Don’t have the desired credit history? No worries! In these loans, instead of checking your FICO score, lenders verify other personal statements. These can be your bank statements, monthly or yearly income, and other indicators showing how capable you are of paying back the loan.
No credit check loans are an ideal option for people who need capital immediately. They’re also there for those who don’t have the credit history that a lot of conventional lenders focus on.
But what are the pros and cons of a no credit check loan? Are they worth your hard-earned money? Are they safe? Do they come with very high-interest rates? If they are safe, then which ones are the best ones?
These are all very valid concerns to have. With all the infamous stories of loans going wrong or putting people in years and years of debt, it’s understandable why anyone would be cautious before getting into it. To make it easier for you, we have compiled a list of the 5 best no-credit-check loans, with in-depth analysis, to help put your mind at ease.
Without any further ado, here are the top no credit check loans of 2021!
Top 5 Best No Credit Check Loans Lenders With Guaranteed Instant Approval:
- Money Mutual – Overall Best No Credit Check Loans
- Bad credit loan – Best Loan For Low Credit Score
- Cash USA– Best Personal Loan Provider for Small Amounts
- Personal Loan– Best For Emergency Loans
- Credit Loan– Best For Loan with Bad Credit History
#1.Money Mutual – Overall Best No Credit Check Loans
Money Mutual is an online marketplace that acts as a bridge between the individual and the lender. It does this by providing an online marketplace for users, through which it connects people in need of debt to potential lenders.
Money Mutual has some criteria that users need to meet before they can apply for a loan. These requirements are:
- The user must be at least 18 years of age.
- They must make $800 a month; this can be from any source of income that lenders can verify.
- Finally, they must possess a checking account.
There is no cost to finding a lender on the online marketplace. Money Mutual provides its users with a network of 60+ lenders. The process is also very fast and simple. You only need to sign a basic few forms on the website, and the website will then work on connecting you with a lender appropriate to your case.
Users can get connected to a lender as quickly as 24 hours. However, it is important to note that while the site doesn’t incur any costs, the lenders they connect you with may have terms and costs of their own.
Money Mutual offers an assortment of loans. These are also viable if you have bad credit. The types of loans available at Money Mutual are:
- Payday Loans
These are loans collected when the individual gets their income at the end of the month. However, they typically carry very high-interest rates with them, so you should be careful before signing up for one.
This is an umbrella term for multiple kinds of loans, but credit card cash advances are the most popular ones. This is because credit card companies offer you the cash you can access at an ATM by putting your credit card in.
However, these usually come with high-interest rates, typical of many loans, and there is a limit – usually a low one – to how much money can be accessed.
- Installment Loans
These are loans that are paid off in sections or installments over an agreed-upon period. The borrower also pays off the interest on the loans with each installment. These may come with higher interest rates, and missing any installment can badly reflect one’s credit score. For these reasons, borrowers should think it over before they go for one.
The regular amount that gets approved is anywhere from $2.50 to $2,500. However, lenders have their own sets of terms and conditions that borrowers must work with, so each situation is individualistic.
Despite being part of the Online Lenders Alliance, there have been bad reviews of Money Mutual. These are usually about connecting borrowers with lenders that charge illegal interest rates or bad customer service.
You can read some of these reviews on Consumer Affair.
Moreover, their services are not available in Connecticut and New York; however, they are available in most other states.
#2. BadCreditLoans – Best Loan For Low Credit Score
Bad Credit Loans is an online platform that connects individuals with its vast network of lenders. They do not offer money or personal loans, but with a simple sign-up, they can find you a lender that’s willing to accept your case.
There are some familiar requirements, which are:
- You must be at least 18 years old.
- You must provide proof of citizenship, a Social Security Number, and your legal residency.
- Whether a paycheck or social security benefits, you must provide your regular income and where you get it from.
- You’ll also be asked to provide your bank account and a routing number.
Based on the information borrowers provide, the algorithm at BadCreditLoans will connect them to a lender willing to accept their case and provide them with a loan
Borrowers can request between $500 to $10,000 in terms of loans. There is no cost for their services. However, the website does inform you that lenders may have their own sets of terms and costs, which BadCreditLoans is not responsible for.
The types of loans available at Bad Credit Loans are:
- Personal Loans: These max at $5,000. These are loans that can be used for various personal loans and aren’t tied to a specific purpose.
- Business Loans: These loans have a specific purpose; they’re for business and can only be used on business-related things. Interest rates can vary but typically are high.
- Auto Loans: Auto loans are specifically issued to borrowers for vehicle purchases. They’re paid off in monthly installments and typically charge a sizable amount of interest.
- Student Loans: These loans are designed to assist students in paying for their education, typically offered for university-level education.
- Mortgages: These are loans used to buy homes or property, and the home is the collateral in case of failure to repay the debt.
- Debt Consolidation Loans: This kind of loan fuses multiple loans into one, single new loan. These loans are paid in agreed-upon, fixed monthly payments and tend to have a lower interest rate than the individual loans by themselves.
The APR with BadCreditLoans is typically between 5.99% and 35.99%. However, BadCreditLoans makes it a point that the actual APR may differ from lender to lender.
All in all, BadCreditLoans is a no-cost middle-man that connects users to lenders based on their situation. It offers a vast variety of loans, and there are also unsecured loan options available.
It does most of the heavy lifting for borrowers by finding lenders, and it works with individuals who have bad credit history.
However, the APR for people with bad credit scores can be high, and BadCreditLoans themselves don’t work on sealing the deal.
#3. CashUSA – Best Personal Loan Provider for Small Amounts
If an online marketplace that’s good for smaller loans and is willing to work with any credit type is what you’re looking for, then CashUSA is a good bet.
There are some standard requirements, which you’ll find at most online marketplaces, these are:
- Being 18 years of age
- Proof of Citizenship
- A monthly income of $1,000
- A checking bank account
Borrowers only have to fill out one small application form. The details provided here will then be used to assess your case. Once this is done, your loan request will be sent out to CashUSA’s network of lenders, and it will do the legwork to connect you with a lender that matches your case.
The information CashUSA asks is things that prove your monthly income and your capability to repay loans. These can be details like your job when you get paid, monthly gross income, and other details like if you own a car or home and how long you’ve been employed. These details help in finding a lender perfect for you.
CashUSA makes it clear that while it offers the standard rate of 5.99%-35.99 APR, the rate, terms, fees, and other details may differ when it comes to the actual lender. CashUSA isn’t responsible for this.
CashUSA is known for its convenience. It saves borrowers a lot of time by doing the work for them. In addition, all the payments can be made online, and the lenders available in their network allow you to make auto-payments. This can help avoid missing payments, which reflect badly on your credit history.
CashUSA is also highly regarded for the security it provides customers. It emphasizes reading all contracts before signing anything. CashUSA also provides financial education tools for borrowers, so they don’t make any deals without the proper knowledge.
The variety of loans is also decent at CashUSA. It offers borrowers:
- Debt Consolidation
- Auto Repair
- Home-based loans
- Medical loans
- Personal Loans
Most of these purposes are covered within the $10,000 limit at CashUSA.
For small loans that might be for that new car you’ve been eyeing, a home renovation, or medical bills, CashUSA is one of the best places to go. It has garnered good reviews on websites like review42.com, and it has a million monthly users.
#4. Personal Loans – Best For Emergency Loans
Personal Loans is another online marketplace that acts as a medium between the borrower and the lender. The loan amounts offered on this website started from $1,000 and went up to $35,000. This makes it suitable for any loan, whether it’s a renovation, a car, a home, or something bigger. The minimum APR is 5.99%, whereas the maximum rate is 35.99%, which is an industry standard.
As with all other marketplaces, they only act as middle-man and cannot control the interest rates, APR, or terms and conditions set by lenders. Again, this is something borrowers must judge for themselves and proceed forward accordingly.
The process here is similar to the ones you’ve seen so far. First, a simple application must be filled, usually asking for your bank details, bank statements, monthly income, and the like. After this, the website will run your information through its network of lenders. An appropriate lender will then be matched with your case. However, Personal Loans is not involved with the loan process, so issues with the lender or the terms and agreements are not the website’s responsibility.
Personal Loans offers three types of personal loans:
- Personal installment loans
- Bank Personal loans.
They require you to be 18 years of age, possess an SSN, and be a legal resident of the USA.
Due to the speed at which loans can be made available to borrowers, this online marketplace is best for people who need fast loans without any collateral.
#5. CreditLoan – Best For Loan with Bad Credit History
Credit loans are an online marketplace that connects borrowers with lenders and has been functional since 1998. This makes it one of the oldest websites offering this service. With age comes experience, and that can be very reassuring in matters like debt. It has helped more than 750,000+ consumers get unsecured loans, often with manageable interest rates.
What separates this platform from the rest on this list is that it has two lending networks:
- One for borrowers with a bad or below-average credit score.
- One for borrowers with a good or above-average credit score.
This helps connect borrowers with the right kind of lender for their case since their information will only be forwarded to lenders dealing with a specific credit score.
The website can be a little misleading. For example, it states that you can get funding from $250 to $40,000 – which is quite a large amount. However, for people with poor credit scores, most lenders max out at around $5,000.
Like Money Mutual, they do not offer their services in New York and Connecticut but are available everywhere else.
However, the lenders on their network may do a soft credit pull of your credit report to see if you’re eligible for loans. However, these credit pulls don’t show up on your credit report, so borrowers shouldn’t feel worried.
To be eligible for this website’s services, you must be over 18, have a bank account, have a consistent monthly income, and not have an active bankruptcy case.
Overall, the pros of this website are that it’s fast in what it does; within minutes, borrowers can receive emails from potential lenders. In addition, bad credit scores are not an issue here, and people looking for a small loan will find this right up their alley.
While they’ve maintained an A+ rating from the BBB, there are contrasting reviews all over the internet. These usually have to do with miscommunication, whether that’s interest rates, the cost of credit, or origination fees.
What To Look For No Credit Check Loans
Now that we’ve established some of the best places to go for a no-credit-check loan, it’s time to talk about some general things to look out for when applying for this kind of loan.
The Amount of Money You Need
Before opting for a no-credit-check loan, you should see how much money you need and the alternatives to acquire that amount.
If the amount you need is small, such as a $500-$1,000 loan, it may be wiser to seek alternatives or ask family and friends rather than end up paying more than you borrowed due to high-interest rates. If you need a larger loan for, let’s say, a renovation, it may be wiser to save up instead simply.
This is something borrowers should keep an eye for. Repayment terms include things like interest rates, the period over which you’ll pay it back, and the rate of the installments. The length of your loan impacts the interest rate. Most lenders offer between six months to 6+ years. In a standard case, borrowers pay back in monthly installments, so reviewing these is imperative as bad terms can leave you in a tighter spot at the end of each month.
If you’re applying for no credit check loans, you likely have a credit report or score you don’t want lenders and banks to pull up from the 3 bureaus. People with good credit scores usually get the lowest interest rates. Therefore, if you have a bad score, it’s wise to give the interest rate a once-over and see if it’s realistic for you to pay back. The interest rate also varies from lender to lender, and a higher interest rate usually causes issues for people when it comes to loans.
Time Frame for Repayment
The period over which you choose to repay your loan is also an important factor. This affects your interest rate, chiefly, and for that reason alone, it’s a crucial part of loans to consider. If you opt to pay it over the years, your monthly installment will likely be cheaper but may have a higher interest rate and vice versa.
However, you also don’t want to be spending half your paycheck or most of it on repaying debt; it’s wise to keep the amount you spend on the monthly installments to a quarter of your monthly income.
Annual Percentage Rate
APR and interest rate are not the same – as APR can also include other fees like origination fees. These are usually not that steep and are typically between 0.5-1%, but can be higher, such as 5-10%, as they vary from lender to lender. These may be negotiable but are best to avoid if possible.
What’s Your Credit Score?
Your credit score is a crucial aspect to look into before going for no credit check loans. However, since they’re doing you the favor of not pulling up your credit report, there’s usually a catch. People with poor credit scores usually are victims of very high-interest rates or debt traps. As such, you should see the state of your credit report and see what you can do to improve it before applying for any loan.
It’s also a good idea to see if any banks can work with your credit report before you opt for something like this. You may find a better deal with your credit report than with a no-credit-check-loan.
- Speed of the Loan
One thing consistent with all the websites mentioned on this list is that they usually deliver you, lenders, quite fast. You should look out for how urgently you need the capital and go for a marketplace or lender appropriately. You may get results the very same night, or it may take a while longer. However, the websites mentioned in this article deliver results quite quickly, as most reviews speak about how they were matched with appropriate lenders in a day or two at best.
- How A Personal Loan May Affect Your Credit Score
A personal loan comes into installment credit. The more kinds of credit you have on your credit report, the stronger it will be. Although these kinds of loans may not boost your score by a noticeable amount, any improvement to an already bad credit score does help. Yet, on the other hand, a strong credit report can be obtained in several ways, and taking debts with high-interest rates for no reason is senseless.
How to Get No Credit Check Loans
- Credit Score
Even with no credit check loans, lenders will likely do a soft pull on your credit score. Although this won’t affect your credit score or show up on your report, keeping your credit report and score as favorable as possible is still important. All lenders will do some kind of credit check to verify your ability to pay back the loan. If you clean up your credit report or do what you can to improve it, you have a higher chance of getting the best no credit check loans.
However, if you cannot do anything about your credit report, you can still get good deals if you’ve had a pattern of good financial habits. These can be things like paying bills on time.
Your income is a way for lenders to assess how capable you are of repaying a loan. For example, if you’re working as a pharmacist or sales manager, and your monthly gross income is stable and high, you’ll be much more likely to receive a loan. When your credit report isn’t checked, your bank statements and monthly incomes are usually assessed to verify your creditworthiness.
If the lender sees you as financially stable, you’re a lot more likely to be granted a personal loan. Therefore, it’s important to keep your bank statements favorable to have a better chance of being granted loans.
If you, however, don’t have a stable monthly income or aren’t deemed capable enough to repay, you can opt for a cosigner. This is when you have a second person deemed creditworthy to apply for the loan with you. They act as your guarantor. This can help a lot if you need urgent cash and cannot apply for loans. However, it is important to note that not every lender accepts cosigners, and it’s typically not a facility most lenders offer.
Based on all the above information, it’s important to filter out what loans you’re eligible for and what loans you aren’t eligible for. For example, if you’re looking for a lender that accepts cosigners, lenders that don’t are immediately out the window for you. The websites mentioned thus far have you fill out short forms and applications to check your eligibility. It’s also very important to read the terms and conditions and fine print before you sign anything to ensure that you don’t fall into any legal traps or unfavorable situations.
Complete a Full Application
Once you’ve checked out what kind of loan you want, your credit score, your eligibility, and the rest, it’s time to go forward with a lender and complete the application.
These applications typically require your bank information, number, address, bank statement, details about your job and income. However, each lender has a different application, even if most are similar. Lenders typically give you a short window of time to fill out these applications.
Think about the lender, their terms and conditions, and your situation thoroughly before signing any application. It should be an informative easy to read the section about the process of getting a loan.
Alternative Of Online Loans For Bad Credit
- Short-Term Loans
Short-Term Loans are good for when you need cash or capital immediately. Whether this is for personal reasons or to just improve your cash flow as a business, these loans are a good option due to their availability. They usually have a lower credit limit than alternatives from a bank, but they are still enough to ease urgent financial troubles. These types of loans also have a very short repayment period, usually from 6 to 18 months. If you manage to do well on repayment, it can also increase your chances for a long-term loan and help with credit.
Overdrafts allow you to go over the amount you have in your bank account. These are similar to short-term loans, and you may get approved depending on your credit report and score.
These overdrafts can come with a cost, but that varies from bank to bank. They do, however, have a fixed APR rate for all overdrafts. In addition, these don’t come with repayment plans and can be expensive to pay back. For these reasons, they should be viewed as a last resort or a one-time debt rather than something you continuously rely on.
- Credit Builder Cards
A credit builder credit card is exclusively for those who need to improve their credit history or report. If you’re looking for a loans with no credit, this probably applies to you. However, they tend to have higher APR rates. This means you’ll pay higher amounts of interest and may pay other fees as well. Managing a credit builder card properly can help repair or raise your credit score. To aid in this, it’s wise to stay relatively beneath your credit limit. Once you apply for one and get approved, the lenders will review your credit and see if they can approve you.
- Pawn Shop Loans
In these types of loans, a pawn shop owner temporarily possesses your item after assessing its value. Once they review the item, they offer you a loan. After this, you pay the loan off bit by bit, eventually taking your item back. This is a useful option for those in dire need of cash who don’t want to part away with precious possessions.
These are also much faster than bank loans, as you can directly seal the deal on the spot. However, they aren’t that much better of a deal than other kinds of loans like payday loans.
- Local Credit Unions
If the loan you want to apply for is for a small amount, and family and friends aren’t an option, then a local credit union may help you. These unions use capital that the members deposit into the union to fund loans. They also typically charge lower fees than banks. For personal loans, you may be able to get a lower interest rate. Also, you can directly speak to union members in case of any complications. This is why local credit unions are a good option to consider.
FAQs – No Credit Check Loans Guaranteed Approval
Q1. What’s Considered Bad Credit?
Bad credit scores can make getting loans a challenge. Lenders use different ways of credit scoring to measure scores. The most popular and widely accepted model, though, is the FICO score. The FICO score starts at 350 and goes to 850. A score in the range of 580-669 is considered a fair score, whereas a score below 580 is considered poor. A score above 700 is considered to be a good score. Poorer scores usually lead to higher interest rates.
Q2. How Do You Know What Credit Score Range you’re in?
Anything above 670 is considered good credit, whereas anything below 580 is considered poor credit. Anything in between this range is considered fair. From 800 onwards, you are considered to have excellent credit and typically get the best deals and terms on loans at this score.
Q3. What Interest Rate Can You Get With Bad Credit?
A bad credit score makes you less creditworthy. This makes you a high-risk client to deal with, and as such, you receive higher interest rates. For example, the average interest rate for an auto loan with subprime credit is around 11.03%, and below 500, it’s near 15%.
For someone with bad credit, the interest rate can be anything from 6.5% to 12.9 or more. On average, they’ll likely be a lot higher. You may also have to deal with things like security deposits if you have a poor FICO score under 580.
If your credit is on the subprime side, you should be expecting a higher interest rate.
Q4. Where Can You Get No Credit Check Loans?
Online marketplaces like the ones we’ve mentioned are a good place to start with if you’re looking to get connected to lenders. Then, depending on your credit, you can get matched with a lender that will look past your credit.
However, all lenders do some credit checks, and they may check your bank statements and other details. Unfortunately, they also tend to have very high-interest rates.
Q5. Can I Qualify For A No Credit Check Loan?
No credit check loan lenders check other kinds of details that show whether or not you’re capable of paying back your loan. These are things like monthly income, how stable your job is, your bank statement, yearly income, and other financial details. If you have a stable income every month, you have a better chance of qualifying for these loans.
Q6. Are Bad Credit Loans Safe?
A personal loan from a credible debtor is safe. You should vet the lender first, however. Look for people they’ve worked within the past; look for any sort of reviews that can help you verify the legitimacy of a lender. Personal loans offered by lenders who are backed by credit unions also tend to be safe.
Some signs to look out for, though, when it comes to lenders are:
- Pressurizing. A lender shouldn’t pressure you into taking their services.
- It isn’t clear to you about the details. This can include repayment terms, fee structure, and more.
- Offers you a deal that sounds too good to be true. These usually come with a hidden catch that you may not see immediately.
Q7. Are No Credit Check Loans Suitable For People With Poor Credit?
They can be. However, when taking any kind of loan, the rule of thumb is never to borrow more than you can realistically repay. This doesn’t just mean your budget, but also how much you can take out of your paycheck each month for the debt. If you fail to repay the loan, that might worsen your credit score even more.
Q8. How Fast Can I Get A No Credit Check Loan?
This depends on the size of the loan. Smaller loans that are short-term can be approved very quickly, in a day or two. However, larger loans that are paid off over a large period of time can take a lot more time, such as weeks, to receive.
Q9. How Can I Improve My Credit To Get Better Loans?
Some ways to increase your credit score are:
- Timely payments. Your payment history makes up a decent portion of your FICO score, so paying your bills and any payments on time is a great way to make your score go up.
- Repairing your credit. You can try repairing your credit by pulling up your credit report from the 3 bureaus and checking for any inaccurate or outdated information. Should you find any, you can dispute it and try to get them to remove it.
- Avoid mass-applications. Your recent financial activity also makes up a portion of your FICO score. If you’ve applied for too many loans or credit cards, that can reflect poorly on your report.
Q10. Unsecured Personal Loans; What Are They?
Simply put, unsecured loans are loans without any collateral at stake. Secured loans take some possession from you as collateral if you’re unable to repay your loan. However, failure to pay on an unsecured loan can still reflect very badly on your credit report.
Conclusion – Get Instant Online No Credit Check Loans
Having bad credit might make it feel as if you have no other options left. If it’s not the high-interest rates, it’s the lack of loans that you’re eligible for. It can be a struggle to find a good loan that doesn’t break your wallet and puts you in a debt trap when your score isn’t favorable. However, you shouldn’t opt for loan sharks, shady lenders, and predatory companies even as a last resort.
There are options for individuals who may not have a good credit report besides borrowing from just family and friends.
You can sign up at a non-profit credit union. These places have come to be known as havens for those with poor credit, and they can often get you a better deal than you’d hoped for. Since they’d be helping a member, there’s also the reassurance that you won’t be exploited.
Not all companies and online lenders are predatory, though – the companies mentioned here are prime examples of genuine finance companies that help individuals with a bad credit score get a good deal that helps them out of a financial pinch.
Either way, whatever you choose, we hope this article has helped you make better financial decisions and find a loan that helps you out of your financial pinch.