Online No Credit Check Loans For Good & Bad Credit Near Me

What is a no credit check loan?

A no credit check loan is a loan that doesn’t require a credit check. They can be installment loans, cash advances, secured loans (example: car title loan), and more. Technically, it could even be a loan from a friend or family member. While some no credit check loans may be cost-effective and beneficial if you make on-time payments, some are expensive and not flexible. 

If you put yourself in the shoes of the lender extending the loan, you can see where the risk comes in. When lending money, there’s always risk for the lender, but with less examination of the borrower, there can be more risk. In order for the loan to make sense, there’s usually something in it for the lender. For example a popular no credit check option you might recognize is Afterpay. Afterpay allows consumers to make payments on purchases rather than pay in full upfront. However, merchants are paid in full, but there are merchant fees for offering the payment option for customers. 

No credit check loan options:

• OppLoans (installment loans): Available in most states, OppLoans are high cost loans with short repayment periods, regardless of the borrower’s ability to repay. Rather than using a hard credit pull to make loan decisions, OppLoans uses bank account transactions to analyze cash flow in combination with a soft credit pull. These loans are still reported to the three major credit bureaus; Equifax, Experian, and TransUnion.

• Afterpay (buy now, pay later): Afterpay works with retailers to offer financing solutions for customers. Consumers can buy now, pay later with Afterpay. With Afterpay, purchases are split into four equal payments, with the first one due at checkout. The following installments are due bi-weekly. Purchases should not exceed $600. Afterpay does not charge interest and the late fee is tapped at $8, making this a frequently used option. When you apply to use Afterpay, a soft credit check (no credit impact) is done. 

• Earnin (cash advance): Some of us experience cash shortages between pay periods, which is where cash advances come in. Earnin is a cash advance app. Users that have the app can borrow up to $750, in $100 increments,  from their paycheck prior to payday. What makes Earnin more attractive than competitors is the high $750 maximum limit and no mandatory fees. However, there are optional tips and fees charged for same-day funding. To qualify, Earnin users must be paid regularly and have a fixed working location or employer-provided address. Earnin requests proof of time worked to determine eligibility. 

• Klarna (buy now, pay later): Similar to Afterpay, Klarna is a buy now, pay later option. Both charge 0% interest and have similar payment structures.  
• Possible (installment loans): Similar to Earning, Possible is an app. Possible offers loans up to $500 with repayment periods up to 8 weeks. Consumers with bad or no credit may want to consider this option. Be aware though, rates can reach an astonishing 248% in some states. Loans are reported to Experian and TransUnion, but a hard credit check is not required. 

Soft vs. hard credit inquiry

You might be noticing that a no credit check loan may still perform a soft credit pull. So, what exactly is a soft and hard credit pull? Let’s take a look. 

Soft credit pull:

The first thing you’ll want to know about a soft credit is that it does not impact your credit score. While they may be recorded, there should not be an impact. Usually, they are done as part of a background check, but not the kind you might be thinking of. While an employer might do a soft credit pull before hiring you, lenders may also do them to see if you qualify for certain offers. And, you may not always know they are doing them. When you check your own credit score through sources such as credit monitoring apps, chances are, you too are doing a soft credit pull on yourself. When applying for a loan, a soft credit pull can be done to generate a pre-qualified offer, but in most cases, a hard credit pull will follow if you accept the offer. 

Hard credit pull:

Hard credit pulls can impact your credit score and are usually done when financial institutions make lending decisions. Hard credit pulls can cause your credit score to drop by a few points. A single credit pull should not impact lending decisions, but multiple hard credit pulls may leave a bigger impact. Hard credit pulls can stay on your credit report for about 2 years. Multiple hard credit pulls in a short window of time may be a red flag in some cases. Before authorizing a hard credit pull, make sure your intent is serious to move forward to avoid unnecessary hard credit pulls. 

When shopping for loan offers, it’s important to understand the type of credit pull that will be done, and now you can see why. At Acorn Finance, credit scores are not affected by checking offers through our platform, but if you accept an offer, the lender will likely need to do a hard credit pull before funding or approving the loan. 

Interest rates for no credit check loan versus personal loan:

Interest rates can play a big role in what a loan costs, as well as what payments are. While a no credit check loan may sound ideal, you might change your mind when you compare interest rates for some. As we’ve reviewed, there are some no credit check options that offer a 0% interest rate, such as some buy now, pay later options. However, most no credit check loan options come with high interest rates and short repayment periods. There may also be additional fees associated. Let’s compare interest rates for a no credit check loan versus a personal loan, and then we can review when a personal loan is a better option. 

• Example of the interest rate on a no credit check loan: Possible offers no credit check installment loans (same loan structure as personal loans) with rates as high as 248% in some states. In addition, the maximum loan amount is $500. You do the math. You will need to do some thinking, or none at all, to determine if that’s worth it. While this is just one example, no credit check loans are known for sky high interest rates. 

• • • Example: $2,000 loan with 200% APR equates to a monthly payment of about $396 for one year.

• Example of interest rate on a regular personal loan with credit check: APRs on personal loans can vary depending on the lender and borrower’s qualification, but usually fall between  6% to 36%. Some states cap interest rates that lenders can charge. Even on the high side of this range, the rates are still significantly lower than the previous example for a no credit check loan. 

• • Example: $2,000 loan with 36% APR equates to a monthly payment of about $201 for one year. Yes, that’s about half the cost of our previous example for a no credit check loan. 

Why you should get a personal loan with credit check

Personal loans can offer increased flexibility from the loan amount to the repayment period. Most personal loan lenders have minimum and maximum loan amounts they can offer, and then the applicant needs to qualify for their particular offer. In most cases, minimums are $1,000 or more. Therefore, if you need to borrow a smaller amount, an alternative option might make sense, but the cost should be considered. Personal loans can offer a lump sum of cash that is to be repaid in fixed monthly installments over a predetermined repayment period. If you need more time to repay, or need to borrow larger amounts, a personal loan may be a better option. Additionally, if a personal loan can offer a lower rate, you might want to opt for the cheaper option. Checking personal loan offers can be done in minutes at Acorn Finance with no credit score impact. Once you’ve checked rates, you can decide if a personal loan is in fact a better option. 

What to look for in a no credit check loan

When considering a no credit check loan, you should evaluate the details, just as you would for  a loan that requires a credit check. 

• Interest rate
• Fees
• Loan amount
• Monthly payment
• Repayment period 
• Qualification criteria
• Penalty or consequence if you default

Why you shouldn’t get a no credit check loan

Some buy now, pay later options may help you afford things you need or want, but in most cases, no credit check loans or cash advances should be avoided. Here’s why. 

1. High cost: No credit check loans can come with extremely high interest rates, and other fees, too. While they may seem like a quick solution, note what they will cost you, as this can instantly make you change your mind. 
2. Collections: If you fail to repay a no credit check loan or fall behind on payments, you might be wondering what the consequence is. In some cases, such as with buy now, pay later loans, it can be sent to collections. 
3. Lack of flexibility: No credit check loans may require frequent repayment, short repayment periods, low loan amounts, and other restrictive details. Before accepting, make sure you can keep up with the arrangement. 
4. Qualifications: While no credit check loans may not have a credit score requirement, there may be other qualifications, such as the ability to repay. 

Alternatives to no credit check loans 

Starting to wonder what else is out there? Here are some alternatives to a no credit check loan.

• Secured loans: Secured loans are backed by collateral, therefore, the lender has something to reduce the risk in the event the borrower defaults on the loan. Be mindful, though, that if you default on the loan, you can lose the collateral you put up. 
• Secured credit card: Borrowers with not-so-great credit or little to no credit can use a sacred credit card to establish credit history. With a secured credit card, you put down a deposit which serves as collateral. If you don’t have the down payment available, this might be ruled out as an option. If you can find a way to make it work though, this is a great way to build credit. 
• Payday loan alternatives: Federal credit unions may offer payday loan alternatives with  a maximum APR of 28%. Compared to no credit check loans or regular payday loans, the repayment periods can be longer. While they may be harder to find, it might be worth your time to look for a credit union that offers them. 

Can you get a no credit check loan with bad credit?

No credit check loans are primarily intended for borrowers with no or bad credit. While some are reported to major credit bureaus and can be used to boost your score, they will likely come at a price. When you have bad credit, though, you may face limited options. Don’t forget that boosting your credit score and using a loan that requires a credit check may also be an option. At that, it can be an option that benefits you in the short and long term. 

Should I get a payday loan?

Payday loans are generally capped at low amounts (such as $500) and can have high interest rates (as high as 400%). That said, they might not be the best way to come up with cash before your next pay period. You may want to consider using a credit card in between pay periods, and pay the balance when you get your next check, or keeping a secured credit card handy. Compare your options to determine what’s best for you and your situation. 

See also: What is a payday loan?

What about guaranteed approval no credit check loans? Does this exist?

As we mentioned early, there are usually some requirements for no credit check loans. While some may be guaranteed, they are usually guaranteed in the sense that the lender will do their best to get you a loan, regardless of your credit score. It’s important to read fine print and ask questions to understand what things mean, as they may not always mean what you assume they mean. 

What about hard money loans, should I get that instead of a no credit check loan?

Hard money loans are secured by collateral. They are often used to bridge a cash flow gap. For example, if you have money coming in from a sale, but need to make a purchase before receiving that money. There are some risks associated with hard money loans. Compare your options to determine the most cost-effective and lowest risk loan option depending on your circumstances. 

See also:

• Urgent Emergency Loans For Bad Credit
• Fast Cash Loans
• Quick Loans
• Same Day Loans