best personal loans with no credit check

Best Personal Loans With No Credit Check: Top 3 Direct Lenders in 2018

Looking for a personal loan but have bad credit? Well, the good news is that there are direct lenders who offer them without the standard credit check. The bad news is, there is a catch, of course. However, some lenders are better than others.

Here, we will reveal what you should know about personal loans with no credit check and the three best lenders who offer them.

What is a personal loan no credit check direct lender?

Are there personal loan lenders that do not require a credit check? While many personal loan lenders offer unsecured loans backed by a person’s credit and financial profile, others offer loans backed by alternate types of collateral.

What kind of collateral?

It could be an item of value such as a car title, a piece of jewelry, or an upcoming paycheck. You will have to prove ownership of an item or that a paycheck is coming and, upon approval, can offer it as collateral to borrow money.

If you default on the loan, the lender has some security as they can take ownership of your item and sell it or take your next paycheck to cover the loss.

Often, these lenders will still evaluate your creditworthiness even with collateral, but you can find a few that will not put a hard inquiry on your credit report. Further, if your credit is analyzed, they will be more lenient than unsecured personal loan lenders.

Learn 10 ways to boost your credit

How popular are these types of loans?

12 million Americans take out payday loans each year (approx. 5% of the population). On average, they are in debt for five months and spend $520 to borrow $375 repeatedly. While meant for emergencies, seven out of 10 payday borrowers use the funds for everyday expenses.

Review and compare payday loan lenders here

When it comes to auto title loans, about 2.5 million Americans take one out each year (approx. 1% of the population). The average loan amount is $1,000, the average cost is $250, and the average repayment period is 30 days. Just over half of the borrowers use the loans for regular expenses versus an emergency or special purchase. (source)

Review and compare auto title loan lenders here

How do you choose a secured personal loan lender?

Some secured loans will have better rates and terms than others. It’s crucial to understand the details so you can make sure you don’t end up digging yourself into a hole from which you can’t get out. There has been a tendency for some of these types of lenders to offer predatory terms, so it’s important to be cautious.

Rob Drury, Executive Director of the Association of Christian Financial Advisors, says, “Payday loans are typically predatory, being offered to those who represent poor credit risks.

As such, terms are often terrible. With that said, there can be a legitimate needs for these products, as it may be necessary to bridge a short time gap in keeping up with financial obligations.”

How can you find a decent lender?

Consider the total cost and if you will be able to repay it in the alotted repayment period along with your regular expenses. Further, find out what will happen if you can’t repay it for some reason. Then, compare the options to decide which one is best.

3 best personal loans no credit check direct lenders for 2018

Where should you start your search? Here are three of the best personal loan lenders that don’t require a credit check to get approved:

1. LendUp’s short-term loans

LendUp is an online-only lender that offers short-term, single-payment loans as well as longer installment loans. The short-term loans are the ones that do not involve a hard credit check, although a soft pull will be performed.

The amount you can borrow, fee rate, and length of the loan will vary depending on your state (be sure to check if they lend within your state). Loan amounts range from $100 to $500, and loan terms range from seven to 31 days.

While the initial fee to borrow may be high, you can earn points that will enable you to access lower rates in the future. This program is called the LendUp ladder.

How do you earn points? By beginning your first loan, repaying your loan on time, completing educational courses, referring a friend, and sharing your story.

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • Convenient online application and approval
  • Quick lending decision
  • Short-term loans up to $500 (depending on your state)
  • Loan terms up to 31 days (varies based on state)
  • No hard inquiry on your credit report
  • Earn points that will enable you to borrow more for less in the future
Cons
  • Fees are high for first-time and infrequent borrowers
  • Credit is still considered
  • Not everyone will get approved

2. CashNet USA payday and installment loans

CashNet USA offers payday and installment loans but does not process hard credit inquiries that will negatively impact your FICO credit score. However, they do look at alternative credit scores and sources. If you are approved, the amount and term length will depend on your state’s laws and how well you match the qualification criteria.

To qualify, you must:

  • Be 18 years of age
  • Be a US citizen or permanent resident

and have:

  • an email address and an active checking account
  • a drivers license
  • been employed for one month

The online application is fast, you’ll get an instant lending decision, and the money can be in your account as soon as the next day.

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • Easy, online application
  • Upon approval, funds can be in your account within one day
  • Payday loans up to $500 (depends on state)
  • Payday loan repayment periods up to 31 days (varies by state)
  • More lenient than many lenders
Cons
  • High fees
  • Not everyone will be approved
  • No loyalty program

3. Finova Financial auto title loans

Finova Financial is a provider of auto title loans and aims to be a socially responsible lender. It offers online services while also having 32,000 US retail locations. The loans have a maximum APR of 30% and cost up to 50% less than the national average.

When it comes to applying, the online process is convenient, approval decisions are made quickly, and cash funding can be completed as soon as the same day. Once you have the loan, you can manage it from a personalized dashboard online. Loan terms are for one year, and there is no prepayment penalty if you pay your balance off early.

Even if you have no credit or bad credit, you can get approved as long as you meet the following requirements:

  • Own a car with no liens
  • Proof of income
  • Proof of residency
  • Equity in car
  • Comprehensive and collision insurance
  • Not currently in bankruptcy

If you fit the criteria, you can easily apply online to see how much you can get.

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • Consumer car loans with costs 50% lower than the national average
  • The 12-month repayment period
  • Costs are up to 50% less than the US national average
  • Good credit is not required
  • Funding as soon as the same day
  • Easy online application
  • No prepayment penalties
Cons
  • You must own your car in full and meet the other requirements
  • You can lose your car if you don’t repay the loan according to the terms
  • Only operates in California, New Mexico, Florida, South Carolina, Arizona, and Tennessee

Compare direct lenders for bad credit loans

When there is no credit check on a personal loan, it is going to come at a price. Lenders can’t just give money out to people without security, as they are in the business of turning a profit.

So when you hear “no credit check loans online instant approval” or something similar, you should ask yourself, “What is the catch?” The less apparent the catch, the more you should worry.

Look for lenders who are up-front and honest. For example, “We lend without a credit check in exchange for x,y, and z.” It will either be a high cost or some type of collateral. Compare at least three lenders against each other to find the best deal.

Compare payday lenders side-by-side to find your best option. 

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