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Do you need some quick cash but have a dreadful credit score? Do not worry, because we have you covered.
In this article, we will be discussing the best loan options and alternatives for people like you. We have developed a list of the best no-credit-check loans in order to help you get your hands on a short-term loan without going through a credit check.
Almost all traditional loan providers, like banks and credit unions, will require you to go through a credit inspection before deciding to work with you. With that being said, there are financial institutions out there who are willing to look the other way and ignore your bad credit scores. However, this will come at a hefty price, with higher interest rates and bigger fees to counter the danger of lending to a risky customer.
If you are tied for cash, the companies on our list are trustworthy and reliable sources to turn to. Just make sure to calculate the risks and follow our guidelines on making the best out of your unfortunate situation.
There is also a bright side to taking out a bad credit loan. You can improve your credit score by making timely payments and positively influencing your minimum credit score. So without further ado, let us dive into the list.
Top 5 Best Direct Lenders That Provide No-Credit-Check Loans:
- MoneyMutual – Best Overall Online No-Credit-Check Loans, Top Ranked
- BadCreditLoans – Most Popular Credit Loans with Bad Credit Score
- CashUSA – Get Loan with No Credit Online
- Personal Loans – Best Secured Personal Loans with No Credit
- Credit Loan – Best Payday Loans Option for Instant Cash
#1. MoneyMutual – Best Overall Online No-Credit-Check Loans, Top Ranked
Brand Overview
Founded in 2010, MoneyMutual has provided countless loans to those who are in dire need. The company is not a direct loan provider; instead, it works as a marketplace that connects borrowers and lenders willing to work with them.
According to MoneyMutual, four out of ten people living in the U.S. could not come up with $400 in a case of emergency. However, the advantage of working with a lending service like MoneyMutual is that you get access to a number of lenders by just filling out a simple online form.
Forget stacks of paperwork and visiting multiple offices to end up getting turned down anyway. MoneyMutual provides a convenient way to assess your options and get approved for an online loan.
Features
- Streamlined Process
The best feature about MoneyMutual is how fast and efficient the whole application and approval process is. You start by filling out a simple online form, submitting information like name, age, address, employment status, phone number, email address, etc. There are a few requirements like being at least 18 years of age, having an active bank account, and having a monthly income of at least $800.
When you are done with the form, your information gets sent out to a network of over 60 lenders for review. If a lender is willing to work with you, they will contact you and ask you to finish the process on their website. If you agree to the online loan terms and accept the deal, you will have the money in your account in one business day.
- Compare Lender Rates
A cool thing about MoneyMutual is that they will not force you to work with a single lender. Because MoneyMutual represents a variety of lenders, individuals may get short-term loans even if they have poor credit ratings.
With MoneyMutual’s financing options, you will be shown many lenders that are prepared to work with you to find an agreement that works best for your financial situation, giving you options to choose from.
- Many Types of Loans
MoneyMutual’s network of lenders provides many different types of online loans to choose from, depending on your situation. Namely, you can choose online payday loans, installment loans, cash advances, and loans for bad credit.
Pros
- Free service
- Well-designed website
- Streamlined application process
- Loan information and educational resources available
- Different types of loans
- Number one service for short-term loans in the U.S.
- Network of 60 lenders
- Funds transferred in 24 hours
Cons
- Only available in the U.S.
- Must have a steady source of income
- Not available in the states of NY and CT
Customer Experience
MoneyMutual has worked with over two million people since its creation, speaking volumes on the quality of service this company provides. People seem to love how easy the whole lending process is and how fast they get the funding, all by a service that is entirely free of charge.
Moreover, many of the customer reviews were from returning users, meaning they are willing to use the service again. The negative reviews we read were mostly from people who were disappointed with getting high-interest rates, but that is just the industry norm for people with bad credit scores.
#2. BadCreditLoans – Most Popular Credit Loans with Bad Credit Score
Brand Overview
Next up, we have another company that works to connect borrowers with lenders. BadCreditLoans provides loans that range from $500 to $10,000, with loan repayments ranging from 3 to 36 months.
BadCreditLoans is known as a service that will find a lender for virtually any person, regardless of their credit. You can use a loan for reasons like debt consolidation, rent, medical expenses, holidays, vacations, business loans, taxes, car repairs, and much more. Moreover, the service provides a lot of information regarding short-term loans, assisting you in making an educated decision.
With the information provided on the site and no obligations to close a contract with any lender whatsoever, BadCreditLoans is the perfect service for getting an online loan and making a responsible choice.
Features
- Free Service
While most businesses will charge consumers for the service they provide, BadCreditLoans will not cost you anything. You can get unlimited offers and compare lenders, and you still will not be charged any money. If you decide to proceed with a lender, BadCreditLoans will get a small commission on the deal.
- Flexible Loan Terms
BadCreditLoans offers a lot of variety in terms of how much money you can request and the repayment terms. You can request up to $10,000, which is a hefty sum. Also, the repayment terms are negotiable and can vary from a few months to a few years, with APRs ranging from 5.99% to 35.99%.
What this means for you is that as long as you meet the simple requirements, you could get a slew of offers from different lenders.
- Compare Options
By filling out a straightforward application form, you will get connected to a vast network of lenders. What is cool about BadCreditLoans is that you can compare options and rates from various lenders without making any kind of commitment. Make sure to have a budget planned out because you might get a variety of offers in a matter of minutes.
Pros
- Free to use service
- Compare your lender options side-by-side
- Flexible terms
- Loans from $500 to $10,000
- Funds available in 24 hours
- Simple, three-step application process
- Information regarding loans and lenders available
Cons
- Not an actual no-credit-check loan
- Bad credit holders can only receive small loan amounts
Customer Experience
Customers seem to like the service at BadCreditLoans because it is one of the few lending services that truly provides loans for people with abysmal credit scores. Many people said that even though the company asks for detailed personal information, the hassle is worth it because at the end of the day, you can get a much-needed online loan.
We also found a couple of Trustpilot reviews praising the excellent customer service, saying the support reps helped explain the whole lending process. All in all, customers enjoyed the entire experience at BadCreditLoans and were grateful they got funded in a concise time frame while having a poor credit rating.
#3. CashUSA – Get Loan with No Credit Online
Brand Overview
CashUSA is widely regarded as one of the most trusted resources for fast cash loans. One of the advantages of CashUSA is having a huge network of lenders that consists of not only state but tribal lenders as well. Tribal lenders are known for having more notorious interest rates, but if you need cash for an emergency, even bad loan terms will suffice.
To get a personal loan at CashUSA, you simply fill out an online form. If your online payday loan request is approved, you might have the money you need the next business day. Having your bank account and personal information ready to go will speed up the whole process. With CashUSA, you can get a traditional short-term loan or apply for a line of credit.
Features
- Education Center
One of the most prominent features of CashUSA’s website is the extensive educational resources they offer. The information is provided in the form of small articles, categorized into four sections — Credit, Finances, Debt, and Banking.
If you are interested in learning more about loans, budgeting, personal finances, and how to improve your credit score for the future, this is the place to be.
- Simple Requirements
To get funded fast, you will need to meet specific requirements. You start off by filling out a simple form, where you will need to provide info about the amount you would like to borrow, your age, proof of citizenship or residency, name, date of birth, address, employment status, and basic bank account information.
The online payday loan request is then forwarded to the lenders available, and you should be getting offers pretty soon. If you find an offer attractive, you can head to the lender’s website to finalize the deal. Make sure you read the terms and conditions of the deal before agreeing because after you sign the contract, there is no going back. When you sign and finalize the deal, you will have the money in your checking account the following day.
- Security
For CashUSA, security and privacy are of the utmost importance, and the company is committed to safeguarding the personal information of those who contact them for assistance. CashUSA customers may rest easy knowing that their personal information is always safe.
Pros
- Great educational center
- Fast application process
- Both State and Tribal lenders
- Encrypted site for security
- Loans from $500 to $10,000
- Get offers in a matter of minutes
- Funding directly to your bank account in 24 hours
- People of all credit types accepted
Cons
- May share your information with third-parties
- Asks for a lot of personal information
Customer Experience
Customers felt satisfied with the sheer number of offers they received. Moreover, people really appreciated how quickly the whole process was completed, and they got their funding very fast.
Many people regard CashUSA as the best service when it comes to getting smaller loan amounts. However, we found some complaints from people who thought the company was asking for too much personal data and sending them too many promotional emails.
#4. Personal Loans – Best Secured Personal Loans with No Credit
Brand Overview
Personal Loans is a company dedicated to providing a quick and secure way to access funding without performing “hard pull” credit checks. The service works as a loan aggregator that matches lenders and borrowers.
Personal Loans is also available 24/7, providing loan services night and day, and even offers more considerable loan amounts of up to $35,000. Moreover, if Personal Loans fails to connect you to a lender, they give you the option to forward your information to third-party lenders, so you can continue to search for the best loan offers.
The service is a great resource for first-time borrowers, thanks to the thorough explanations provided at each step. It is like talking to a loan consultant at a bank. Once you have completed the quick and simple process, you will start getting online loan offers in a matter of minutes.
Features
- Good Standards
Personal Loans is a member of the OLA (Online Lenders Alliance), meaning it has a commitment to transparent and fair consumer practices. The OLA membership serves as a safety assurance for your information and the lending offers you might get.
Basically, Personal Loans has to comply with all federal regulations and laws to protect its consumers from illegal online lending activities. In addition to ensuring members provide customers with proper cancellation procedures, the OLA enforces that members do not publish deceptive lending information and that third-party affiliates are managed with fairness.
- Different Loan Types
Personal Loans offers three types of loans, allowing you to find the one that will best match your needs. You can choose from traditional bank loans, installment loans, and peer-to-peer loans. Each type of loan has different upsides and downsides and requires different credit scores to become eligible.
You can read about the difference between the online loans on the website, where everything is explained in detail and accompanied by additional educational info.
- Flexible Terms
Another great feature that separates Personal Loans from the rest is the flexibility in terms and options. Many companies will limit the customer with very short repayment plans and fixed loan amounts, but Personal Loans offers excellent variety for its users.
You can borrow amounts as little as $1,000 and as much as $35,000. Repayment terms also vary from 90 days to 72 months, depending on the type of loan you take out.
Pros
- Convenient loan offers available
- Loans from $1,000 to $35,000
- Extensive network of lenders to choose from
- Different loan options
- Great educational resources
- Funding directly to your bank account in one day
- Flexible repayment options
- Reasons provided for the required information
Cons
- You may not get approved
- Not a direct lender
Customer Experience
Personal Loans has some of the highest Trustpilot ratings out of all the companies on our list. It is rated 4.6 stars, and many customers were delighted with the service they received. People liked how easily navigable the site is, how every step of the process is explained, and that reasons are given for the information they require.
Moreover, customers were positively surprised by the low-interest rates they received while having horrible credit scores. Top that off with a fast approval and funding process, and you have a fantastic service.
#5. Credit Loan – Best Payday Loans Option for Instant Cash
Brand Overview
Last but not least, we have a company that has been around for a while — Credit Loan. The service has served more than 700,000 people since its foundation back in 1998. Credit Loan is an excellent service that aims to provide the best possible loan terms while keeping your privacy and security intact.
The service works in similar ways to others on our list by connecting you to lenders instead of being a direct lender. What is nice about the way Credit Loan conducts business is the soft pull it performs on your credit history, making sure your credit score is not harmed during the application process.
Credit Loan provides loan amounts of up to $40,000, but these only apply to customers with good credit scores, meaning the maximum you can get is still a solid $5,000 loan. Since its inception, the service has helped educate and provide online loans for more than 30 million visitors, earning it praise in publications like Forbes, the Wall Street Journal, CNBC, and many more.
Features
- Blog, Guides, and Reviews
Credit Loan stands out from other companies on our list by having a regularly updated blog that is filled with guides on taking out loans and education about personal finances. It also has lender and banking review sections on the site that provide information about the experience when working with different lending institutions.
In addition, we were amazed by the sheer amount of articles on the blog and how they are spread out through different categories.
- Helpful Tools
Credit Loan has helped educate countless people in need of loans, and it offers the tools to help you make an informed decision. Some of the tools include financial calculators, loan calculators, mortgage rates, etc. Having these tools together with the blog has solidified Credit Loan as a trusted source when it comes to lending practices and loan analysis.
- Security
Many lending services claim they have great security features, but Credit Loan actually does and has the certifications to prove so. The service has a TRUSTe verification, proving they take good care of your personal data. Moreover, the website navigation and browsing are secured and certified by McAfee SECURE.
Pros
- In business since 1998
- Bad credit loans ranging from $250 to $5,000
- Funding in one business day
- TRUSTe verified and has a McAfee SECURE verification
- Excellent platform for smaller loan amounts
- No strict income requirements
- A++ rating with the BBB
Cons
- Does not serve customers from New York or Connecticut
- Users with bad credit are limited to small loan amounts
Customer Experience
Customers appreciate the website’s security features and take comfort in knowing their privacy is safe. Moreover, the interest rates for people with bad credit scores are very reasonable, and the funding times are very short. Users unanimously agree that this is one of the best services when it comes to taking out small loan amounts.
Many customers have stated they would use the service again and that they would recommend the Credit Loan platform to anyone in their position.
Factors to Consider When Looking for a No-Credit-Check Loan
There are many things to consider before taking out a loan. So if you are looking for the best possible loan, you should keep in mind the following factors.
- Eligibility Requirements
Although we are discussing loan options that do not require a credit check, most services will still perform some kind of credit check and will have a minimum credit score threshold set. Usually, lenders working with these services require people to have a FICO score above 600 to consider them for a loan.
There are also essential factors like your debt-to-income ratio, which is basically how much you owe versus how much you earn each month. Having a steady monthly income is a must for you even to be considered for a loan.
Some lenders might look at other factors like your savings account to determine if you are financially responsible. If you have a good savings account or have no significant debt, you will most likely get a loan despite having a bad credit score.
If your credit score is beyond saving, lenders might require you to add a co-signer to the deal. A co-signer will bear the responsibility of the loan together with you and might get you better loan terms if they have a solid credit score. But, failing to repay the loan brings them into trouble, and they might have to repay it for you. So, be careful because you might lose your relationship with the person that has co-signed the loan.
- Customer Reviews
One very important factor you should always look for is customer reviews. In this day and age, only quality service is expected, and if people receive subpar service or feel like they have been scammed, they will not hesitate to voice their frustration through a review.
Reading customer reviews and researching a company should give you an idea of if it is a good fit for your situation.
- Terms and Conditions
The most important thing you should do before accepting a loan offer is to go through the deal’s terms carefully. The terms include things like APR, the total amount to be repaid, restrictions, and the repayment period. Make sure you clearly understand everything before accepting.
- Interest Rates
When taking out a loan, your top priority should be a reasonable and affordable interest rate. Make use of the free services to get as many loan offers as possible, which will give you an idea of what kind of interest rates you should expect. Your best bet is to always take the loan which offers the best interest rate.
Of course, interest rates are very dependent on your credit score. The higher your FICO score, the lower interest rates you will receive. There are also different kinds of interest rates, such as fixed and variable ones. Fixed interest rates will remain the same through the loan repayment, while varying ones can fluctuate depending on the market index rate.
- Additional Charges
There might be additional fees that come with taking out a loan, and these have to be stated in the loan agreement. Some of these include origination fees, commencement, processing fees, late payment fees, payments in advance, transaction fees, etc.
Most lenders will not charge you an origination fee, but many will charge you late payment fees. There are lenders who do not charge late fees, but usually, lenders will charge you a late fee ranging from $10 to $30. Make sure to pay your installments on time so you can avoid these kinds of charges.
Steps You Can Take to Improve Your Chances of Getting a Bad Credit Loan
Even people with stellar credit scores should follow these easy steps to get the best deal possible. Having a bad credit score does not take away your right to bargain or prepare adequately. So, to best prepare, consider the following steps.
- Be Wary of Scams
If this is your first time trying to get a loan online, you are a prime target for loan scammers. Here are a few tips on how to recognize a fraudulent lender.
A scam lender will not require your payment history, which is a big red flag. Scammers will usually instantly ask you about origination fees, transaction fees, and advance payments. Scammers might also demand payments using your prepaid cards.
Suppose you have any suspicions regarding a lender. Head on to their website and look for a license number in the footer of the site. If you cannot find one, this usually means the lender is not licensed in your state or country, and it is most likely a scam.
- Check Your Credit Report
Get your credit report from annualcreditreport.com. Carefully study your credit report, and look for any mistakes. If you detect any errors, make sure to get them corrected to improve your credit score. You can clear up any disputes by addressing them with one of the credit bureaus.
Even if there are no mistakes in your credit report, it is always a good idea to have an understanding of where you stand and what your credit score is. By having this information, you can get an idea of what kind of loan terms to expect, and you can start forming your budget.
- Assess the Potential Interest Rates
Make use of free services to get a rough idea of what interest rates you should expect. Many lenders offer pre-approvals, which are basically soft pulls that do not put any strain on your credit report because they are not hard investigations. Look for the most suitable interest rate and stick to it, choosing the lender quote which seems the most captivating.
- Create a Payment Plan and Budget
Now that you know what your credit report looks like and you have an idea of what kinds of interest rates you might get, it is time to make a plan. First of all, do not take more money than you need. Getting a bigger loan amount might seem appealing at first, but all you are doing is getting yourself into more unnecessary debt.
So, create a monthly budget for all your expenses, and see how the loan repayments will fit into it. Consider spending only on essential things like food, rent, debt payments, and your loan installments.
Having your monthly budget laid out will help you make your payments on time, saving you penalties and late fees. Moreover, making your payments on time will positively impact your credit history, increasing your overall credit score in the long run.
Alternative Loan Options
- Create a Frugal Budget
Try cutting back on everyday expenses. Only buy essential things, and do not spoil yourself. You can make meal preps to cut back on food spending, stop going out, and cut out as many subscriptions as you can. You can live without Netflix or spending money at restaurants for a few months.
- Ask Friends and Family for a Loan
Nobody likes being a burden on their loved ones, but if you absolutely have nowhere to turn to, ask the people close to you. We suggest treating this as an actual loan by setting payment amounts and repayment times.
Be careful of how much you ask for, as you would not like damaging a precious relationship for the sake of some cash.
- Ask Your Employer for an Advance
Depending on the relationship between you and your employer, you can ask to get an advance on your next paycheck. This can get you the much-needed cash right away, but you will have to live with less money in the following weeks.
- Liquify Your Assets
Another option is to sell some of your assets. This can be stocks and bonds, company shares, or even jewelry. You can sell your antiques, jewelry, or prized possessions at a pawn shop.
- Work on the Side
You could also try making some small side hustles. For example, you can deliver pizzas during nighttime or drive Uber to make a little extra cash.
Frequently Asked Questions: No-Credit-Check Loans
Q1. Is it possible to get a loan without a credit check?
Most lenders will perform some sort of credit check, regardless of whether they operate online or through a store. But, the companies on our list will primarily perform soft pulls, which means they will not dive deep into your credit history, leaving your credit score unharmed.
Some lenders may not perform a credit check and will instead use an alternative method to verify your eligibility for a loan. Some of these methods include only going by basic bank account information, using artificial intelligence to determine your eligibility, or just using your income statements to decide to work with you.
Q2. How will taking out a bad credit loan affect my credit score?
Every time you get a credit loan, it will indeed have an effect on your credit score. This does not necessarily mean it will have an adverse impact, though. In fact, many short-term loans prove to have a positive effect on your scores. By making timely payments on your loan installments, you could improve your credit repayment history and, thus, increase your credit score.
Q3. How can I find out what my credit score is?
If you do not have an idea of your current credit score standing, you have the right to obtain a yearly credit report from the three official bureaus. To get a credit score and see your credit history, you should head to annualcreditreport.com.
Your credit rating is determined by the FICO score, a three-digit number that is calculated based on the data in your credit report. You can view the FICO score as a condensed version of those reports, and the higher your score, the more favorable the loan terms you receive.
Q4. How do you know whether you have a good or a bad credit score?
The FICO score ranges are as follows:
- 300 to 580 is considered poor (risky borrower)
- 580 to 670 is considered fair (below average)
- 670 to 740 is considered good (average, slightly above average)
- 740 to 800 is considered very good (very dependable borrower)
- 800+ scores are considered exceptional (excellent loan terms)
- Usually, a score of 670 is the threshold for most people, with anything below it being considered bad.
Q5. Is there any way to get an actual no-credit-check loan?
There are several ways that allow you to get a loan without any kind of credit check, whether it is a soft or hard pull. These options typically come at higher expenses in the form of paying a higher interest rate or other types of fees.
Your first option is to get a personal loan from a pawn shop, where you can temporarily mortgage a valuable item or possession. If you do not repay the money you owe, the pawnshop will simply confiscate the item you secured the loan with.
Your second option would be an online payday loan facility. You can provide your income information as proof of having the means to repay the loan. Remember that these types of online loans come with hefty charges and penalties for failing to repay on time.
And finally, if you own a car, you can get an auto loan. This type of loan requires transferring your vehicle’s title to the lender. If you do not pay back the loan, you will lose ownership of your car.
Q6. Is it possible to have zero credit?
Yes and no. If you have zero credit, all that means is that there is not enough credit history for your credit score to be formed. This is known as credit invisibility, and you will get a FICO score a couple of months after you have taken out your first loan or credit card.
Q7. Are there any bad credit loans that have guaranteed approvals?
There is no such thing as guaranteed approval in the loan business. With that being said, if you look long enough, we are sure you will be able to find a lender willing to work with you. For example, most of the companies mentioned in our list are known to work with people who have bad credit scores.
Q8. Can I get a loan if I am unemployed?
Yes, getting a loan while being unemployed might seem harder, but the truth is, any type of regular income you receive can be used to meet loan requirements. This means that if you receive any monthly income, you can apply for a loan. Common sources of income can be alimony, pension, rent from properties, government payments, disability benefits, etc.
Conclusion – What Is the Best No-Credit-Check Loan Provider?
All of the companies on our list are good options for getting a loan without damaging your credit score.
However, our personal favorites would have to be MoneyMutual and Personal Loans.
We have discussed what you should look for before taking out a loan and how to plan accordingly. We hope this article helped you decide on the best no-credit-check loan option for your needs.
The news and editorial staff of the Bay Area News Group had no role in this post’s preparation.
