getting approved for a loan. 
• Smaller loan amounts. These types of loans are typically available in smaller amounts, which can be an advantage if you're in a temporary financial pinch.

Cons

• High interest rates. The trade-off of a no credit check loan is that you're looking at extremely high interest rates. So while you might be able to qualify with a low credit score, it will cost you in interest fees over time. 
• Short repayment terms. Another downside is that there are shorter repayment terms. Personal loans usually have a repayment period of 12 to 60 months. No credit check loans usually have repayment terms that can be anywhere from a few weeks to only several months. With an accelerated payment schedule, the pressure's on to pay back that loan quickly.
• Could get caught in a debt trap cycle. Depending on your financial situation, high interest rates and short repayment terms mean you might feel your back is against the wall. As a result, you might need to constantly take on more debt, and get caught up in a vicious cycle. 
• Fewer lending options. Because lenders that don't require a credit check are few and far between, you won't have as many choices to pick from. 

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How to Shop for a No Credit Check Loan 

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A no credit check loan should be met with a healthy dose of caution. If you’ve mulled over the pros and cons of a no credit check loan and have considered the alternatives, here are the steps to take on how to find the right one for you.

• Look online. Typically no credit check personal loans aren’t offered by a bank or credit union. You might have a better chance finding such a lender through an online platform.
• Compare quotes. It’s always a good idea to do some comparison shopping. Aim to get quotes from at least three different lenders. The loan amounts should be roughly the same. That way, you can do a side-by-side glance. 
• Look beyond the basics. Beyond the rates and terms, see if there are any fees. Is there a prepayment penalty? Are you able to apply for a second loan as needed? Is the repayment period customizable? All are important things to know. 
• Talk to a customer service rep. If you have any lingering questions, reach out to the lender and have your questions answered. It’s also a good way to test out how responsible their customer service team is. 
• Avoid payday loans. As mentioned before, you should avoid payday loans at all costs. They’re known to be predatory, and can wreak havoc on your credit. 
• Look at other options. It’s a good idea to avoid no credit check loans, and turn toward other lending alternatives—which we’ll get into below. 

Best No Credit Check Personal Loans 

As we’ve discussed, personal loans that don’t require a credit check should best be avoided. If you are considering one, know that they usually come with extremely high fees and short repayment windows. So please proceed with caution, or consider a less-expensive alternative, such as a social lending circle.

Best for Quick Funding: Integra Credit

Integra Credit

Check Your Rate

• Loan Amounts$500 - $3,000
• Loan Terms6 - 24 months
• APR Range149% to 399%
• Minimum
  Credit ScoreNot disclosed More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Integra Credit welcomes borrowers with bad credit, but beware of the ultra-high APRs.

• Overview
• Pros & Cons

Overview

While Integra Credit offers high interest rates and late fees, depending on your state, you can get a loan for as little as $500. Once your application is approved, funds can drop into your account pretty quickly. These high-interest loans aren’t meant to be a long-term financial solution. If you decide to take out a loan, make sure you can manage the repayment.

Pros

• Small loan amounts available
• Can receive funding within the next business day
• No prepayment penalties
• Will work with bad credit borrowers

Cons

• High interest rates
• Late fees
• Not available in many states

Best for Longer Terms: 60 Month Loans

60 Month Loans

Check Your Rate

• Loan Amounts$2,600 - $10,000
• Loan Terms24 - 60 months
• APR Range19.00% - 35.83%
• Minimum
  Credit ScoreNot disclosed More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

60 Month Loans can approve borrowers without a hard credit check, making it accessible to those with less-than-stellar credit history.

• Overview
• Pros & Cons

Overview

Instead of a hard credit check, 60 Month Loans will ask that you provide bank statements. What customers particularly liked about this lender is that, as the name implies, loan repayment is available for up to five years. A downside is an origination fee, which is shaved off your loan disbursement.

Pros

• Speedy funding available
• No prepayment penalties
• Can borrow up to $10,000
• Credit check not required

Cons

• Only available in 19 states
• Origination fee (up to 5% of the loan amount)
• No co-signers

Best for a Social Lending Circle: Mission Asset Fund 

Mission Asset Fund

Check Your Rate

• Loan Amounts$300 - $2,400
• Loan TermsVaries
• APR Range0%
• Minimum
  Credit ScoreNone More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

• Overview
• Pros & Cons

Overview

As a social lending circle, Mission Asset Fund (MAF) pools funds from each borrower in the circle. Each group is usually made up of 6 to 12 people, and the average monthly payment is anywhere from $50 to $200. The loan amount can be anywhere from $300 to $2,400. The biggest benefit of a lending circle such as MAF is there’s no interest fees. Plus, these loans will help you build credit.

Pros

• Loan amount can be as little as $300 
• No interest fees or late fees 
• Build credit (payments are reported to credit bureaus) 

Cons

• Larger loan amounts usually not available
• Need to wait one’s turn to receive the funds 

Best for Responsive Customer Service: OppLoans

OppLoans

Check Your Rate

• Loan Amounts$500 - $4,000
• Loan Terms9 - 18 months
• APR Range59% - 160%
• Minimum
  Credit ScoreNone More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

OppLoans is known for personal loans with top-rated customer service, same-day funding, and no origination fees. Only soft credit check is done.

• Overview
• Pros & Cons

Overview

As an online lender that only does a soft pull of your credit, OppLoans will look at lending criteria outside your credit score, such as your income, employment status, financial history and bank statements. While you might be able to get approved for a loan with poor credit, note that you’ll be paying very high interest fees. OppLoans stands out because of its exceptional customer service. Reps are available seven days a week.

Pros

• Potentially fast funding (as soon as the same business day) 
• No prepayment penalties 
• No origination fees
• Loans up to $4,000 
• Only soft credit check
• Will work with bad credit borrowers

Cons

• High interest rates 
• Only online application available 
• Need to receive paychecks via direct deposit

Alternatives to Consider  

If a no credit check personal loan is not the right fit for you, here are some alternatives to consider.

Rebuild Your Credit 

If a thin credit profile or poor credit is blocking you from getting approved for a personal loan, work on boosting your credit. Often whatever resulted in your score taking a dive is the path to rebuilding it. 

For instance, if your credit score took a toll because you were late on your payments, aim to stay on top of them. Or if your score is low because you’re new to the world of credit, more time in the “credit game” and making timely payments will help bump up your score. 

Rebuilding your credit will help you in the long run, and will net you the most favorable terms and rates. 

Get a Co-Signer 

A co-signer or co-borrower with excellent credit can up the odds of your getting approved for a loan. If you cannot keep up with payments, the co-signer or co-borrower will be on the hook for making those payments.

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0% Intro APR Credit Cards

Some credit cards offer 0% intro APR promotional periods where you pay no interest on purchases during that period of time. If you need a smaller amount and can repay the balance within that timeframe, 0% intro APR cards can be a better option than getting a loan.

Payday Alternative Loans

A payday alternative loan (PAL) is a type of loan that credit unions created and issued so you don’t have to resort to predatory lending. If you’re a member of a credit union, you might be able to get a PAL, which usually comes with smaller loan amounts and longer repayment periods.

Social Lending Circles

A social lending circle is a tried-and-true concept practiced in other countries and cultures for centuries. Here’s how it works: There are usually 6 to 12 members in a lending circle. Each member of the circle contributes an agreed-upon set amount into the lending pool. For instance $50 or $100 a person. Then, each month, a member has access to the pool of funds. There are no interest or fees. 

Secured Loans

Secured loans require you to offer collateral to back up your loan. In case you default, the lender reserves the right to seize that asset. Because you’re offering this asset, lenders may be more willing to work with you even if your credit score isn't the highest.

Lenders That Specialize in Poor Credit Loans 

A handful of lenders offer bad credit loans. They might have less stringent credit requirements or will give more weight to other lending criteria—such as your education or annual income.

Are No Credit Check Loans a Good Idea?

While no credit check loans are for the most part legit, they shouldn't be your first choice. That’s because there are plenty of lenders that offer personal loans if you have some blemishes on your credit file. Plus, it’s a good idea to take steps to build your credit. That will help you the most in the long run.