4 no-credit-check loan options
|
Lender |
Loan type |
Loan amount |
Est. APR |
Fees |
|---|---|---|---|---|
|
OppLoans |
High-interest installment loan. |
$500 to $4,000. |
160%. |
None. |
|
Possible Finance |
High-interest installment loan. |
Up to $500. |
91.25% – 248.67%. |
May charge an origination fee. |
|
Earnin |
Cash advance app. |
Up to $100 per day; up to $750 per pay period. |
None. |
|
|
Afterpay |
Buy now, pay later app. |
$200 to $2,000. |
None. |
Late fee: $8. |
Note: NerdWallet rates high-interest personal loans, cash advance apps, and buy now, pay later apps using various methods. Learn more about the star rating systems used for BNPL, cash advance, and personal loan applications.
Certain no-credit-check loans have interest rates that are more than twice as high as the original loan amount, and borrowers who take out these loans run the risk of getting sucked into a debt cycle. Before applying for a no-credit-check loan, weigh your options for affordable borrowing and non-borrowing. You can compare alternatives to payday loans and other expensive loans, or you can search NerdWallet’s database for nearby financial aid programs.
OppLoans: No-credit-check, high-interest installment loans
OppLoans are expensive, short-term loans that are offered in the majority of states. Regardless of the borrower’s creditworthiness or capacity to repay, all loans have triple-digit annual percentage rates.
The fintech company OppFi, which offers OppLoans, evaluates applicants’ bank account activity to determine how much money they make each month. To ascertain whether borrowers have sufficient income to repay the loan, the lender performs a soft pull on the borrower’s credit rather than a hard pull and looks up bank account transaction data.
Equifax, Experian, and TransUnion are the three main credit bureaus that OppFi reports payment information to.
|
APR |
160% – 179%. |
|
Loan amount |
$500-$4,000. |
|
Fees |
No origination, late or prepayment fees. |
|
Repayment terms |
9, 12 and 18 months. |
|
States where available |
AK, AL, AR, AZ, CA, DE, FL, HI, ID, IL, IN, KS, KY, LA, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI and WY. |
|
Pros |
Cons |
|---|---|
|
|
- Minimum monthly gross income of $1,500.
- A bank account and regular source of income.
- To receive paychecks through direct deposit.
- to reside in a state where OppLoans are available
- To be at least 18 years old.
Possible Finance: No-credit-check, high-interest installment loans
Possible Finance is an app that offers customers with poor or no credit loans up to $500. Payments are made in biweekly installments with repayment terms of up to eight weeks. Possible rates in some states can reach 248%, which is very high when compared to the maximum annual percentage rate (APR) of $336, which is advised by the majority of consumer advocates.
Potential looks at applicants’ bank account activity to assess eligibility and determine loan amount; however, the lender does not run a hard credit check. The lender reports payments to Experian and TransUnion.
|
APR range |
91.25% – 248.67%. |
|
Loan amount |
$50 – $500. |
|
Fees |
Fees vary by state. |
|
Repayment terms |
8 weeks. |
|
States where available |
AL, CA, DE, FL, ID, IN, IA, KS, KY, LA, MI, MS, MO, OH, OK, RI, SC, TN, TX, UT and WA. |
|
Pros |
Cons |
|---|---|
|
|
- A Social Security number.
- A state-issued ID, such as a driver’s license.
- A positive bank account balance with recent deposits.
- A minimum monthly income of at least $750.
EarnIn: No-credit-check cash advances
Through the EarnIn cash advance app, borrowers can deduct up to $750 in daily $100 increments from their paycheck prior to payday. While some apps allow users to borrow more money at once, this one has a $750 maximum between paychecks, which is higher than most similar apps. EarnIn offers optional tips and fees for same-day funding, but no mandatory fees are assessed.
EarnIn only collaborates with workers who receive regular paychecks, have a dedicated workspace, or have an email address provided by their employer. To establish eligibility, the app does not perform a hard or soft credit check. Instead, borrowers must show proof of time worked.
|
Advance amounts |
Up to $100 per day and $750 per pay period. |
|
Fees |
|
|
Repayment |
Withdrawn from your bank account on the date of your next direct deposit. |
|
Time to fund without express fee |
1 to 2 business days. |
|
Time to fund with express fee |
Within minutes. |
|
Pros |
Cons |
|---|---|
|
|
- To be at least 18 and a U.S. resident.
- A consistent direct deposit schedule.
- A fixed work location, work email address or electronic timesheet.
Afterpay: No-credit-check buy now, pay later loans
A company called Afterpay divides purchases into smaller payments so you can buy now and pay later. Users’ maximums are initially $600 and increase over time. Interest is not charged by Afterpay, but late fees are limited to $8.
Afterpay only does a soft credit check when you apply. Your shopping bill is divided into four equal payments by the app; one is due at checkout, and the remaining three are due in biweekly installments.
|
Loan amount |
$200-$2,000. |
|
Payment structure |
Pay-in-four plan. |
|
Interest |
0%. |
|
Availability |
Available online and in stores. |
|
Conducts soft credit check |
Yes. |
|
Minimum credit score |
None. |
|
Late fee |
Up to $8. |
|
Other fees |
No other fees. |
|
Option to reschedule a payment |
Yes. |
|
Pauses account when payment is missed |
Yes. |
|
Pros |
Cons |
|---|---|
|
|
- To be 18 years old and a U.S. resident.
- A verifiable email address.
- to have permission to make the purchase using a credit card, debit card, or checking account
What is a no-credit-check loan?
Your credit score or history are not taken into consideration by a no-credit-check lender when determining whether to approve your loan. Payday lenders and other companies that provide high-interest loans frequently omit credit checks.
These loans, which are frequently for a few thousand dollars or less, can be used to pay for an unexpected expense or close a gap in income. Usually, they have a few weeks or months as their short repayment terms.
Since the lender cannot verify your credit history, the loan is risky; many no-credit-check installment lenders incentivize their risk by charging exorbitant annual percentage rates. The short loan terms may also make it difficult for borrowers to make timely repayments and may even put them in a debt cycle.
Soft vs. hard credit inquiry
Even a no-credit-check lender may do a soft credit inquiry. Although you may not be aware of it, this kind of credit check has no bearing on your credit score. When you get a credit card offer in the mail or are pre-qualified for a personal loan, these are examples of soft checks.
A hard credit check requires your consent. It usually results in a few points being deducted from your credit score and is initiated when you file an official application for credit, such as one for a mortgage or auto loan. Hard credit inquiries usually remain on your record for approximately two years, but they only have a one-year impact on your credit score.
No-credit-check loan example
A $2,000 loan with a 6% annual percentage rate for a year will require monthly payments of $201. That identical loan from a no-credit-check lender with an annual percentage rate of 20200% would cost you $396 per month, or nearly twice as much.
Here are some instances of the same $2,000 loan repaid over a 12-month period at various APRs.
|
Credit score |
Example APR |
Monthly payments |
Total payments |
|---|---|---|---|
|
Excellent (720 or higher) |
11%. |
$177. |
$2,144. |
|
Poor (629 or lower) |
36%. |
$201. |
$2,411 |
|
No-credit-check |
200%. |
$396. |
$4,746. |
Things to consider about no-credit-check loans
Before requesting a no-credit-check loan, be aware of the following.
Additional requirements for qualification: While some no-credit-check lenders do not require a credit score, others do based on income and U S. citizenship or residency. If you do a soft credit check, some companies might require you to have some credit history.
Verify whether the lender reports payments to the three main credit bureaus for credit reporting. This information is typically available on the lender’s website or by getting in touch with customer service. On-time loan payments improve your credit score, while late payments lower it when your loan payments are reported to the bureaus. This is particularly crucial to remember when dealing with high-interest lenders whose pricey loans could be challenging to pay back.
Collections: High-interest lenders and certain buy-now, pay-later apps have the ability to place you in collections if you default on a no-credit-check loan. This usually happens after 120 to 180 days of nonpayment. Debt collectors may get in touch with you by text, email, mail, or phone. Unpaid advances are not sent to collections by the majority of cash advance apps.
As per the Military Lending Act, a lender is able to offer a loan with an annual percentage rate higher than 3.66% to active duty service members, their spouses, or specific dependents. A lender may refuse your loan application if you are a member of the armed forces, your spouse, or a covered dependent in order to abide by the law.
How to shop for no-credit-check loans
Here are some suggestions to stay away from predatory lenders if a no-credit-check installment loan is your best option.
- Look for the APR. An APR enables you to assess the loan’s affordability and contrast it with alternative loan options. Before you sign a loan agreement, lenders are required by law to disclose the annual percentage rate (APR).
- Find a lender that assesses your ability to repay. A lender may indicate that they want you to repay the loan by reviewing your bank account information, performing a soft credit pull, examining alternative credit bureaus, and requesting proof of income. If a lender doesn’t verify that you can repay the loan, they might be counting on you to take out another one to pay off the first, which is how a debt cycle starts.
- Understand the repayment terms. Know when you will make your payment and how the lender will get the money, regardless of whether you decide to pay back the loan in a few weeks or several months. Check your budget to make sure the funds will be there and you won’t overdraw if the lender debits your bank account.
- Review the amortization schedule. Ask to see the amortization schedule, a table that indicates how much of each payment goes toward principal and how much toward interest, if the loan has multiple payments. Each payment must at least partially reduce the principal balance of the loan.
- Look for the lender’s license. Lenders must register in all states where they operate. Many list their licenses on their websites.
- Beware of scammers. Reputable lenders won’t require payment in full before granting you a loan. Before lending money, if the lender requests cash or a gift card, it’s probably a scam.
No-credit-check loan alternatives
Online lenders will take into account borrowers with bad credit, even if their credit score is less than 600. Some lenders take into account extra information, such as your work status and outstanding debts, in order to help you qualify. Bad-credit loans have higher rates, but typically not above 36%.
Co-signed or joint loans
Think about including a coapplicant with a better credit profile if your credit score is low. A co-borrower on a joint loan shares the loan funds and repayment obligations, whereas a co-signer is someone who provides a letter of recommendation on your behalf but does not have access to them. In either scenario, if you are unable to make loan payments, your co-applicant will be held accountable.
Secured loans
People with fair or poor credit scores may be eligible for a larger loan or a lower rate on secured loans because they typically have laxer credit requirements than unsecured loans. A car is typically accepted as collateral by online lenders, but savings or investment accounts are preferred by banks and credit unions. Consider the advantages of adding collateral and the possibility that you will lose it if you don’t make enough payments.
Family loans
Ask a reliable person to assist you with rent, bill payment, or locating cash for groceries. Although it might be challenging to request, doing so will protect your credit and prevent you from signing a contract with a payday or high-interest lender. A contract outlining the loan amount, repayment terms, and how you’ll repay them can be drafted by you and your family member.
Payment plans
If you would find it sufficient to make a one- or two-month reduction in a credit card bill, rent, utility bill, or mortgage payment, ask about a payment plan. You may apply for an extension using the hardship forms provided by some creditors and utility companies, but you might also need to get in touch with your lender or landlord.
Credit union loans
Many credit unions offer small personal loans starting around $500. In order to qualify you, they might take into account details other than your credit score, such as your membership history. Federal credit unions cap rates for personal loans at 18%. Additionally, some credit unions provide payday alternative loans, or PALs, which are small-dollar loans with maximum annual percentage rates of 8%.
Capital Good Fund
For emergency loans up to $1,500, Capital Good Fund, a nonprofit lender, accepts borrowers with little to no credit history. The lender will examine your credit history but does not have a minimum credit score requirement. In certain states, Capital Good Fund also offers loans for home weatherization and immigration-related costs. Rates ranging from 2012 to 2016 make Capital Good Fund loans a good choice for borrowers residing in states where the lender conducts business.
FAQ
What is the easiest loan to get approved for?
Payday loans, no-credit-check loans, and pawnshop loans are among the loans that are the easiest to be approved for if you have bad credit. Generally speaking, personal loans with almost no approval requirements have the highest interest rates and loan fees.
Can you get a loan without it going on your credit?
Some lenders offer personal loans with no credit check. Since they are unable to depend on a person’s credit history, they might consider alternative measures of their potential to repay the loan, like their history of rentals or overall income.
How can I get loan without credit score?
Obtain a Guarantor or Apply with a Co-Applicant To increase your chances of being approved if your income or credit score is low, you can include a co-applicant or guarantor in your application. By reducing the risk associated with your application, you can persuade the lender to approve your loan with a higher likelihood of timely repayment.
Read More :
https://www.nerdwallet.com/article/loans/personal-loans/no-credit-check-installment-loan
https://www.opploans.com/personal-loans/no-credit-check-loans/