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Life isn't always predictable. Unfortunately, that means everybody runs into unexpected expenses from time to time. What if you have an emergency bill when your credit is low? Should you get a no credit check loan?
Yes, it's possible to get a personal loan with no credit. But a no credit check loan isn't the only option for doing so. Below, we'll go into no credit check loans, how to know if they're right for you, and how to apply for one.
How can I get a loan with no credit check?
First, find a lender that offers no credit check loans. For example, some online loans don't require a credit check. And many loans will build your credit score as a helpful bonus.
TIP
A warning about lenders
Be careful which lender you choose -- some no credit check loans are expensive. Payday loans, for example, can cost more than the money you borrow (and won't help your credit score).
We generally recommend online loans because it's easy to compare lenders (and find the best one for you) when you're shopping online.
Then, submit an application. You'll probably need to verify your identity, address, and possibly your employment. If you're planning to use collateral to get a loan (like a car), you'll need to take a few extra steps. See our guide to getting a loan with collateral for more information on that process.
Finally, make a plan to pay back the loan. This can be challenging. If you're struggling, talk with a trusted community leader, friend, or family member. Some banks offer free financial advice for their customers.
Don't feel embarrassed about asking for help if you need it. Almost everyone has needed help juggling finances, making things work when money is tight, and repaying debt. You're not alone.
What's the easiest loan to get with bad credit?
If you have bad credit, don't look for a no credit check loan. Instead, look for bad credit loans. These loans are cheaper than no credit check loans, and you can qualify for one with a low credit score. In fact, you can even qualify for some bad credit loans if you have no credit!
Where can you find these lenders? Start with our list of best loans for bad credit. There you'll find reputable lenders who charge lower interest rates than many competitors.
If your credit is too low to qualify for a bad credit loan, there are a few different loan options you could choose to pursue. All of the following are more expensive than bad credit loans -- but they don't require a credit check:
| Loan type | Pros | Cons |
|---|---|---|
| Payday loan | Anyone with a job can get one. Same day funding. | Expensive: typical APR is between 500% and 1,000%. |
| Title loan | Same day funding. You can take up to a year to pay it back. | Expensive: typical APR is between 36% and 600%. If you have trouble paying, you could lose your car. |
| Online loan | Lower interest rate than other no-credit-check options. Could build credit. | Typical APR and repayment period varies greatly depending on the lender. |
| Pawn shop | Same day funding. | Expensive: interest rates between 60% and 400%. If you have trouble paying, you could lose your collateral. |
| Secured loan | Depending on your collateral, you can get a higher loan limit. The loan term can be multiple years. Could build credit. | Requires collateral, which you can lose if you have trouble paying back the loan. |
| Banking app | The only potentially fee-free option. Some banking apps allow you to draw on money you've earned but haven't been paid yet, provided you have already verified your employment and linked a checking account for repayment. Interest rates can be as low as zero. Once your account is set up, there is no credit check for the cash advance. | Loan limits can be very low. You might not be able to use this option quickly if you haven't already set up the app and verified your account. Some apps take three days to fund loans. |
Another option is called a payday loan alternative. This is a credit union loan with a maximum interest rate of 28%, which is lower than most other options. The catch is that you need to be a member of a credit union to qualify.
How can I get a loan with no credit?
The easiest type of personal loan with no credit depends on what you're starting with:
| If you: | Try this: |
|---|---|
| Have a checking account | Online no credit loan or banking app |
| Have regular income | Payday loan, online no credit loan. or banking app |
| Own a car | Title loan or secured personal loan |
| Are a member of a credit union | Payday loan alternative |
| Own something of value that you are willing to risk | Secured personal loan or pawn shop loan |
Some online lending networks promise to approve any borrower, regardless of a bad credit score or no credit score. Be careful! Some of these no credit check loans charge 1,000% or more. When fees are that high, it can be torture to get out of debt.
But once you know your options -- including ones with low interest rates, like online loans and payday loan alternatives -- you can apply for a loan that's right for you.
The Ascent's best personal loans
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
FAQs
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You can look into a payday loan, online loan, no credit check loan, title loan, pawn shop loan, secured personal loan, banking app, or other alternative. The important thing is to look closely at the requirements and fees. If you're not careful, you may end up paying back many times the amount of the original loan. Also, some loans are secured with collateral, such as your car, that you could lose if you are unable to repay the loan.
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No. But a loan with no credit check is typically very expensive. Some people find that they are so expensive, another solution (like a bad credit loan) makes better sense. Whether or not a no credit check loan is right for you depends on your circumstances.
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Many loans fund the same day you apply, or within 1-3 days. As long as you are able to fulfill all of the requirements, such as submit a copy of your utility bill or your recent pay stubs, funding generally does not take long.
Our Loans Expert
Kimberly is a career writer and editor with more than 30 years' experience. She's a bankruptcy survivor, small business owner, and homeschool parent. In addition to writing for The Motley Fool, she offers content strategy to financial technology startups, owns and manages a 350-writer content agency, and offers pro-bono financial counseling.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The Motley Fool has a disclosure policy.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The Motley Fool has a disclosure policy.