It is possible to borrow without relying on your credit history if your credit prevents you from getting a loan, but beware. These loans are expensive and generally only make sense if all other options are not on the table. In other words, your back is against the wall.
Loan without a credit check?
This type of loan is pretty much what it sounds like – ‘almost’ are the keywords. The lender will typically try a credit check on you, but not a “hard” check to determine your actual creditworthiness. They’ll do a ‘soft’ check, more or less, to determine if you exist and to confirm your address and things like that.
Loans without credit checks are usually short-term loans, and you have the money relatively quickly. These are not loaning that you repay over several years. A few weeks or months are more common, but loan terms can be as long as two years.
Typical Requirements for Loans Without Credit Check
You can’t just reach out and expect a lender to drop cash into it knowing nothing about you, which is why they generally do a soft check. Be prepared to confirm your identity and other information at least.
Age requirements usually apply: you must be at least 18 years old but not older than 65 years. You must be a US citizen. You must have a job or some other source of reliable income. You must provide contact details. And you must have a bank account.
Do you need one of these loans?
In general, it is best to avoid no credit check loans unless you are really out of options. They should not buy “wants” or luxuries – they are best reserved for severe needs. This kind of loan can create sense if you need to repair your car to continue working and earn a living or if you need to pay for a necessary medical procedure that you can’t finance through any other means.
No credit check loans are very similar to payday loans that are also expensive short-term loans. Many ads for loans without credit checks are just ads for payday loan programs. These lenders do not make loans based on your creditworthiness. They instead look at your income and assume that you will keep your job long enough to pay off the loan.
Find a lender
The internet may be your first, best option. Some online lenders work specifically with people with bad credit, and they are usually better known than that local guy on your street corner. Zolve is one such lender that offers credit card for immigrants and students with no credit history.
Some credit unions offer their members much more affordable payday loans, so check your eligibility before biting the bullet for credit without a credit check.
Check the background and history of any lender you are considering. The Federal Financial Protection slick cash loan might be an excellent place to start, and an Internet search will likely turn up comments and ratings from other borrowers.
The most common loan scam with no credit check is charging fees when nothing takes its place. Application fees are not unheard of but beware of lenders who want upfront fees as you may not get what you pay for.
Fees must be clearly stated. Reputable lenders will tell you what to expect, while scammers will take what they can as long as you give it to them. All costs must be deducted from the proceeds of your loan after your loan has been approved.
Remember that these loans are always expensive because they are risky loans for a lender. You probably won’t get the whole picture if you don’t see hefty costs, such as high-interest rates or loan processing fees that are deducted from your loan proceeds.