Can You Get a Loan With No Credit Check?

When you apply for a personal loan, lenders might perform a credit inquiry to access your credit history as part of your application. This can make it difficult to get a loan if you have bad credit or no credit history.

If you’re worried your credit score will hurt your chances for approval, you may be able to get a loan with no hard credit check. As with any loan, it’s important you understand all of the terms and costs before you apply.

Key takeaways

No-credit-check loans offer quick cash and can have high interest rates compared to prime loans.
Lenders assess factors like income and employment instead of relying on credit scores.
Common options include payday loans, installment loans, BNPL, and cash advance apps.
Always review loan terms carefully to avoid hidden fees and penalties.
Consider alternatives like secured loans or credit union options first to reduce costs.

What is a no-credit-check loan?

A no-credit-check loan is a type of borrowing in which the lender doesn’t perform a check on your credit report or use your FICO Score to assess your eligibility.

This can make these loans appealing if you have bad or subprime credit. However, no-credit-check loans typically have higher interest rates because they represent a higher risk for the lender.

They are a quick and accessible solution, but before applying, it’s important to explore all your options and understand the potential risks and costs.

How do loans with no credit check work?

Instead of using your FICO Score or a credit inquiry, lenders offering loans with no credit check use other methods to assess your ability to manage a loan. These can include:

Assessing your employment status to ensure you have a reliable source of income
Looking at your income and bank account to understand if you can afford the loan payments

You could still be refused a no-credit-check loan if you do not satisfy these checks.

What is a hard and soft credit inquiry?

Hard credit inquiries, or ‘hard pulls’, are used by lenders when you apply for any form of credit, like a loan or credit card. They are used to access your credit file so they can check a range of information that helps them decide whether they will lend to you or not.

A hard inquiry leaves a mark on your file, which can be seen by other lenders. Many hard inquiries can negatively impact your credit score.

A soft inquiry is a way of accessing your credit file without potentially negatively impacting your overall credit score. They are usually used as part of a background check or for product preapproval. Here is a detailed look at soft vs. hard credit checks.

Types of no credit check loan

There are several different types of loans with no credit check or no hard credit check that could be available to you. To determine which option is right for you, consider how much you want to borrow and what you intend to use the proceeds towards.

Installment loans

An installment loan is a lump sum you pay back in regular monthly payments. Interest rates will be high if no credit check is required, but they typically have lower interest rates than payday loans.

Payday loans

These are high-risk, short-term loans designed to be repaid the next time you get paid.

Some states prohibit payday loans or impose strict limits on loan amounts, fees, and interest rates. Always ensure the lender complies with your state’s regulations.

Line of credit

Some lenders offer revolving lines of credit without performing a credit check. They work in a similar way to a credit card: you can borrow up to a specified limit, and interest is charged only on the amount borrowed.

Buy now, pay later (BNPL)

BNPL platforms, like Affirm and Klarna, allow you to make a specific purchase and repay the balance over a few weeks or months.

Depending on how you choose to repay, BNPL can be interest-free. For example, some lenders won’t charge interest if you repay the loan in four payments over two months. However, most lenders will charge interest if you repay over a longer period of time.

Cash advance apps

Apps like Earnin or Dave don’t require a credit check and can provide a small cash advance, usually based on your income. You typically don’t pay interest but a flat one-off fee and a recurring membership charge.

Car title loans

A title loan is a loan that’s secured against your vehicle. As the risk is reduced, you don’t always need a credit check, but title loans can have high interest rates, and your vehicle is at risk of repossession if you default on the loan.

Title loans are heavily regulated in some states, and their availability may be restricted. Confirm that the lender operates legally in your state.

Should you get a loan with no credit check?

A loan with no credit check can give you quick access to cash in an emergency if you have poor or no credit history. However, before you apply it’s important you understand all of the costs and terms.

Questions to ask yourself before applying

Take the time to ask yourself these questions before you start an application for a no-credit-check loan:

Can I afford to repay the loan on time?
Is the loan absolutely necessary?
Is there an alternative way I can borrow?
Do I fully understand the terms and costs of the loan?
Have I considered what would happen if I can’t repay the loan?

By answering the questions honestly, you can determine whether a loan with no credit check is the best option for you.

Alternatives to no-credit-check loans

Before applying for a loan with no credit check, it’s worth considering all of your other options to find the best type of loan for you. Here are some other ways to borrow if you have bad credit:

Secured personal loans

Secured loans can be easier to get when you have poor credit because the lender has your collateral as security against the loan. This means they can offer lower rates, but your property will be at risk if you’re unable to keep up with the payments.

Co-signer loans

If you’re having trouble getting a loan on your own, you could ask a friend or family member to co-sign your application.

If they have good credit, you’ll have a better chance of getting a loan with a lower interest rate. However, make sure they are fully aware that they will be responsible for the payments if you cannot repay your co-signed loan.

Credit union loans

Credit unions often have more lenient requirements compared to banks, but you will need to be a credit union member to qualify.

They will look beyond your credit score when assessing your eligibility, and the interest rate they charge is capped at 18% for most of their loans.

Payday alternative loans (PALs)

PALs are offered by credit unions and allow members to borrow a small amount, usually less than $2,000, at a capped rate of 28%.

PALs are designed to be affordable alternatives to payday loans, but you must be a credit union member to apply. Not all credit unions offer PALs, so they may not be a viable option for everyone.

How to get a loan with no credit check

If you want to apply for a loan with no credit check or no hard credit check, here are the steps you should follow:

Choose the right loan option for you: Think about the different no-credit-check and no-hard-credit-check loans available to you and work out which is the most appropriate for you and the amount you want to borrow
Check you’re eligible: Even without a credit check, most lenders set other criteria you must meet to be accepted for a loan. These can include proof of employment and checking your bank details.
Review the lenders: Read reviews and ensure they are licensed to operate in your state to avoid predatory lenders.
Understand the terms: Before applying, check all the terms and conditions carefully. Ensure you understand the repayment costs, schedule, and any charges and penalties you could incur.
Apply online: Most no-credit-check loans can be applied for online. You will need to provide personal, financial, and employment information and may need to submit supporting documentation.

Before you apply for any lending product, always confirm that the lender is licensed to operate in your state and complies with federal regulations.