Let’s face it – no one shops around for the highest interest rate they can find when they need a personal loan. Instead, you should only consider higher interest loans as a last resort. But sometimes, a financial emergency or other circumstance requires that you obtain the easiest and fastest loan you can find.
For this reason, no credit check loans, also known as emergency loans, have their place in the lending community. I’ll share the best places to find a no credit check loan in this article, but I’ll also point you towards some viable alternatives. If you find yourself in a sudden pinch, for whatever reason, this one’s for you.
Table of Contents
- What Is A No Credit Check Loan?
- Best No Credit Check Loan Companies
- No Credit Check Loan Alternatives
- Should I Get A No Credit Check Loan?
- Final Thoughts on No Credit Check Loans
What Is A No Credit Check Loan?
Loan companies issue no credit check loans without performing a credit check on the borrower – hence the name no-credit check loan.
No credit check loans are usually issued to borrowers with poor credit or no credit at all. They are generally available in dollar amounts anywhere from $100 to several thousand dollars.
No credit check loans often have shorter terms, and the application process is pretty simple, allowing lenders to disburse funds quickly.
While the idea of a no credit check loan may sound appealing, there are some caution signs to consider before signing on for this type of loan.
A Note of Caution Regarding No Credit Check Loans
The most glaring caution with no credit check loans lies in the interest rate that’s charged. Some companies that issue no credit check loans charge 200%, 300%, or more as an interest rate. No, that’s not a typo.
In the eyes of no credit check loan lenders, you are lucky to get a loan from them, and you’ll pay dearly because of that. If you get a no credit check loan, you’ll want to pay off your loan quickly because of the high interest.
Here’s an example of the payment difference between a typical personal loan, and a no credit check loan:
Let’s say you need to borrow $2,500 over a one-year term. On the high end of a traditional personal loan, you’ll pay 36% interest. In that scenario, you’d have 12 monthly payments of $251.16.
However, if you took out a no credit check loan with an interest rate of 200.00% (not uncommon), you’d have a monthly payment of $494.42.
That’s a staggering difference in payment amount and nearly $3,000 more dollars out of your pocket than the $2500 you originally borrowed.
Also, no credit check loans often charge high fees if you’re late on a payment, adding to the loan balance.
The higher interest rate and potential for high late fees can keep you trapped in a cycle of debt that might be difficult to get out of.
For that reason, we’re going to share information on some of the more trustworthy no credit check loan companies, but we’ll also share some no credit check loan alternatives. That way, you’ll have more options to choose from if you need to borrow money at some point.
Best No Credit Check Loan Companies
There are many unscrupulous no credit check loan companies out there.
While they still charge high rates, the companies listed below may be more trustworthy than other companies offering no credit check loans.
NetCredit offers both personal loans and lines of credit. For this article, we’ll talk only about their loans.
If NetCredit approves your loan, you can generally get the funds within one business day.
Here are NetCredit’s basic loan terms.
- Loan amount: $1,000 to $10,000
- Interest rate: 34.99% to 99.99%
- Loan term: 12 to 60 months
NetCredit partners with Republic Bank & Trust to issue loan funds. Note that depending on which state you live in, a different bank may back a NetCredit loan.
LendingPoint offers unsecured personal loans to borrowers in 48 U.S. states and the District of Columbia.
Nevada and West Virginia residents cannot use LendingPoint. Here are the parameter guidelines for LendingPoint loans.
- Loan amount: $2,000 to $36,500
- Interest rate: 9.99% to 35.99%
- Loan term: 24 to 60 months
Note that origination fees may be applicable when you borrow money from LendingPoint. LendingPoint offers unsecured funds that you can use for any purpose.
Upstart offers personal loans to eligible borrowers via their partner banks. With Upstart, borrowers with low credit scores and no credit score can apply.
Here are Upstart’s loan parameters.
- Loan amount: $1,000 to $50,000
- Interest rate: 6.12% to 35.99%
- Loan term: Up to 60 months
Upstart does have several requirements that borrowers must meet. You must be a U.S. citizen or permanent resident at least 18 years of age.
You must have a verifiable name, date of birth, and Social Security number. And you must have a full-time job or job offer that you will be starting within six months.
See the Upstart website for more details.
4. OneMain Financial
OneMain Financial offers personal loans to borrowers throughout the U.S. The company takes online applications but has branch offices as well.
Here are the basic parameters for OneMain Financial’s loans.
- Loan amount: $1,500 to $20,000
- Interest rate: 18.00% to 35.99%
- Loan term: Up to 60 months
Some states may have varying loan parameters due to state and local lending laws.
Late fees and origination fees may apply. You can check for offers from OneMain Financial without affecting your credit score.
5. Bad Credit Loans
They didn’t mince words when they chose the name for this company, did they? However, Bad Credit Loans isn’t a lender.
Instead, Bad Credit Loans will search online lenders for you when you put in an application so that you know what all of your loan options are.
The company doesn’t charge you a fee for this service.
Bad Credit Loans does offer suggested parameters for the lenders they partner with:
- Loan amount: $500 to $10,000
- Interest rate: 5.99% to 35.99%
- Loan term: 90 days to six years
However, the site clarifies that not all of the lenders they work with will have loans that fall into these parameters.
In other words, you may be charged a higher interest rate or pay additional fees if you partner with a lender they suggest.
CashUSA works a lot like Bad Credit Loans. You’ll fill out an application and then get a list of lenders that are willing to lend you money.
Each offer will contain the lender’s interest rate, loan term, and other details. Here are CashUSA’s suggested loan parameters.
- Loan amount: $100 to $10,000
- Interest rate: 5.99% to 35.99%
- Loan term: 90 days to six years
As with Bad Credit Loans, CashUSA doesn’t charge a fee for using their service. Also, you may pay a higher interest rate than what the company advertises on its website.
You need to be 18 years of age or older to apply here, you have to be a U.S. citizen or permanent resident, and you need to make at least $1,000 per month.
No Credit Check Loan Alternatives
It’s always best to get the lowest interest rate possible when borrowing money. Here are some no credit check loan alternatives that may offer you a better deal.
No credit check loans are usually unsecured loans, and lenders often charge higher interest rates for unsecured loans.
If you have something you can offer as security for a loan, like your house, cash, a car, boat, or recreational vehicle, you may be able to get a better interest rate by using that item as collateral for the loan.
Check with local and online lenders to find the best deal.
LendingClub is a crowdfunded lending site where investors lend money to loan applicants.
When you submit your loan application on LendingClub, LendingClub offers the loan to investors who can choose to back your loan.
With LendingClub, you’ll often get a lower interest rate and lower fees with your loan. LendingClub offers personal loans of up to $40,000.
Your Local Bank
Checking with your local bank to get a loan can also be a good idea, especially if you check with smaller banks.
Even in today’s digital world, small local banks will often make lending decisions not just on your credit history but on the banker’s gut instinct as well.
This is especially true if you have a parent or other close relative who is a long-time bank member.
Should I Get A No Credit Check Loan?
As mentioned earlier, no credit check loan companies charge astronomically high-interest rates and other fees. You should only get a no credit check loan as a last resort and try working on other options first.
Check out the no credit loan alternatives I outlined above. Sell your stuff online to get quick cash. Pick up some overtime hours at work or get a temporary second job. Or check out other ways to make money fast.
If you’ve truly exhausted all of your other options and need to take out a no credit check loan, read the fine print, so you understand what you’re signing up for.
And pay the money back as quickly as possible, avoiding late payments.
Final Thoughts on No Credit Check Loans
No credit check loans are an option in an emergency, and there are times when they might be the only choice. My goal with this article has been to present you with the best emergency loan options. If you do take out a high-interest loan, if you can, try to pay it off as quickly as possible to lower your interest costs. Also, to help you avoid having to take one out, consider building up an emergency fund to cover those unexpected expenses.