Can You Get a Personal Loan with No Credit Check?

Lending institutions like to do a credit check before they allow customers to access their loan facilities. This allows for security, since the assurance can be given that the customer is willing and able to pay back the loan.

It’s a natural part of the process, and it is one of the components of the processing fee that you are required to pay when you make your application. While this process gives the lender the necessary assurance, it can be a turn off for potential borrowers.

You see, there are many people who either have no credit history or a poor credit score. Accessing a loan is a struggle for both groups of persons, and so they may be scared to apply.

Consider a student who has just completed a university degree, for example. Such a person is not likely to have any credit history. This means that there is a huge disadvantage where acquiring a loan is concerned.

While the credit history situation above does create a problem, there may be hope yet. What if there were a way to need no credit check for loans?

There are loans out there that don’t require the check, and these offer solutions for those who have trouble getting the normal ones. So it looks like you may not have to give up yet if your credit standing is insufficient.

A Word to the Wise

Remember that credit checks are done to offer the lending institution security. It is a statement that is proof of a borrower’s ability to repay. If that step is being eliminated, then the source of security must be replaced.

You typically see this in the terms that are established for these kinds of loans. While the credit score requirement is gone, there are other terms involved that make for a stricter experience. One common requirement that fits this bill is the introduction of higher interest rate payments than usual.

It’s important to mention that you also need to verify that the institution you plan on borrowing from is a legitimate one. Many of the supposed businesses that are offering these loans are simply scams waiting to deprive you of your hard-earned money.

Remember that, while getting your loan is important, it’s also just as important to ensure that you are getting the best deal possible. Loan repayment is one of the most expensive types of debt, so the cheaper it can be for you, the better off you are in the long run when it’s time to start making those payments.

Examples of Loans That Require No Credit Check

You should note that, even if your credit score is bad, there are some lending institutions that are willing to work with you as necessary to try to negotiate the best terms. This is because a horrid credit score is easier to work with than none.

People with bad credit have an advantage because there are other factors that can be used to determine loan eligibility instead of just the credit score. Some of these include the balance maintained in a savings account and a person’s employment history. Whatever the case is, here are a couple of loan types that you’re more likely to get without a credit check being needed.

Payday Loans

These loans are exactly what they sound like. The sum that you’re allowed to borrow isn’t large because you’re expected to pay these loans back in full upon receiving your next paycheck. This means that you’re not usually allowed to borrow more than 30% or so of your net salary.

Auto Title Loans

These loans require you to ante up the title of your car as security. Of course, this means that you need to own the car that you plan on using for this purpose. There are some institutions that are willing to accept your application if you don’t, but you should be advised that this is a rare occurrence.

Once you are approved for such a loan, there are usually extra precautions that are taken by the lending institution so that you don’t default on your payment. For example, you may need to make a copy of your keys to provide to the lender. You may even need to have a GPS installed so that the vehicle can be tracked.

The device is typically installed by the lender. Regardless of what additional actions you’re required to take, the point is usually to make repossession of the vehicle a feasible and easy action, should you default on your payment.

Installment Loans

This is one of the most common types of personal loans that you can get your hands on. You may think that the term sounds unfamiliar, but it is very likely that you’ve encountered or heard of such loans in the past.

These loans allow you some flexibility in what you can do with them. One of the most common reasons people get these loans is to consolidate existing debt. There is a bit more benefit here, since the figure that you’re allowed to borrow tends to be larger than that for other loan types, such as payday loans.

Additionally, the repayment terms that you are given tend to be much more favorable too. For example, you could have anywhere between one and eight years to repay.

These loans most commonly have a fixed payment, which means that the interest is pre-calculated. This gives a roadmap, which helps you to budget for a predictable amount monthly until you have cleared the entire balance of the loan.

Credit checks don’t need to be done for these loans, and there is also typically no collateral requirement.

Preparations You Can Make

It’s always good to be prepared before you try to apply for any of these loans, since you still technically need to prove that you are creditworthy, even though this is a no credit check-type loan.

The alternative to this is the presence of certain documentation that can be used in the place of a traditional credit check. The idea gere is that you are proving that you are financially stable and responsible enough to make a prescribed payment on a monthly basis. Some examples of documentation that is useful to this end are:

  • Records of your education
  • Bank statements for your accounts
  • Any documentation you may possess on your credit card debt
  • Any borrowing history that you may have
    • Any loan or extended credit source is feasible here, since the point is showing that you have a good payment history. The progress that you made in paying these loans off is very important.
  • Any documentation that proves that you are currently employed and collect regular paychecks
    • A job letter or your last few pay stubs will typically suffice here.
  • Any tax return documentation for at least the past two years

Lenders That May Not Require a Credit Check for Loans

There are four main sources that you can acquire these kinds of loans from that don’t require any credit check to be performed.


Banks are the most common providers of loans. However, these loans are not easy to come by. Based on a bank’s business model and workflow, it usually opts to find a situation with the most security possible, so a credit check is almost always likely.

There are banks, however, that are willing to offer customers unsecured loans that don’t require a credit check to be performed. You should know that banks are some of the most expensive loan providers in this regard, so it may be a good idea to investigate some of your other options before you settle on going this route.

Online Lending Institutions

Online lenders are not as popular as some of the other options that you have. This is because they are one of the newer loan provider types. Be that as it may, these lenders specialize in dealing with people who have a bad credit score or no credit history.

Therefore, there are usually multiple loan options that simply forego the performance of any kind of credit check. You do sometimes need at least one account in your credit report though, so bear this in mind.

However, emphasis is placed on other facets of your life that prove that you are a trustworthy person who can repay the loan. Note, however, that interest rates can be figures such as 35%-40% per annum, so things can get expensive.

Payday Loan Organizations

These organizations specialize in providing small loans to individuals. These loans can be very expensive, so people usually use these offerings as a last resort.

A payday loan may not seem very expensive to you because of the short repayment period. However, if you were supposed to look at the annual percentage for such a loan, you may end up with a crazy figure, such as 300% or more.

Credit Unions

A credit union is always your best bet where loans are concerned. It is very unlikely that you can’t find any alternative with better options. The good thing is that these organizations are also willing to provide loans to their members that require no credit check.

There are many customized loan types that you can access with terms that are more than favorable. In many instances, the information that is used in your consideration is an alternative to your credit score.

Note, however, that many credit union offerings are based on how long you’ve been a member and how much you have in your account. Even if you’re not ready for a loan yet, it’s usually a great idea to get your membership going so that you can access these facilities in the future.

There are many different lending sources that require no credit check for loans. Be that as it may, there are usually various conditions and implications that surround getting the loan that you always need to be in the loop about. However, you don’t want to end up in a never-ending cycle of debt because of a loan that you took out, so always be prepared and ask the necessary questions before you put pen to paper.

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