SOME CARD INFO MAY BE OUTDATED
This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.
Most lenders use your credit score and history as a primary factor to determine whether you qualify for a personal loan. So if your credit is bad or your history shows red flags, you may look for a lender that works differently and offers a “no-credit-check-loan.”
We get it. Needing money and potentially not qualifying for more traditional borrowing options can be a tricky and often scary situation.
But no-credit-check personal loans come with major drawbacks that could make your finances worse. Steep interest rates, fees and short repayment terms can often leave you in a cycle where you keep taking on more debt.
So we’ll explain how no-credit-check loans work, and you can decide if that’s the best route for you. We’ll also lay out other options you may qualify for that are safer.
How do no-credit-check personal loans work?
Approval. Lenders may approve you for a no-credit-check personal loan based on a review of your income and bank statements. Or they may approve you if you pledge a valuable asset, like a vehicle, as collateral. That means if you don’t repay the loan, the lender can take your property.
Some may perform a soft credit pull, but it won’t cause your credit score to dip like a hard credit inquiry can.
Amounts and rates. No-credit-check loans are often a few thousand dollars or less and can be used for a variety of personal reasons, including to cover an emergency or bridge an income gap. They typically have short repayment terms of a few weeks or months.
Not knowing your credit history makes the loan risky for the lender. Many lenders balance that risk by charging triple-digit annual percentage rates. Most personal finance experts say the APR on an affordable personal loan should not exceed 36%.
🚨These loans’ short terms, paired with high interest, can make them difficult to repay on time. This combination can lead to repeat borrowing — potentially trapping borrowers in a cycle of debt.
Types of no-credit-check loans and their risks
You can get a no-credit-check loan from different kinds of lenders. Each comes with its own risks.
High-interest installment loans
Lenders offering no-credit-check, high-interest loans determine approval by reviewing applicants’ income and bank statements. Some, including OppLoans, review information from alternative credit bureaus like Clarity Services from Experian. They may also do a soft credit pull that doesn't affect credit scores.
These loans are available online or from storefronts and often have triple-digit annual percentage rates. Loan amounts are usually a few hundred to a few thousand dollars, and repayment terms are typically less than two years.
Here are a couple examples of no-credit-check, high-interest installment loans:
Risks of high-interest installment loans:
- Short terms can make it difficult to repay the loan on time. The lender may offer to extend your loan term to lower your monthly payment, but this keeps you in debt for longer and drives up the total cost of borrowing.
- Your credit score may be damaged. The lender may report missed payments to the three major credit bureaus and send you to collections if you don't repay the loan.
An example of these risks, with real numbers. Say you’re taking out a $2,000 loan with a one-year repayment term.
- A traditional lender that checks your credit may offer a 36% APR, even if your score is low. Those monthly payments would be $201 and would cost $2,411 overall.
- A no-credit-check lender may charge an APR of 200%. Over a year, your monthly payments would be $396 and would cost $4,746 altogether.
Cash advance apps
Cash advance apps are a way to borrow a small amount of money quickly. These apps generally don’t do hard or soft credit pulls. Instead, they review your income and bank account transaction history to determine whether you qualify and for how much.
If approved, these apps deposit funds, or an “advance,” to your bank account. Then they’ll tap that same bank account to automatically withdraw what you owe on your next payday.
Advance amounts are usually between $25 and $750. New users may not qualify for the maximum advance amount but can increase their advance amount over time.
Here are examples of no-credit-check cash advance apps:
| Cash advance app | Loan amounts | Fees |
|---|---|---|
| $25 to $500. | Overdraft service fee: $5 or 5% of advance amount, whichever is greater; fee is capped at $15. Membership fee: Up to $5 per month. Fast-funding fee: 1.5% of advance amount (applies to external debit card transfers only). | |
| $10 to $400. | Subscription fee: $8 per month. Fast-funding fee: $1 to $8 up to $299.99, then 3% of advance amount. |
Risks of cash advance apps:
- High fees. These fees can be high for what you get. Most apps charge a fee for expedited funding — often under $10. Many also ask for an optional tip or charge a subscription fee.
- Upcoming gap in your paycheck. If you can’t tolerate spending part of your upcoming paycheck to repay the app, you could end up returning to the app for more cash to make ends meet — a cycle of debt that can be hard to break.
Buy now, pay later plans
Buy now, pay later apps usually qualify applicants with a soft credit check rather than a hard inquiry. A BNPL company may increase your loan amounts over time as you borrow and repay the app.
When you use the common pay-in-four plan most BNPL companies offer, you pay for 25% of the purchase at checkout and then rest in 25% biweekly increments over six weeks. There’s usually no interest with these payment plans, but some companies charge a late fee, and returns can be tricky.
Here are a couple examples of no-credit-check BNPL loans:
| BNPL app | Payment plans | Loan amounts | APR |
|---|---|---|---|
| Pay-in-four plan: Four biweekly payments. Monthly installments: Monthly payments for up to five years. | Pay-in-four: Any amount starting at $35. Monthly installment: Up to $20,000. | Pay-in-four: No interest. Monthly installment: Up to 36% APR. | |
| Pay-in-four plan: Four biweekly payments. Monthly installments: Monthly payments for up to 24 months. | Pay-in-four: Any amount up to $5,000. Monthly installment: $100 to $20,000. | Pay-in-four plan: No interest. Monthly installment: Up to 35.99% APR. |
Risks of buy now, pay later:
- Difficulty budgeting. If you use multiple BNPL apps to make multiple purchases, you could find yourself struggling to keep track of payments and racking up late fees. You may even be reported to collections.
- Growing dependent on payment plans to make ends meet. Relying on these payment plans for basic needs, like groceries, can lead to a cycle of debt if you’re unable to pay off the purchase and cover the rest of your monthly expenses.
Pawnshop loans
Pawnshops will accept a variety of items — jewelry, electronics, collectibles, firearms, tools, musical instruments and more — as collateral for a pawn loan. Instead of reviewing your credit, income or bank statements, the pawnshop assesses the value of your collateral to determine approval and loan amount. The pawnshop may ask for proof of ownership to avoid making loans on stolen goods.
Payment and fees for a pawnshop loan are typically due after 30 to 60 days. You might be able to renew the loan, but it increases the cost and can lead to a cycle of debt. While defaulting on a pawn loan won’t affect your credit, you could end up forfeiting your collateral.
Risks of pawnshop loans:
- You could lose your collateral. Only consider a pawnshop loan if you’re willing to potentially part with the item you’re using as collateral.
- Renewing your loan can lend to a cycle of debt. Extending your pawn loan also increases the cost of borrowing.
Payday loans
Payday lenders may not do a soft credit inquiry or review your bank account information to determine whether you qualify. Instead they require only proof of identification, income and a bank account.
You can get a payday loan from an online or storefront lender. Loan amounts are typically $500 or less, and the average annual percentage rate is around 400%.
On your next payday, typically in two weeks, the lender withdraws the amount due from your bank account or with a post-dated personal check you’ve given them.
If you can’t repay, you pay a fee to extend the due date.
Because of their high rates and short repayment terms, payday loans are known to cause consumers to slip into difficult-to-break debt cycles. NerdWallet doesn’t recommend payday loans if you can avoid them.
Risks of payday loans:
- Cycle of debt risk. Plenty of research shows that consumers who get payday loans often must borrow again after repayment or pay a fee to extend repayment.
- Collections risk. These lenders don’t usually report to the credit bureaus, but borrowers who can’t repay are often subject to high fees and may be sent to collections.
Title loans
If you have a paid-off vehicle, you could leverage your car’s title as collateral to get a title loan. The lender bases your loan amount on a percentage of the vehicle’s resale value, and you typically have a month to repay the loan.
Risks of title loans:
- Could lead to repeated borrowing. The short loan terms can make it difficult to repay your balance on time, which can lead you to rolling over the loan to a new loan and increasing the cost of borrowing money.
- Potential to lose your car. Using your car title as collateral means the lender can take your vehicle if you default.
What to know when shopping for a no-credit-check loan
If a loan with no credit check is your best option, here are tips to avoid a predatory lender.
Look for the APR. An APR helps you evaluate the loan’s affordability and compare it with other loans. Most lenders are required by law to disclose the loan’s APR before you sign a loan agreement, but cash advance apps and BNPL companies may not have to.
Find a lender that assesses your ability to repay. Reviewing your bank account information, doing a soft credit pull, checking alternative credit bureaus and requiring proof of income are all signs that a lender wants you to repay the loan.
A lender that doesn’t check your ability to repay may be counting on you to refinance the loan for one with a longer term or get a second loan to pay off the first, which is how a debt cycle begins.
Understand the repayment terms. Get clear on your payment date and how the lender will collect the money. If the lender debits your bank account, make sure the money will be there so you don’t overdraw.
Review the amortization schedule. If the loan requires multiple payments, ask to see the amortization schedule, which is a table that shows how much of each payment goes toward principal and how much to interest. At least part of each payment should pay down the loan’s principal.
Do your research. Study multiple lenders to evaluate their legitimacy and learn the pros and cons of borrowing with them.
Look for the lender’s license. Lenders usually must register in states where they operate. Many list their licenses on their websites.
Beware of scammers. A reputable lender won’t ask you to pay them before you get a loan. If the lender asks for a gift card or cash before they lend money, it’s likely a scam.
» MORE: How to spot a personal loan scam
Did you know...
Per the Military Lending Act, lenders can’t provide loans with APRs above 36% to active duty military members or their dependents. That’s why, if you’re a military member or dependent, you may be rejected for a high-interest, no-credit-check loan outright. How to get a loan with no credit check
If you identify a legit loan that fits your needs, here’s how to proceed.
1. Check your credit and bank account histories. Even if the lender only does a soft credit pull, it’s helpful to check your credit reports before you apply to understand what may be working against you.
These lenders often look at cash flow information in your bank account, so also see how much money you typically have in your account after your bills are paid.
2. Apply. Once you request a loan, the lender may do a soft credit check, but the lender must notify you before doing a hard inquiry, per the Fair Credit Reporting Act. The lender should give you an approval decision quickly after you apply.
3. Make a plan to repay. Before you accept a loan, make sure to understand how much you’ll be required to pay and when, so you can make a firm plan to pay on time and avoid getting stuck in a cycle of debt.
Alternatives to no-credit-check personal loans
Before you get a no-credit-check loan, consider all your alternatives. In general, the easier a loan is to get, the more expensive it could end up being.
» Read our full guide: Alternatives to high-cost loans
Traditional personal loans for bad credit
Even if you have bad credit or a limited credit history, you may still qualify for a traditional personal loan. In fact, some lenders specifically cater toward borrowers like you. Here are a few examples of lenders we recommend:
- Upstart has no minimum credit score. It offers loans ranging from $1,000 to $75,000 and can typically deposit funds within a day. It also allows you to secure a loan with a vehicle, which may help your chances of qualifying or getting a lower rate.
- Universal Credit’s minimum credit score is 560. It also offers fast funding and loans ranging from $1,000 to $50,000. It’s a solid option if you have multiple debts to consolidate.
See the rest of our picks for best personal loans for bad credit. These lenders do perform a hard credit check when you officially apply. But they also keep their maximum APRs below 36%, which is much lower than what you’d expect from a lender that doesn’t check your credit.
Their terms are longer, too, typically starting at two or three years. Spreading out payments over a few years — rather than weeks — means they’re smaller and easier to pay.
Note that you can increase your odds of getting approved for a personal loan by opting for a secured personal loan or a co-signed or joint loan along with a co-applicant with better credit or higher income.
🤓 Nerdy Tip
Even if you’re not sure that you can qualify for one of these more traditional loans, it’s worth pre-qualifying with lenders who let you do so. By pre-qualifying, you can check whether you qualify and, if so, see your estimated rates and terms. It takes just a few minutes and requires a soft credit check, which doesn’t affect your score. As for where to get a loan, start with online lenders and credit unions, which are more likely than banks to accept loan applicants without great credit.
Some federal credit unions offer payday alternative loans, or PALs, which are small-dollar loans with maximum APRs of 28%. APRs for regular federal credit union personal loans are capped at 18%.
» Learn more: What are payday alternative loans?
Family loans
It may be difficult to ask a loved one to help you pay a bill, cover rent or buy groceries, but it can keep you from entering into a contract with a high-interest or payday lender. You and your family member can draw up a formal agreement detailing the loan amount, repayment term and how you’ll repay them.
» Learn more: How to borrow from and lend to family
Payment plans
If you’re struggling to cover an upcoming credit card bill, utility bill, medical bill, rent or mortgage payment, ask about a payment plan. Some creditors and utility companies have hardship programs that let you reduce or extend your payments, but you may have to reach out to your lender or landlord directly.
Local financial assistance programs
There may be nonprofit organizations and charity groups in your community that help people in need with groceries, clothing, transportation, home repairs, utility bills or rent assistance. Start your search for help at www.211.org.
Capital Good Fund
Capital Good Fund is a nonprofit lender that accepts borrowers with thin or no credit history for emergency loans up to $1,500 in a handful of states. The lender doesn’t have a minimum credit score requirement but will review any credit history you have. Capital Good Fund also provides loans for immigration expenses and home weatherization in some states.
» Need help paying your bills? This tool can help
Frequently Asked Questions
What’s the difference between a soft credit inquiry vs. a hard credit inquiry?
Even a no-credit-check lender may do a soft credit inquiry. This type of credit check can be done without your knowledge, but it doesn’t affect your credit score. Soft checks happen when you pre-qualify for a personal loan or receive a credit card offer in the mail.
A hard credit check requires your consent. It’s triggered when you submit a formal application for credit, and it usually causes your credit score to dip by a few points. Hard credit inquiries typically affect your credit score for one year but stay on your report for about two years.
» LEARN MORE: Soft vs. hard credit inquiries
Do no-credit-check loans have guaranteed approval?
Although no-credit-check lenders have less barriers to approval than traditional lenders, loan approval is not always guaranteed. You might have to meet other criteria, such as having steady income and a valid bank account or living in a state where the lender does business. Be wary of lenders that offer a blanket guarantee of loan approval for all.
What’s an example of the costs of a no credit check loan?
A one-year, $2,000 personal loan with a 36% APR will have monthly payments of $201. That same loan through a no-credit-check lender with an APR of 200% would run you $396 a month — nearly double the cost.
The loan with the 36% APR would cost $2,411 overall, while you'd pay $4,746 for the loan with the 200% APR.
Article sources
NerdWallet writers are subject matter authorities who use primary,
trustworthy sources to inform their work, including peer-reviewed
studies, government websites, academic research and interviews with
industry experts. All content is fact-checked for accuracy, timeliness
and relevance. You can learn more about NerdWallet's high
standards for journalism by reading our
editorial guidelines.
