No-Credit-Check Loans

Some no-credit-check loans have high fees, short repayment terms, and triple-digit annual percentage rates (APRs) that make them difficult (and very expensive) to repay. The most notorious of these, payday loans, can have APRs of well over 400% in states with few regulations.

But you have safer options, including online personal loans, "buy now, pay later" (BNPL) plans, cash advance apps, and payday alternative loans (PALs). Any of these loans may help the nearly 29% of Americans with fair or poor credit get through a funding crunch. But they're not an endgame solution and also have drawbacks.

Improving your credit with responsible debt management and credit-builder products is typically the smartest strategy. But if you need money now, it's important to know which loans to seek and which to avoid.

Best no-credit- and soft-credit-check loan lenders

60 Month Loans

60 Month Loans is one of our top picks due to reasonable rates, long terms, fast funding, and excellent customer service reviews. The company performs a soft credit check, which won't hurt your score. Depending on your state, loan terms range from 12 to 60 months, with typical APRs under 36%. Amounts range from $2,600 to $10,000. Funds are typically disbursed one business day after you accept your loan offer.

OppLoans

Depending on your state, loan amounts range from $500 to $4,000. The maximum APR is 195%, though the APR charged in most states is 160%. Repayment terms range up to 18 months, depending on your state and loan amount. The company requires you to receive income through direct deposits and performs a soft credit check when you apply. OppLoans also reports your payments to the credit bureaus.

Possible Finance

Possible Finance provides loans up to $500, depending on your state, repaid in four equal payments over approximately eight weeks. Fees and interest charged vary by state. In states that charge fees (instead of interest), the maximum APR is 163%.

The company requires that your bank account is not overdrawn, income is deposited regularly, and you don't have a history of excessive non-sufficient funds fees. Possible Finance reports to the credit bureaus to help you build credit history and offers a 29-day grace period with no late payment penalties.

MoneyLion

MoneyLion is a cash advance app that offers up to $500 with 0% interest and no fees for standard delivery. Tipping is optional. You schedule repayment for your next payday, and MoneyLion takes the money out of your account automatically. You'll need a bank account with a positive balance and a history of deposits to qualify. No credit check is required and a cash advance from MoneyLion won't impact your credit.

Loan Amounts:

$500 Loan

$1,000 Loan

$2,000 Loan

What is a no-credit-check loan?

A no-credit-check loan refers to any loan that doesn't require a credit check, also known as a credit pull or credit inquiry. Most lenders perform a credit check to view the information on your credit report, like your payment history and outstanding debt, to evaluate whether you're likely to repay a new loan. No-credit-check lenders don't perform a credit check, but they may have other requirements, such as proof of income and a bank account.

Loans that only require a soft credit inquiry aren't technically no-credit-check loans. But they won't impact your credit score if you apply for one (or several). They also tend to have more lenient credit requirements. Some no-credit-check loans charge fees instead of interest, which makes it important to determine the loan's APR. The APR accounts for the interest rate and any fees, so it's the best way to compare loan costs.

Some personal lenders, such as 60 Month Loans, as well as BNPL plans perform a soft credit pull as part of the application process. While a poor credit score won't necessarily prevent you from getting approved for these loan types, the lender may review your financial history when making an application decision.

Types of loans with no credit check

The following loan types don't require a hard credit inquiry and are available to qualified borrowers with poor credit or no credit history. Applying won't impact your credit score.

Personal loans

A personal loan provides a lump sum of cash that you repay in monthly installments over several months or years. While most online lenders don't offer personal loans with no credit check, a few approve borrowers with only a soft credit pull, including OppLoans and 60 Month Loans. These lenders don't offer loans in all states, and interest rates may be over 100%. Personal loans with only a soft credit check tend to come with lower borrowing limits and shorter terms than personal loans that require a hard credit check, but some lenders offer loan amounts up to $10,000 and terms up to 5 years with only a soft credit check.

Payday alternative loans (PALs I and PALs II)

Many federal credit unions offer payday alternative loans to their members and may not require a credit check. PAL II loans are immediately available to new members, come in amounts up to $2,000, and are repaid over one to 12 months. PAL I loans have a one-month membership requirement, a maximum term of 6 months, and a maximum loan amount of $1,000. Both loan types come with a maximum interest rate of 28%.

Cash advance apps

Cash advance apps allow you to receive a portion of your earnings ahead of payday. You can typically only get a few hundred dollars at a time, but there's no credit check required. The money is typically repaid as an automatic deduction from your next paycheck. Some cash advance apps charge fixed transaction fees, some are membership-based, and others make money through expedited funding fees and tips. Requirements vary, but you typically need to link the bank account where your income is deposited.

Buy now, pay later (BNPL)

Buy now, pay later is a checkout option at many online retailers that functions like an installment loan. The BNPL provider pays the retailer directly, and you repay the provider in fixed installments. BNPL providers, like Affirm and Klarna, typically offer two options: four interest-free, bi-weekly payments, or a longer-term installment loan with fixed monthly payments that include interest. Most providers don't require a hard credit inquiry for short-term financing options.

Payday loans

Payday loans are typically small-dollar loans of $500 or less that the borrower repays on their next payday. Depending on the laws in your state, payday loans may be available online, from a storefront payday lender, or banned entirely. APRs also vary according to state regulations, but may be between 140% and 662%, according to data from the Center for Responsible Lending.

In some states, payday lenders allow you to renew the loan repeatedly (or do so automatically), which leads to mounting fees. You might also need to authorize the lender to debit your bank account. Payday loans don't require a credit check.

Auto title loans

Auto title loans are typically short-term loans secured by the title to your vehicle. Your car acts as collateral for the loan, which means the lender can seize your car if you fail to repay. But title loan terms, APRs, and loan amounts vary significantly depending on your state laws. In some states, maximum finance charges may equate to triple-digit APRs or be uncapped. Repayment terms are typically less than one year and could be as short as one month. But years-long loans may be available in some states.

Though title loans are typically no-credit-check loans, lenders may run a credit check for longer-term installment loans secured by your vehicle.

Pawnshop loans

To get a loan from a pawnshop, you need to provide a valuable asset, like a television or gold jewelry, as collateral. The pawnshop may lend you up to 60% of the item's resale value, for example, which you may need to repay within 30 to 60 days.

Finance fees can translate to triple-digit APRs, though some states cap the APR at 36%. Some pawnshops allow you to extend the loan term, but if you can't afford to repay the shop, you'll lose your asset. Pawnshop loans don't require a credit check or impact your credit score. If you default on the loan, the legal title of your asset transfers to the shop.

How do no-credit-check loans work?

Each type of no-credit-check loan works a little differently. In general, you need to show proof of income, which might involve showing a storefront payday lender your paystub or linking your bank account to a cash advance app, or pledge an asset as collateral. You'll also need to verify your identity, and you may need to provide your Social Security number or fulfill other requirements as part of the application process.

Funding, rates, and repayment

Most no-credit-check loans provide a lump sum of cash, either directly to your bank account or to a retailer to pay for your purchase. Funding is usually fast, and you may receive the cash the same day.

You repay the money you borrowed plus interest and/or fees at a later date in one or more installments. For example, payday loan lenders don't typically charge interest, but charge fees per $100 borrowed; repayment is due in one lump sum after two weeks. But the short time span makes the fees charged very high. If you pay $15 to borrow $100 and repayment is due in two weeks, you'd pay a 391% APR.

Payday alternative loans, available from some credit unions, have APRs that top out at 28% and are paid back over one month to one year. BNPL lenders may offer 0% interest and fee-free financing if you repay within six weeks. They also may offer rates similar to traditional personal loan lenders for longer terms — up to 36% APR — but this may require a credit check.

Loan amounts

No-credit-check loans are inherently risky for the lender. As such, loan amounts are typically low. For example, both payday loans and cash advance apps usually have maximum amounts less than $1,000. Or, the loan amount is determined and secured by an asset of yours that the lender holds on to (and can keep if you don't repay).

Credit impact

Some no-credit-check loans, such as payday loans and BNPL, have no impact on your credit. But some lenders, including most online installment lenders, report your payment activity to the three major credit bureaus. If you're able to make your payments on time every month, this can be a great way to build a positive credit history, which will give you access to better loan options in the future. But these loans can also damage your credit if you pay late or miss payments.

Pros and cons of no-credit-check loans

How to get a personal loan with no credit check

1. Compare your options: It's worth prequalifying for a personal loan from an online lender that evaluates your credit score, even if you have bad credit, since some lenders have flexible requirements. Prequalifying won't hurt your credit score, and you may get a lower rate compared to other no-credit-check options.
2. Apply: You can apply for many no-credit-check loans online. Some lenders allow you to link your bank account for a quick and easy application process. With others, you may need to provide documents that prove your income, such as a pay stub or W-2. Since applying won't impact your credit score, you can apply with multiple lenders to compare your options. But consider applying for a loan that requires a hard credit check — most cap APRs at 36% and some, like OneMain Financial and Upstart, have no credit score minimum.
3. Sign to accept: Choose the loan offer that best meets your needs. Make sure you can afford the monthly payment before signing your loan agreement.
4. Get funded: Most no-credit-check lenders can transfer the funds to your bank account or in cash instantly.

How to compare no-credit-check loans

As you research no-credit-check loans, evaluate your options based on the following criteria:

• Lender reputation: Be sure to check customer reviews for each lender on third-party websites like Trustpilot. You may find that some no-credit-check lenders have an excellent rating, while others do not.
• Rates and fees: Compare the borrowing cost of different no-credit-check loan options. For an apples-to-apples comparison, you may want to calculate the APR of options for which the lender only provides a fee schedule. APR expresses the annual interest charges and upfront fees as a percentage of the loan amount.
• Repayment terms: No-credit-check loans with very short repayment terms, such as payday loans, tend to have the highest rates. Personal installment lenders may offer a choice of repayment terms with the same or different rates for each option. Choose a loan with a monthly payment you can comfortably afford. You can typically repay an installment loan early to save money on interest, as long as the lender does not charge a prepayment penalty.
• Funding time: If you need an emergency loan, look for a lender that offers same-day or next-day funding.
• Credit reporting: If you're looking to build credit, choose a lender that reports to the major credit bureaus. Just make sure you make your payments on time each month.

Alternatives to no-credit-check loans

• Personal loan with a cosigner or co-applicant: If you apply for a personal loan with someone who has good credit and is willing to take responsibility for the loan in the event you fail to repay, you'll have a better chance of being approved. A few lenders allow cosigners — cosigners guarantee the loan, but don't have access to the money. Many more lenders allow co-borrowers, who have access to the loan funds and make monthly payments with you.
• Bad credit personal loan: Check out lenders that specialize in issuing bad credit or fair credit loans. For example, Upstart uses AI underwriting to approve a greater share of borrowers, and Opportun offers personal loans secured by your auto title that may be easier to qualify for but have lower rates than title loans.
• Employer advance: Some employers offer payroll advances or loans. Check your employee handbook or other materials to determine your employer's policy.
• Family loan: Asking your family for help can be tough, but if they have the means to assist, they're likely to offer you a much lower interest rate than you'd get with a no-credit-check loan. Online platforms for family lending can make the process easier.
• Crowdfunding: A crowdfunding campaign on an online platform like GoFundMe allows you to request money from your social network during financial hardship.

Keep Reading:

• What to Do if You’re Denied a Personal Loan 
• How To Build Credit