best personal loans with no credit check

Personal Loans With No Credit Check: 3 Lenders You Can Trust

Looking for a personal loan but have bad credit? Good news: there are direct lenders who offer personal loans with no credit check. Many of these lenders are untrustworthy or predatory, but some make genuinely good offers. We’ll help you discern the opportunists from the opportunities.

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

What types of loans don’t require good credit?

Are there personal loan lenders that don’t need to check your credit? The short answer is yes. While most lenders use your credit score to judge how reliably you will make payments, there are some that secure their loans with collateral, not credit. These are called secured loans, and applicants with poor credit can acquire them.

What kind of collateral could you provide? 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.

But be sure to make your payments. If you default on the loan, the lender gets to keep that collateral — whether it’s your paycheck or the car you need to commute.

Some secured loans still require credit checks, but they’ll still be more lenient than unsecured lenders.

Learn 10 ways to boost your credit

How do you choose a secured personal loan lender?

Some secured loans have better rates and terms than others. It’s crucial to understand the details so you don’t end up digging yourself into a hole from which you can’t get out. Because they’re attractive to borrowers with low credit, some of these lenders offer predatory terms. Caution and prudence is essential.

Payday loans, for example, are unsecured loans available to applicants with low credit — but they make up for it with punishing interest rates. 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 whether you can comfortably repay it in the repayment period. Be sure to consider how much you spend on a day to day basis, and make sure that adding these payments won’t push you over budget. Learn the stakes: ask what will happen if you can’t repay it for some reason. Compare your options and choose a loan you can afford — that won’t egregiously punish you if you fail to do so.

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:

LoanMart loans1. LoanMart

LoanMart is a consumer finance company based in Encino, California. It provides non-traditional loans that use the equity on your car as security. This allows them to offer financing to borrowers with all types of credit score.

Loan amounts depend on the value of your vehicle. Rates are competitive when compared to similar lenders and they offer terms of up to 48 months. The company has an in-house titles team so you can save yourself a trip to the DMV.

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • Convenient online application and approval.
  • Quick lending decision.
  • Loan terms up to 48 months.
Cons
  • Fees and interest rates can be high.
  • Credit score 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 your request is approved, the amount and term length will depend on state laws and how well you fit their criteria.

To qualify, you must:

  • Be 18 years of age.
  • Be a U.S. citizen or permanent resident.
  • Have an email address and an active checking account.
  • Provide a drivers license.
  • Have 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 in as little as 24 hours.

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 provides auto title loans and aims to be a socially responsible lender. It offers online services, but also has 32,000 U.S. retail locations. The loans have a maximum APR of 30% and cost up to 50% less than the national average.

The online process is convenient, approval decisions are made quickly, and funding can be provided 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:

  • Own a car with no liens.
  • Provide proof of income.
  • Provide proof of residency.
  • Have equity in your car.
  • Have comprehensive and collision insurance.
  • Are 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 U.S. 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 your options

When there is no credit check on a personal loan, there will be other downsides. Lenders can’t just give money out to people without security — they are in the business of turning a profit.

So when you hear “no credit check loans — online instant approval!” or something similar, look for the catch. The less visible the catch, the more suspicious you should be.

Look for lenders who are up-front and honest about their downsides — likely either high fees, rates, 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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