No credit check loans are ideal for people with poor or no credit history and those that don’t meet the requirements for traditional loans. They come in handy when you need fast money for emergencies like medical, natural disasters, unexpected car repairs, job loss, unexpected home repairs, funeral expenses, and more.
Lenders offering no credit check loans don’t conduct hard credit inquiries on credit reports. Your loan application review and approval decision may depend on your income, employment status, and others. This article outlines five loans that don’t require a credit check.
1. Payday loans
A payday loan is a high-cost, short-term loan typically due on your next payday. They don’t involve credit checks, making them high-risk for the lender. As such, payday lenders charge high fees and interest rates. However, the absence of hard credit checks doesn’t mean you automatically qualify for the loan. Payday loans, like e-transfer payday loans, have specific criteria you must satisfy, including age, online banking history, minimum monthly income requirement, pension income, and more. Nonetheless, payday loan eligibility criteria may vary from one lender to another and based on your area’s laws.
2. Bad credit loans
Bad credit loans belong to the personal loan category and are designed for those with low or no credit history. With a poor credit rating, lenders consider you a high risk, meaning the loans you’ll likely qualify for are high interest. Bad credit loans are ideal for people with emergency financial needs and those who want to refinance high-interest debts or consolidate debt payments. While the eligibility criteria for bad credit loans are flexible, they may differ from one lender to another and from state to state. Repaying your loan can help you build a positive repayment history, helping you fix your credit score.
3. Car title loans
Car title loans are secured, short-term loans where you use your vehicle as collateral. They have short repayment terms, typically 15 to 30 days, high fees and interest rates, and may result in the loss of your car. Should you fail to repay within the agreed timelines, your lender may repossess your vehicle. Car title loans don’t involve credit checks. However, you can only apply for one if your car title is lien-free. Since car title loans are no credit check loans, they’re a good option if your credit rating isn’t good enough to secure a traditional loan or you’ve unsuccessfully explored all other alternatives.
4. Pawn shop loans
Pawn shop loans, also called collateral loans, involve borrowing funds from a pawnshop and giving something like jewelry, TV, and others as collateral. The loan is issued based on your item’s appraised value. Failure to repay the loan within the agreed time, the lender can keep your item and resell it to recover their money. Repaying these loans doesn’t contribute towards building your credit history. Pawn shop loans have a few requirements and don’t include credit checks.
5. Loans from family and friends
Loans from family and friends are an excellent option if you have low or no credit and can’t afford the exorbitant rates charged by bad credit lenders. They don’t involve credit checks and may come at a low rate or interest-free. However, failure to repay the loan as agreed can destroy your relationships.
Endnote
No credit check loans are ideal for people with poor or no credit and those that need money quickly. Familiarize yourself with these loans that don’t require credit checks and learn the pros and cons of each before applying.
