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4 No-Credit Check Loans and Alternatives to Borrowing

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4 No-Credit-Check Loans and Borrowing Alternatives
No-credit-check loans may have rates that are triple-digit and short repayment terms. Be aware of alternatives before you take out a loan.


Last updated on Jan 17, 2023

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Table of Contents



Table of Contents





A no-credit-check loan may seem like the best way to get cash fast even if you have a poor credit score or no credit history. But , there are some loans are risky, especially if they have triple-digit interest rates and shorter repayment terms.
Emerging financing options such as "buy now or buy in the future" or cash advances apps, which give access to cash without an inquiry into your credit history, are alternatives to credit-based loans.
Whatever type of no-credit-check financing you're considering, study the lender and ratesand then make a plan to repay the loan prior to borrowing.
Is there a zero-credit check loan?

A no-credit-check lender doesn't review either your credit rating or history when choosing whether to offer you the loan. The absence of credit checks is standard for payday lenders, as well as other companies offering .
These loans usually range from just a few thousand dollars or less, and are used to pay for an emergency or bridge a gap in income. They usually have repayment terms of several weeks or even months.
The fact that you don't know your credit score makes the loan extremely risky for the lender, and many non-credit-check installment loans mitigate that risk by charging sky-high . The loans' short terms can be difficult to pay off in time and can make borrowers fall into the loop of borrowing.
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4 options for no-credit-check loan options

No-credit-check installment loans
No-credit-check loans are widely available online, and borrowers who choose this option must take the time to evaluate the various loans. NerdWallet has examined the following lenders without credit checks, which offer different loan sizes and rates.
Nerdy Tip
The interest rates for no-credit-check installment loans typically reach triple digits and the total amount paid may be more than double the amount originally borrowed. If you can't make payments then the lender might offer to refinance the loan for a larger amount or longer term that ultimately makes the loan more expensive. Consider this type of loan as a last resort when the loan has been exhausted .


OppLoans
OppLoans offer short-term loans that range from $500 to $4,000 that have the repayment period ranging from nine or 18 months. Rates can reach 160%, making this an costly loan that's best reserved for emergency situations.
OppFi is the lender that provides OppLoans, reviews accounts of the applicants to evaluate their cash flow per month. Instead of a credit pull the lender examines an customer's Clarity Services report, which gives information about consumers who have low credit scores.
OppFi sends payments to the three major credit bureaus, which means on-time payments help you improve credit score, while late payments can hurt your score on credit.
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To get an OppFi loan from OppFi You must:
A minimum monthly gross income of $1,500.
A bank account that has at minimum 40 days of historical records.
Payrolls are received via direct deposit.

Potential Finance
Possible Finance can be described as an application that offers loans from $50-$500 to consumers with bad or no credit. Repayment terms are up to eight weeks, and payments are paid in biweekly installments. Possible's rates can reach 240%, which is extremely excessive compared to the maximum of 36% suggested by the majority of consumers' advocates.
The lender reviews the applicants' bank transaction to figure out if they're eligible and also their loan amount, however the lender doesn't conduct a hard credit check.
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To get an loan at Possible Finance, will need:
The number is a Social Security Number.
An ID issued by the state, such as a driver's license.
A bank account that has a positive balance which has recently made deposits.
At minimum, three months of transaction information.

Cash advance applications that do not require a credit check
Cash advance apps offer up to a few hundred dollars to help consumers fill in the gaps in income between paydays. You can request an advance on the app and it offers a payment datetypically your next payday.
These apps don't do an actual Soft or Hard credit check; rather, they analyze your bank account's transactions to decide if they should give you an advance, and what amount. Earnin can be a good example that does not require a fee to make use of.
Earning
Earnin is a mobile application that allows borrowers to take up to $750 out of their paycheck before payday. The app doesn't charge mandatory fees, but it has additional tips and charges for funding on the same day.
Earnin requires proof of the time spent, either through an electronic timesheet or sharing your location with the application.
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To be able to get an increase from Earnin You will need to:
To be at least 18 and a U.S. citizen.
Valid Social Security number.
A regular pay schedule.
In order to receive at least half of the salary via direct payment.
A workstation that is fixed as well as an online timesheet.

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No-credit-check buy now, pay later apps
" " is an option for financing that divides costs of purchases made on the internet or in a store. The most popular BNPL loan is a pay-in-four method you pay 25% of the purchase at the point of purchase, and the remaining in three equal installments every two weeks.
BNPL businesses typically only do a soft credit pull. Afterpay is a BNPL application that is widely accessible and suitable for those who are first-time users.
Afterpay
Afterpay breaks down purchases from $200 to $2,000 into smaller payments. There is no interest charge However, late fees can be as high as the equivalent of $8.
Afterpay performs a gentle credit check upon applying. The app splits your shopping bill into four equal payments that are due today and three due on biweekly intervals.
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To make use of Afterpay at the time of the checkout, you must:
You must be at least 18 years old and a U.S. resident.
A verifiable email address.
To be licensed to make purchases using the credit card debit card, checking account or credit card account making the purchase.

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Summary of no-credit-check lenders
Lender



Type of loan



The amount of the loan



Est. APR



Fees



A high-interest, installment loan.


$500 - $4,000.


59.00% - 160.00% .


None.


A high-interest, installment loan.


$50 - $500.


54.51% - 240.52% .


May charge an additional 2 .


Cash advance app.


$100 - $750.


None.


Additional fast funding fee: $0.99 $3.99. $3.99.
Optional tip.



Pay later, buy now app.


$200 - $2,000.


None.


Late fee: $8.








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How to find loans that do not require a credit check loans

If an installment loan is the best option, here are a few ways to stay away from the risk of a predatory lender.
Look for the APR. An APR allows you to assess the loan's affordability and also compare it to similar loans. The law requires lenders to disclose the loan's APR.
Find a lender that assesses your ability to pay. Reviewing your bank account information, doing an informal credit check and contacting other credit bureaus and requiring proof that you earn income is all signs that a lender is looking for you to repay the loan. If a lender doesn't verify your ability to repay may be counting on you being required to borrow another loan to repay the first loan, which is how the cycle of debt begins.
Learn the repayment terms. If you decide to pay the loan within two weeks or couple of months, be aware of the date of your payment and when the lender will collect the money. If the lender takes money from your bank account, you should review your budget to make sure the money will be there and you don't have to overdraw.
Examine the amortization schedule. If the loan has multiple installments, ask to see the amortization schedule. It can be viewed as a spreadsheet that outlines how much of each payment goes toward principal and how much goes to interest. In the ideal scenario, at least a part of each payment will pay to pay down principal.
Check for the license of the lender. The Federal Trade Commission requires lenders to register in all states where they do business. Many list their licenses on their websites.
Beware of fraudsters. A trustworthy lender won't require for payment before you get a loan. If the lender requests a gift card or cash before they lend money, it's probably an enigma.

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No-credit-check loan alternative

Family loans
Ask someone you trust to help you pay a bill, cover rent , or spot you cash to buy groceries. It might be difficult to request, but it will preserve your credit score and prevent you from entering into an agreement with a high-interest or payday lender. You and your family member may draft a contract detailing the loan amount, repayment term and the method of repayment.
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Payment plans
If reducing a credit card bill or rent, utility bill or mortgage payment by one or two months would suffice, ask about a payment plan. Some utility and credit card companies offer hardship forms which you can utilize to request an extension however you'll need to reach out to your lender or landlord.
Credit union loans
A lot of lenders offer small personal loans that start at $500. To determine whether you are eligible they will consider other information that is not the credit rating, for instance, the history of your membership. Federal credit union cap the rates of private loans at 18 percent. A few credit unions provide payday alternative loans or , which are small-dollar loans with maximum 28% APRs.
Capital Good Fund
Accepts applicants with weak or zero credit histories for loans up to $1500. Capital Good Fund doesn't need credit, but they will look at any credit history you have. Capital Good Fund also provides loans to help with immigration costs and home weatherization in some states. With rates that range between 5 and 16 percent, Capital Good Fund loans are a good option for consumers who live in states where the lender is a service.
Online lenders
Some online lenders consider borrowers with poor credit -- even those who have FICO scores less than 600. In order to help you get a loan they will consider other information such as employment status or outstanding debts. Bad-credit loans are more expensive but are typically not higher than 36%..
>> COMPARE:
Find out if you're pre-qualified for a personal loan and it will not affect your credit score
Just answer a few questions to receive customized rate estimates from several lenders.


Loan amount
on NerdWallet








No-credit-check loan example

One-year $2,000 loan with APR of 36% would have monthly payments of $201. The same loan through a no-credit-check lender with an APR of 200% would run the monthly cost at $396- nearly double the cost.
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Here are a few examples of that similar loan repaid at different APRs.
Credit score



Example APR



Monthly installments



Total payment



Excellent (720 or more)


11%


$177


$2,121


Low (629 or less)


36%


$201


$2,411


No-credit-check


200%


$396


$4,747










About the author: Annie Millerbernd is a personal loans writer. Her work has appeared in The Associated Press and USA Today.







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