When you have bad credit, applying for personal loans can be demoralizing. You may face multiple rejections due to a less-than-stellar credit history that continues to impact your score. It’s important to take steps to improve your credit, but that can take time. If you need money now, you have options.
Some personal loan lenders are open to bad-credit borrowers, and others don’t require a credit check at all. But some of your options may be costly and risky. We’ll cover what to expect from no-credit-check loans and provide some alternatives, so you can get the cash you need.
How does a no-credit-check loan work?
No-credit-check loans tend to be short-term loans with high annual percentage rates (APRs), which encompass the interest rate plus fees. Because these loans are expensive and typically need to be repaid quickly, there’s a greater risk of default. Some no-credit-check lenders report your payments to the credit bureaus, while other types of no-credit-check loans won’t affect your credit at all. Some lenders may conduct a soft credit pull when you apply, which doesn’t impact your score, while others may only require proof of income.
APRs on a no-credit-check loan may range from around 160% for an online installment loan to nearly 400% for a two-week payday loan. The high APR means you’ll pay significantly more money for the privilege of borrowing. Below is an example of what a 12-month, $3,000 loan would cost at different APRs.
| Credit score | Loan type | Example APR | Monthly payment | Total cost |
| Excellent | Personal loan | 11% | $265 | $3,182 |
| Poor | Personal loan | 36% | $301 | $3,617 |
| No-credit-check | Online installment loan | 160% | $515 | $6,175 |
Types of no-credit-check loans
Here are a few types of no-credit-check loans.
Installment loans
A few online lenders provide installment loans to borrowers without a hard credit inquiry. Due to differences in state laws, rates and terms often vary by state. You may pay a rate as low as 19%, or you may pay an APR of up to 200%, depending on the lender and your state. Terms can range from 4 weeks to three years. Typical requirements include a bank account and a source of income. Some online installment loan lenders perform a soft credit check, which won’t impact your score.
Cash advance apps
Cash advance apps allow you to get a small advance on your paycheck, usually up to $250 or $500, without a credit check. Some of these apps request optional tips rather than charging fees or interest.
Payment is usually due on your next payday, but some apps give you up to 30 days for repayment. These apps frequently require that you receive regular direct deposits to your bank account to be eligible.
Check Out: Payday Loan vs. Cash Advance
Payday loans
Payday loans are small-dollar loans that you repay out of your next paycheck. They come with high fees that can translate to an APR of nearly 400%. Because of the high rates and short repayment terms, the risk of default is high, and most borrowers renew their loans, racking up even more fees.
However, payday loans do not require a credit check, and payday loan lenders do not typically report to the credit bureaus. It’s also possible to get a payday loan almost instantly from a storefront or online.
Learn More: How Do Payday Loans Work?
Car title loans
Title loans are small-dollar loans secured by the title to your vehicle. You’ll typically have 15 to 30 days to repay a title loan, and APRs are usually around 300%. If you don’t repay the loan in time, the lender can take your car. About one in five title loan borrowers have their vehicles repossessed due to default, according to the Consumer Financial Protection Bureau. You typically need a source of income and a lien-free car title to get a title loan, but a credit check isn’t required.
Payday alternative loans
Payday alternative loans are offered by credit unions and provide a safer alternative to payday loans, but you must have been a member of the credit union for at least a month. You can borrow between $200 and $1,000 and repay the loan over one to six months. Interest rates are capped at 28%. You’ll need proof of income, but some credit unions do not check your credit when you apply for a payday alternative loan.
No-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 $1,000 to $10,000. Funds are typically disbursed one business day after you accept your loan offer.
OppLoans
OppLoans offers installment loans in Nevada and provides loans through its lending partners in many other states. Depending on your state, amounts range from $500 to $4,000. In most states, the typical APR is 160% and repayment terms range from 9 to 18 months. 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 that you repay in four installments over eight weeks. On most loans, the APR is about 150%. The company has few requirements for borrowers and reviews your bank account history rather than requiring a credit check. 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 in any way.
Loan Amounts:
Pros and cons of no-credit-check loans
Pros
- Accessible to borrowers with bad credit
- Funding is fast and sometimes instant
- Many options do not require collateral
Cons
- High borrowing costs
- May have short repayment terms
- Lower loan limits than traditional personal loans
How to get a no-credit-check loan
The loan process can vary depending on the type of no-credit-check loan you’re applying for. For online installment loans, you’ll generally follow these steps:
- Research lenders: Find a lender that offers loans in your state and has eligibility requirements you can meet. Some lenders may offer a no-obligation rate check, which can help you compare rates across multiple lenders.
- Apply: Follow the lender’s instructions and submit the required information for review. You may need to connect your bank account.
- Sign and accept your loan offer: If you’re comfortable with the final rate and monthly payment, sign the loan documents to accept the offer.
- Wait for the funds: Most lenders will distribute the funds directly to your bank account within a few business days.
- Stay on top of repayment: Budget for your monthly payments and make sure you don’t pay late, especially if the lender reports to the credit bureaus.
Learn More: How To Get a Personal Loan
No-credit-check loan alternatives
- Bad-credit personal loans: Some online lenders have more lenient credit requirements than others, and bad credit loans are available. For example, Upstart, a Credible partner, only requires a minimum credit score of 300. A hard credit check is required for these loans, however, and that could drop your score by a few points temporarily.
- 401(k) loans: If your plan allows, you can borrow a portion of your retirement savings. You must repay the loan with interest to avoid penalties, but a credit check is not required.
- Friends and family loans: Borrowing from friends or family is another way to get cash quickly without a credit check. Just make sure you budget for repayment, or you could harm the relationship.
- Credit-builder loans: Credit-builder loans are designed to help you build credit. Typically, the money you borrow is locked in a savings account until the loan is repaid. However, some credit-builder loans, like MoneyLion’s Credit Builder Plus, offer a portion of the funds upfront.
FAQ
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