There’s no hidden meaning behind the phrase “no-credit-check loans” – that’s exactly what they are. The majority of loans include a credit check, for which loan lenders look at your credit history to see past debts and defaulted payments, in order to determine the approval status of your loan and also to establish the loan’s interest rate.
Getting approved for no-credit-check loans, however, only requires you to demonstrate a capacity to repay the loan. For example, pay stubs or bank account statements can show lenders how much you earn and, thus, how much you can afford to repay on a loan.
There are a million reasons you might need extra cash – from covering an urgent and unplanned expense to paying for a car to get you to and from work – and it might feel like you don’t stand a chance at qualifying for a personal loan unless you turn to aggressive payday lenders.
For most people, there are numerous other options available; and, although a poor credit score and inconsistent credit history can limit personal loan choices, even individuals with bad credit can usually find an alternative lender.
There are countless loan providers who specialize in loans for bad credit and, depending on the amount of money you need, you might be able to find a loan with one of them. The biggest question for most people with bad credit isn’t about finding a loan, it’s simply about which loan option is the right one for them.
That’s why we put together this list of trustworthy and affordable lenders.
Top 5 Picks For No Credit/Bad Credit Loans 2021 [Reviews]
- MoneyMutual: Overall Top Recommended For Loans With No Credit Check
- BadCreditLoans: Emergency Bad Credit Payday Loans
- CashUSA: Guaranteed Loans with No Credit Check
- PersonalLoans.com: Quick Personal Loans With Bad Credit
- CreditLoan: Get Fast Online Loans For Bad Credit
#1. MoneyMutual – Overall Top Recommended For Loans With No Credit Check
- Submit a quick and easy application on their secure website.
- Request help from more than 60 available lenders.
- Get funds transferred directly into your bank account in as little as 24 hours.
- Join more than 2 million people who have trusted this loan referral service.
MoneyMutual is an online marketplace that connects qualified applicants with quick-acting lenders who are in a position to offer borrowers fast loans.
MoneyMutual’s reputation and popularity have become so well-known thanks to their series of tv commercials with celebrity spokesperson Montel Williams, who promises they are a trustworthy and reliable source for anyone who needs to find short-term installment loans without the hassle of traditional lenders.
MoneyMutual’s loan network was created to resolve the financial anxiety of Americans, and they were initially motivated to act upon finding out that nearly 4 in 10 people would not be able to come up with even $400 in the event of an emergency. Since their inception, MoneyMutual has worked with over 2 million people who needed quick funding to cover an unexpected expense and other personal goals.
Even for individuals with bad credit, the process for finding a loan lender is simple and straightforward with MoneyMutual. Submitting one simple, free, and secure online form is all you need to do in order to start getting connected with loan lenders. Approved borrowers generally get a loan between $250 and $2,500, but each individual’s qualifications determine the maximum loan amount. After reviewing your application, lenders who are willing to work with you will reach out with their loan offers.
In theory, this marketplace should create a level of competition that offers consumers better rates from loan lenders, but in actuality it has been well-established that MoneyMutual intentionally matches consumers with major credit bureaus and international companies which charge illegally high interest rates. However, for people with bad credit or no credit, the alternatives to this kind of lender may be few and far between.
- The website is easy to navigate and use.
- Borrowers are matched with loan lenders.
- Use of the platform is free for consumers.
- No-credit-check loan application in just 5 minutes.
- Predatory interest rates are alleged in numerous lawsuits.
- Loan terms and conditions vary by lender.
- Customer service availability varies by lender.
Consumers regularly complain about some lenders’ high interest rates, but this is not a complaint about MoneyMutual’s service itself. As far as MoneyMutual-specific issues are concerned, some users report problems with bank accounts, payday loans, and fine print language.
#2. BadCreditLoans – Emergency Bad Credit Payday Loans
- Submit your free loan application to connect with lenders.
- Apply for loans valuing up to $10,000.
- Take advantage of 24/7 service that offers privacy and security.
- Put your trust in a company that is dedicated to lending responsibly.
BadCreditLoans is not an actual lender – rather it is a service that advocates for consumers and matches them with willing lenders who are able to make no-obligation offers.
BadCreditLoans analyzes the information provided in your application to help them find lenders with loans that work for your situation. The types of loans offered range from installment loans to payday loans, depending on the lender, and some lenders are only willing to work with individuals who have excellent credit scores.
In addition, BadCreditLoans can also help by saving you time that would otherwise be spent pursuing frustrating, tedious, and fruitless phone calls, internet surfing, and sales pitches. Just leave it in the hands of BadCreditLoans and let them find a loan lender for you based on the information you submit.
This platform is ideal for individuals and business owners who are interested in obtaining a loan to cover financial commitments, and who have the ability to make consistent repayments.
BadCreditLoans can connect you with lenders who offer loans between $500 and $5,000, with terms varying between 3 and 36 months, and APR between 5.99% and 35.99% – monthly payments, interest rates, etc. depend on the chosen lender.
- The website is easy to navigate and use.
- A single application reaches multiple loan lenders.
- Geared toward consumers with bad credit scores.
- Loan amounts are relatively small.
- The Better Business Bureau rating is inadequate.
- Application is extensive and includes providing banking details.
In spite of bad credit scores, satisfied consumers have heaped praise on BadCreditLoan for their response times, quick funding, and high approval rates. However, other consumers have expressed concern over the security and privacy of their personal data.
#3. CashUSA – Guaranteed Loans with No Credit Check
- Submit your fast and free application for lenders.
- Qualify by meeting simple requirements.
- Apply for loans valuing up to $10,000.
- Put your trust in a website that offers safety and security.
CashUSA is an internet-based service that matches borrowers with loan lenders. The main difference between this online loan marketplace and others is that provided loan amounts are generally on the lower end of the spectrum.
With a single, free application on the CashUSA website, you can gain access to a list of lenders who might be able and willing to approve your loan; this extensive network of multiple lenders ensures that loans are available for borrowers with any type of credit history.
People with bad credit scores or urgent needs take advantage of CashUSA’s services to get in touch with lenders who can deliver funds that are needed.
It might be easier to qualify with CashUSA’s lender network because a credit check and a high credit score are not required, but bear in mind that a consequence of this type of arrangement is that you will likely end up paying a higher interest rate than you would at a bank.
CashUSA prioritizes protecting user data and customer privacy by employing the best possible measures to prevent borrowers’ information from being compromised.
- Available loan offers can be compared before selecting.
- The application is free and easy to submit online.
- Customer support is accessible and responsive.
- Approval is quick so there’s little waiting around.
- The network of lenders includes all 50 states.
- Borrowers with bad credit are eligible for loans.
- The qualification requirement of at least $1,000 monthly income may be inaccessible.
- The maximum loan amount offered is $10,000 by some lenders.
- High interest rates may be unsustainable for some borrowers.
CashUSA does not have multiple reviews on Trustpilot; the only user who evaluated the company complained about sketchy collection practices.
CashUSA is registered with the Better Business Bureau, but its profile is lacking in details and reviews, and its failure to respond to complaints listed there has earned the company an F rating with the Better Business Bureau.
#4. PersonalLoans.com – Quick Personal Loans With Bad Credit
- Take advantage of the best service for finding personal loans.
- Request anywhere between $1,000 and $35,000.
- Receive your funds in as little as 24 hours.
- Find loans with easy repayment terms.
PersonalLoans is an online service that matches borrowers with potential lenders and lending partners who are willing to make them a personal loan offer.
People who are in need of emergency funds can take advantage of this platform, which offers peer-to-peer, bank, and installment loans to consumers.
PersonalLoans’ lenders offer a wide range of terms – with loans of $500 to $35,000, varying APRs of anywhere from 5.99% to 35.99%, and repayment terms between 3 and 72 months.
The process of getting matched with a lender typically takes just a few minutes, and then you will be able to view the lender’s proposed agreement, with terms and conditions laid out.
PersonalLoans.com does not engage in the practice of initiating hard inquiries into your credit history – but some lenders may do so, and this could result in a temporarily lowered credit score; this penalty of a few credit score points is much less harsh, however, than defaulting on loans or bills due to lack of funds.
- Funds are sent in as little as 1 business day.
- The online application process is fast and simple.
- A large lender network offers a wide range of loans.
- Borrowers with credit scores as low as 580 can qualify.
- The eligibility requirements for borrowers are extensive.
- The loan applications request a lot of personal information.
- Consumers with low credit scores or poor credit history, as well as those who have faced a recent bankruptcy or developed a pattern of late payments, may have better luck elsewhere.
PersonalLoans.com is not accredited with the Better Business Bureau, and the company’s profile of information, reviews, and updates is inadequate.
With that being said, customers’ reviews on Trustpilot are positive, giving PersonalLoans.com an overall rating of 4.2 out of 5 stars. A majority of consumers appear to be satisfied with both the speed of funding, and the quality of customer service.
#5. CreditLoan – Get Fast Online Loans For Bad Credit
- Take advantage of a secure service that is fast and free.
- Get peace of mind with TRUSTe verification.
- Receive funds in as little as 24 hours.
- Find smaller loans for lower amounts of funds.
Over more than 20 years in business, CreditLoan has built a large network of lenders which has helped connect more than 750,000 customers with lenders nationwide.
CreditLoans separate lending networks for consumers are based on applicants’ credit scores, ensuring that borrowers’ requests land in the hands of lenders who are willing to help.
Despite Credit Loans willingness to accept loan applications for values up to $25,000 – consumers with bad credit are restricted to loan offers of $5,000 at the most. Even if you’re in need of a smaller, short-term loan, CreditLOan has your back with offers as small as $250.
$5,000 is considerably larger than the average subprime loan, and could be beneficial for your finances, especially as compared to competitive student loan, auto loan, and personal loan interest rates.
- Loans between $250 and $5,000 are available.
- Approved funds are direct-deposited into your account.
- Lenders share funds as soon as agreements are approved.
- Bad credit is not a deterrent to eligibility.
- High interest rates may be unsustainable for some borrowers.
- Consumer reviews indicate some issues with the trustworthiness of this company.
CreditLoan, like most online lenders, has a mix of good and bad reviews.
Most of the negative reviews seem to come from applicants who were not approved for a loan, though that hasn’t prevented CreditLoan from maintaining a relatively high rating on most review sites.
Like all loans for people with bad credit – regardless of the lending source – interest rates will be higher than they would for consumers with good credit.
All loan terms, like the APR and any fees, will be shared by the lender before you can accept the loan. Read all information carefully to discern whether the loan is right for you in your current situation.
Considerations to Keep in Mind When Applying for No Credit Check Loans
- How Much Money Do You Need?
Before doing anything else, you’ll need to be aware of how much money you need to cover the intended expense. Some lenders offer personal loans as small as $500, but the majority of lenders require a minimum loan value of $1,000 or even $2,000.
If you don’t need as much as $500, you might have more luck asking for a credit card cash advance, or borrowing money from family members or friends – assuming you’re in a tight spot and are unable to save up the funds in advance.
- What Are the Terms for Repayment?
You will need to start paying back the lender within 30 days. Most lenders allow for repayment terms of 6 to 84 months, over the course of which they expect monthly installments to be paid, but the actual interest rates and payments will be determined by the length of your chosen loan.
- What Is the Interest Rate?
The interest rate on your loan will depend on several factors: your credit score, the amount of the loan, and how long it will take you to repay it (the term). Interest rates range from 3.49% on the lower end of the spectrum, all the way up to 29.99% or more on the higher end.
The lowest interest rates are usually given to borrowers with good or excellent credit who choose the shortest repayment term possible.
- How Long Will It Take to Repay the Loan?
When applying for a personal loan, you can choose which repayment plan works according to your income level and cash flow. Sometimes, lenders will provide an incentive for using autopay, such as lowering your APR by a quarter or even half a percentage.
Some people would rather make monthly payments that are as low as possible, so they go with options that allow them to repay their loan over the course of several months or years; other people prefer to pay off a loan as quickly as possible, so they choose a higher monthly payment.
If you choose a low monthly payment with a long repayment term, you will often face a higher interest rate. It may not be obvious at first glance – because the monthly payments are so much smaller – but over the lifetime of the loan, you will end up paying more money.
A general rule of thumb for borrowers is to limit debt obligations to a maximum of 35% to 43% of monthly take-home pay. This means, if you usually bring home $4,000 in a month, you should avoid exceeding $1,720 in mortgage, car loans, and personal loan payments.
- What Is the Annual Percentage Rate?
An annual percentage rate (APR) is a percentage value that refers to the cost of the loan each year, including interest and lenders’ extra charges – like activation or origination fees.
Some major credit bureaus may charge a fee to sign up (origination fee) but most only charge interest.
An origination fee is charged by lenders as a one-time, upfront subtraction from your loan, intended to pay for administration and processing costs; these are usually set between 1% and 5% of the loan, but some lenders charge a simple flat-rate fee.
For instance, if you are approved for a loan of $10,000, a 5% origination fee would mean that you receive only $9,500 and the remaining $500 would be returned to the lender; if possible, avoid origination fees.
- What Is Your Credit Score?
It’s important to know your credit score before applying for personal loans in order to make sure you are able to qualify for the most fitting no-credit-check loans. The majority of personal loan lenders are interested in working with applicants who have a good credit score and consistent credit history – and online banks are particularly notorious for this.
All the same, if you already have an existing relationship with a bank, you may be able to get approved for favorable loan terms if you have a reliable history of paying your bills on time, and honoring any past loans’ and accounts’ terms.
- How Long Will the Loan Take Process?
If you qualify for a bad credit loan, funding could be acquired on the same day, or it could require up to a week of waiting for the right lender. As part of the approval process, lenders might ask for more documentation, including pay stubs or W-2s, which could also affect the funding time of a loan.
- What Effect Do Personal Loans Have on Your Credit Score?
Taking on an installment loan is not, by nature, going to boost your credit score significantly, but using a personal loan to repay revolving debt will cause a more noticeable improvement to your credit score.
Unlike personal loans, which are a form of installment credit, credit cards are considered revolving credit. Having a mix of both types of credit will help you look better to lenders.
Although it’s helpful to have a diverse mix of credit, it’s not the most essential element to a good credit score. Some people advise adding a new installment loan – for example, a car loan or a mortgage loan – which could raise your credit score somewhat, but what’s the point of owing more debt unless it’s necessary?
What You Need to Get a Bad or No-Credit-Check Loan
- Credit Score
Consumers typically need good or excellent credit and credit history to get approved for a personal loan, although some lenders offer additional options for borrowers with fair, poor, or no credit. You should check your credit score and credit report beforehand to make sure you’re ready to apply for a loan.
Loan approval can come down to the information on your credit report, so it’s a good idea to know what it says about you.
Your credit score also determines what APR you’re given, as well as how much you’re permitted to borrow. As a general rule, borrowers with excellent credit receive offers with the most competitive rates.
If you need to improve your credit score, focus on making all your monthly payments on schedule, paying down any existing account balances, and avoiding new credits.
If you’re looking for a no-credit-check loan, or if you have bad credit, you’ll likely be asked to prove you have a steady source of income – most often by showing pay stubs or tax returns. Like a credit score, how much a consumer earns can be a major deciding factor in whether or not a personal loan is approved.
For instance, if you are making a good salary working at a well-reputed and industry-dominant company, your creditworthiness might not be so much under question. For the most part, personal cash loans are approved if it is determined that you are capable of repaying the loan in a timely manner thanks to your financially stable circumstances.
Consumers who don’t meet lenders’ requirements on their own, may be able to qualify by having a creditworthy cosigner who is willing to apply with them. Be aware, however, that not all lenders permit cosigners on personal loans, and be prepared to look at other options.
- Prequalify for Loans Through Multiple Lenders
A number of lenders review and analyze your potential creditworthiness without checking your credit report and causing a hard inquiry to damage your score.
Some lenders offer prequalification tools that allow you to compare offers and determine your odds of getting approved for a personal loan with favorable terms. Applying for pre approval can also help you avoid unnecessary hard inquiries for loans you’re not even going to be offered.
Pay attention to lenders’ websites, and look for a button that says “Check Your Rate” – an invitation to submit your information and find out where you stand.
Online prequalification applications might ask you to share information about your income and housing payments, expectations about how much you would like to borrow, what your intended use for the loan is, and what your ideal loan term might be. It’s a good idea to have this information at the ready before you start filling out any forms.
- Complete a Full Application
Prequalifying for a loan gives you a window of time – sometimes up to several weeks, depending on the lender – to proceed with a formal application. If an offer expires, there’s no need to worry since you ought to get a comparable offer as long as your income and credit information haven’t changed.
The information requested for these applications varies from lender to lender, but expect to provide basic contact information and identity details, including your Social Security and driver’s license numbers.
Alternatives to Bad Credit and No-Credit-Check Loans
- Short-Term Loans
Short-term loans, in some cases, include bad credit loans – but these loans are usually for smaller amounts of money; consumers who don’t need much funding may choose this alternative to standard bad credit loans.
This convenient option ensures you can still borrow money, but you may come up short on funds for your intended expense. If you’re looking for more than a few hundred dollars, it might be best to keep looking.
An overdraft may be one of the easiest forms of borrowing, due mainly to the fact that it is simply an extension of a current account, as opposed to an entirely new financial product from a new lender. All the same, there is an application process through which your account provider will evaluate whether or not they are willing to give you an overdraft based on a check of your credit score and credit history.
While overdrafts can certainly be relied on for some additional funds, they really serve more as a protective measure than a dedicated form of borrowing, particularly since you might incur a daily charge simply for using it. Unless you are capable of repaying the loan quickly, so as to avoid associated fees, this may not be the right alternative for you.
- Credit Builder Card
If you are interested in improving your credit score while also having access to a little extra money, a credit builder card can be a good alternative – although you probably won’t be able to borrow a large lump sum. Maybe you would get more funding from a bad credit or no-credit-check loan, but this is a guaranteed credit limit that you can spend.
This may also be a good alternative for individuals who want to try actively improving their credit score in order to better their access to other financial products later on, especially anyone who may be thinking about future mortgage applications.
- Secured Loan
Consumers who want to borrow a higher amount may find this type of loan to be a good alternative; however, the risk to borrowers can be much higher due to the secured nature of the loan.
A loan being ‘secured’ means that it is backed by some kind of valuable asset, like your house, which could result in said asset being forfeited in repossession if you happen to default on loan repayments.
If you’re unbothered by this level of risk, or if you’re interested in borrowing a larger amount of funds, this might be a viable alternative even with a bad credit score; however, taking into consideration the rather extreme consequences that are brought about as a result of failing to repay, it may be best to look around for other, unsecured options as well.
- Local Credit Unions
If you find yourself in a financial emergency, with bad credit (or no credit at all), you might consider turning to a payday lender – but a lot of credit unions offer a payday alternative loan, known as PAL.
These small loans, both PAL I and PAL II, are regulated by the NCUA (National Credit Union Administration). Qualifying borrowers may receive up to $1,000 for PAL I loans, and up to $2,000 for PAL II loans.
FAQs About No-Credit-Check Loans
Q. What Credit Score Range Is Considered Bad Credit?
Most lenders follow the FICO model, with credit scores ranging from 300 to 850 points; subprime borrowers include consumers with FICO scores under 670 points, which is considered a fair rating – with scores under 580 points being considered “very poor.”
It cannot be understated how expensive it can be to take out a personal loan when you have bad credit. Based on your credit rating, interest rates could exceed 30%, you could be ineligible for larger loan amounts, and you could face shorter repayment terms.
Q. What’s the Breakdown of Credit Score Ranges?
- 800 – 850 is Excellent
- 740 – 799 is Very Good
- 670 – 739 is Good
- 580 – 669 is Fair
- 579 – 300 is Poor
Q. What Are the Standard Interest Rates for Bad Credit Borrowers?
Remember, borrowers with scores under 670 points are considered ‘subprime’ and scores under 580 points are considered ‘very poor’.
It is difficult to predict the exact APR you will be offered because each lender sets its own criteria and thresholds for approval and pricing of personal loans.
Personal loan interest rates might fall anywhere between 5.5% and 36% but you should expect to receive offered rates on the higher end of the spectrum if you have a poor credit rating.
Q. Where Can I Apply for a No-Credit-Check Loan?
A lot of online lenders and payday lenders provide loans without credit checks, but it is important to keep in mind that easy qualification doesn’t mean easy repayment; these loans can be tied to extremely high interest rates and countless hidden fees.
Q. Do I Qualify for a No-Credit-Check Loan?
If you have a stable income, a reasonable debt-to-income ratio, and a steady job – you likely qualify for a no-credit-check loan. You will probably need to provide references, bank statements, and pay stubs so that your lender can verify this information.
Q. Are Bad Credit Loans Trustworthy and Legitimate?
It is safe to borrow a personal loan from a reputable lender, but do your due diligence to confirm you are dealing with a trustworthy funding source; check out company reviews and reports, and keep a level head when evaluating offers that seem too good to be true. Make sure your personal loans are backed by a bank that is a member of the FDIC, or by a credit union that is NCUA-accredited.
Fraud Red Flags:
- Pay history or credit score isn’t requested.
- The lender’s website is not secure.
- The lender guarantees approval, no matter what.
- The lender is not upfront and direct about fees.
- The lender is pushy or aggressive about accepting an offer.
Q. Is a No-Credit-Check Loan the Right Option for Me If I Have Bad Credit?
It’s possible that you may be able to find an adequate loan with favorable terms from any of the lenders mentioned here, but keep in mind how much you can afford with your current circumstances and avoid borrowing more than you will be able to repay; don’t forget that failing to repay the loan could result in harmful consequences for your credit rating.
Q. How Long Does It Take to Get a No-Credit-Check Loan?
Some of these loans go through quickly, with approval, acceptance, and funding happening within 24 hours. Other, larger loans – especially those requiring collateral or a guarantor, could take several days or weeks to process.
Q. Can I Get a Loan If I Don’t Have a Job?
Though it may be harder to do so, it is possible to get a personal loan even if you are unemployed. Your odds increase if you can show some alternative source of steady income – like disability benefits, freelance work, or a spouse’s income.
Q. What Documents Do I Need to Apply for a No-Credit-Check Loan?
Specific requirements vary according to each lender, but there are some things you should generally have ready to go when applying for a loan, including:
- Photo ID, like a driver’s license
- Social Security number
- Tax returns showing previous income levels
- Pay stubs showing current income levels
- W-2 forms showing employment records
Q. What Can I Use a Personal Loan For?
Your lender may have specific limitations or exclusions, but some common purposes include:
- Consolidating debt
- Refinancing credit cards
- Financing home repairs
- Offsetting relocation expenses
- Supplementing travel costs
- Covering auto repairs
- Paying medical bills
Having bad credit in a financial emergency doesn’t necessarily mean that your only loan option is a predatory payday lender. You might have other, more affordable solutions available if you compare all of your options.
Like any industry, certain companies gain a public reputation as being the best place to go for a particular product – and the same holds true for bad credit loans.
Nonprofit credit unions, as well as owner-operated businesses, have acquired a reputation over the years as being good places to find bad credit loans – mostly thanks to the support they offer members, making consumers feel like somebody is willing to go the extra mile for them.
Online lenders, such as MoneyMutual, BadCreditLoans, CashUSA, CreditLoan, and PersonalLoans.com are an alternative and more flexible option for people who have bad credit or no credit, and who are in need of a fast personal loan.
If you find yourself in need of a little financial assistance, don’t let your personal credit history stop you from searching for willing lenders.