A no-credit check loan seems to be the only way to get quick cash if you have a low credit score or no credit history. However, some no credit check loans are risky, especially if they have triple-digit interest rates and short terms.
New financing options such as "buy now, pay later" and cash advance apps that allow access to cash without a hard loan request are alternatives to no-credit borrowing.
Regardless of the type of no-credit-check financing you're considering, research the lender and interest rates—and create a loan repayment plan before you borrow.
What is a no credit check loan?
A lender without a credit check does not check your credit history or creditworthiness when deciding whether to grant you a loan. Omitting credit checks is common among payday lenders and other companies that offer themhigh-interest loans.
These loans are often a few thousand dollars or less and can be used to cover an emergency or to fill an income gap. They usually have short repayment terms of a few weeks or months.
Not knowing your credit history makes the loan risky for the lender, and many installment lenders with no credit check offset that risk by charging sky-high feesannual percentages. The short maturities of the loans can also make timely repayment difficult, potentially leaving borrowers in a debt cycle.
" MORE:What is the difference between a soft and hard loan request?
4 credit options without a credit check
Installment loan without credit check
Loans without a credit check are rife on the Internet, and borrowers who choose this option should take the time to compare different loans. NerdWallet has reviewed the following no credit check lenders that offer different loan amounts and rates.
Interest rates on no credit check installment loans often reach hundreds of digits, and the total interest paid can be more than double the amount originally borrowed. If you cannot make payments, the lender may offer to refinance the loan for a larger amount or longer term, ultimately making the loan more expensive. Consider this type of loan as a last resort after exhausting everythingAlternatives to high-interest loans.
OppLoans are short-term loans ranging from $500 to $4,000 with terms ranging from nine to 18 months. The rates are up to 160%, making this an expensive loan best reserved for emergencies.
OppFi, the lender that offers OppLoans, reviews applicants' bank account transactions to assess their monthly cash flow. Instead of a hard credit deduction, the lender reviews an applicant's Clarity Services report, which contains information about consumers with low credit scores.
OppFi reports payments to the big three credit bureaus, meaning that making payments on time will help you build credit, while late payments will hurt your credit score.
" MORE:Read NerdWallet's OppLoans review
To get a loan from OppFi you need:
Monthly minimum gross income of $1,500.
A bank account with at least 40 days of history.
To receive paychecks through direct deposit.
Possible Finance is an app that provides loans ranging from $50 to $500 to consumers with bad or no credit. Repayment periods are up to eight weeks and payments are made in bi-weekly installments. Potential rates can reach 240%, which is extremely high compared to the 36% recommended by most consumer advocates.
Possible reviews applicants' bank account transactions to determine if they qualify and their loan amount, but the lender does not perform a hard credit check.
" MORE:Read NerdWallet's potential financial rating
To get a loan from Possible Finance you will need:
A social security number.
A government-issued ID, e.g. B. a driver's license.
A positive bank account balance with recent deposits.
At least three months transaction history.
Cash advance apps with no credit check
Cash advance apps offer up to a few hundred dollars to help consumers bridge the income gap between paychecks. You apply for an advance in the app, and the app provides a repayment date—usually your next payday.
These apps don't do hard or soft credit deductions; Instead, they check your bank account transactions to see if you will receive an advance and how much. Earnin is an example that does not incur a fee to use.
Earnin is a mobile app that allows borrowers to withdraw up to $750 from their paycheck before payday. The app has no mandatory fees, but there are optional tips and fees for same-day funding.
Earnin requires proof of time worked, either through an electronic timesheet or by sharing your location with the app.
" MORE:Read NerdWallet's Earnin review
To get an advance from Earnin you will need:
Be at least 18 years old and a US citizen.
A valid social security number.(Video) When To Get A Personal Loan (And When Not To!)
A regular salary plan.
To receive at least 50% of your paycheck by direct deposit.
A fixed place of work or an electronic timesheet.
" MORE:Compare cash apps
Buy apps now, pay later with no credit check
"Buy now, pay later" is a financing option that splits the cost of a purchase when shopping online or in-store. The most common BNPL loan uses the pay-in-four model: you pay 25% of the purchase at checkout and the rest in three equal installments every two weeks.
BNPL companies usually only perform a soft loan deduction. Afterpay is a BNPL app that is widely used and good for first-time users.
Afterpay splits purchases from $200 to $2,000 into smaller payments. No interest is charged, but late fees are $8.
Afterpay only carries out a gentle credit check when the application is submitted. The app splits your grocery bill into four equal payments - one is due today and the other three are due in bi-weekly installments.
" MORE:Read NerdWallet's Afterpay review
To use Afterpay at checkout, you need:
Be 18 years of age and a US resident.
A verifiable email address.
Being authorized to use the credit card, debit card, or checking account used to make the purchase.
" MORE: Buy now, pay later Compare apps
Summary of lenders without a credit check
type of loan
High-interest installment loan.
$500 - $4.000.
59,00 % - 160,00 %.
High-interest installment loan.
$50 - $500.
54,51 % - 240,52 %.
Can charge 2%origination fee.
cash advance app.
$100 - $750.
Buy now, pay later app.
$200 - $2.000.
Late Fee: $8.
How to buy loans without a credit check
If an installment loan with no credit check is your best option, here are some tips to avoid a predatory lender.
Look for the APR.An APR will help you evaluate the affordability of the loan and compare it to other loans. Lenders are required by law to disclose the APR of the loan.
Find a lender that will assess your ability to repay.Verifying your bank account information, performing a soft loan deduction, checking alternative credit bureaus, and requiring proof of income are all signs that a lender wants you to repay the loan. A lender who doesn't check your ability to repay may expect you to have to borrow again to pay off the first loan, and so begins a debt cycle.
Understand the repayment terms.Whether you agree to pay off the money in two weeks or a few months, know your payment date and how the lender will collect the money. If the lender charges your bank account, check your budget to make sure the money is there and you're not overdue.
Check the depreciation schedule.If the loan requires multiple payments, ask for the amortization schedule, a table that shows how much of each payment goes toward principal and how much goes toward interest. Ideally, at least a portion of each payment pays back the principal.
Look for the lender's license.The Federal Trade Commission requires lenders to register in every state in which they do business. Many list their licenses on their websites.
Beware of scammers.A reputable lender will not ask you to pay before you get a loan. If the lender asks for a gift card or cash before lending money, it's probably a scam.
" MORE:Know the signs of predatory lending
Credit alternatives without a credit check
Ask someone you trust to help you pay a bill, pay rent, or find cash for groceries. This may be difficult to ask for, but it protects your credit and keeps you from getting a deal with a high-interest or payday lender. You and your family member can sign a contract that details the amount of the loan, the term, and the repayment terms.
" MORE:How to borrow and borrow from family
If reducing a credit card bill, rent, utility bill, or mortgage payment would provide enough relief for a month or two, ask about a payment plan. Some creditors and utility companies have hardship forms you can use to apply for an extension, but you may need to contact your landlord or lender.
Credit union loans
Manycredit unionsOffer small personal loans starting at around $500. To qualify you, information other than your credit history may be considered, such as: B. Your history as a member. Federal Credit Union cap rates for personal loans at 18%. Some credit unions also offer alternative payday loans, orPALs, which are small dollar loans with a maximum of 28% APR.
capital goods fund
capital goods fundaccepts borrowers with little or no credit history for emergency loans up to $1,500. The lender does not require credit but will check your credit history. Capital Good Fund also provides loans for immigration expenses and home weather protection in some states. With interest rates ranging from 5% to 16%, Capital Good Fund loans are a good option for consumers living in states served by the lender.
Some online lenders consider borrowers with bad credit—even those with FICO scores below 600. To help you qualify, they consider additional data like employment status and outstanding debt. Loans with bad credit have higher interest rates, but typically no more than 36%.
" COMPARE: The best installment loans
Check if you pre-qualify for a personal loan – without affecting your credit score
Just answer a few questions to get personalized rate estimates from multiple lenders.
Learn more about pre-qualification
Example of a loan without a credit check
A one-year loan of $2,000 at an APR of 36% has monthly payments of $201. The same loan from an unchecked lender at an APR of 200% would net you $396 a month — nearly double the cost.
" MORE:Calculate your installment loan payments
Here are examples of the same loan being repaid at different APRs.
Example of effective annual interest
Excellent (720 or higher)
Bad (629 or lower)
No credit check