June 16, 2024

A non-credit-check loan can appear as the only quick cash solution if you have a poor credit rating or no credit past. However, some loans without credit checks are perilous, especially those with astronomical interest rates and short payback periods.

Regardless of the type of non-credit-check financing you are eyeing, do a thorough background check on the lender and the terms — to avoid biting more than you can chew, have a plan to repay the loan before you borrow.

Four non-credit-check loan alternatives

Overview of lenders that don’t demand credit checks

High-interest installment loan.

High-interest installment loan.

Limits: Up to $100 each day; a maximum of $750 each pay period.

  • Rapid funding fee (optional): Ranges from $1.99 to $4.99.

Note: NerdWallet utilizes unique methodologies to rank high-interest personal loans, cash advance apps, and buy now, pay later apps. You can learn more about these star rating methodologies for personal loans, and cash advance, as well as, BNPL apps.

OppLoans: High-interest installment loans with no credit checks

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OppLoans are expensive, short-term loans accessible in most states. All loans come with three-digit annual percentage rates, regardless of the creditworthiness or repayment ability of the borrower.

OppFi, the fintech platform that avails OppLoans, examines applicants’ bank account activities to assess their monthly cash flow. Instead of conducting a hard credit pull, the platform looks at bank account transaction data to determine whether borrowers can repay the loan.

OppFi reports payments to the three big credit bureaus: Equifax, Experian, and TransUnion.

OppLoans’ rates, term durations, prices, and the states that accept them:

No fees for origination, late payments, or prepayment.

AK, AL, AR, AZ, CA, DE, FL, HI, ID, IL, IN, KS, KY, LA, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI, and WY.

  • Reports payments to the three main credit bureaus.

  • Payment due date is compatible with borrowers’ pay schedules.

  • Does not execute a hard check on your credit.

  • Interest could amount to over half of the loan sum.

  • Does not provide pre-qualification.

Requirements for borrowing OppLoans:

  • Minimum monthly gross income of $1,500.

  • A functioning bank and consistent source of income.

  • Be receiving paychecks via direct deposit.

  • Reside in one of the states where OppLoans operates.

  • Be at least 18 years old.

EarnIn is an application that enables users to borrow up to $750 from their earnings before payday, in $100 daily increments. While some other apps provide more immediate borrowing capability, a $750 limit between paychecks is relatively high. EarnIn doesn’t necessitate obligatory charges, but there are optional gratuities and fees for same-day disbursements.

EarnIn is strictly available to consistently salaried employees with a fixed work location or a work email address from their employer. The app doesn’t perform credit checks, neither hard nor soft, to assess eligibility. Instead, prospective borrowers must provide concrete evidence of their work hours.

EarnIn Conditions, Fees, and Time-frame

Up to $100 per day and $750 per pay period.

  • Optional expedited service fee: $3.99 to $4.99.

  • Optional tip: Up to $13 per advance.

Repayment is withdrawn from your bank account on your next direct deposit day.

Advance provision time-frame without expedited service fee

Advance provision time-frame with expedited service fee

### Borrowing With EarnIn Requirements ###

– Must be a U.S. resident and at least 18 years of age.
– A consistent direct deposit schedule.
– A fixed work location, employer-provided email address or electronic timesheet.

## Afterpay: Buy Now, Pay Later Loans without Credit Checks ##

![Afterpay Logo](https://investmentshoax.com/wp-content/uploads/2024/04/Afterpay_Logo.png)

Afterpay is an enterprise that allows purchases to be divided into smaller repayments. Initial user maximums start at $600 and can increase over time. There’s no interest charged by Afterpay, but late fees can reach a maximum of $8.

Afterpay only performs a soft credit check during your application. It divides your shopping bill into four equal payments with one due immediately at checkout and the other three payable in biweekly intervals.

### Afterpay Rates, Terms, Fees, and Accessibility ###

– Available online and in retail outlets.
– Performs soft credit checks.
– Option to reschedule a repayment.
– Account is temporarily frozen if a payment is missed.

### Considerations Prior to Applying for No Credit Check Loans ###

Here are a few of the main factors to think about before applying for a loan that does not involve a credit check.

Additional qualification criteria: Not all lenders that do not require credit checks have credit score standards. However, some may have stipulations regarding your income and U.S. citizenship status or residency. Others that carry out soft credit checks may necessitate you to have some credit history.

Credit reporting: Verify if your lender reports repayments to the three primary credit bureaus. Typically, this information is available on the lender’s website or can be found by reaching out to their customer service. When loan repayments are reported to these bureaus, timely payments can build and improve your credit score.

Damaging your credit score: Lenders who report to credit agencies can damage your credit rating if you do not meet your repayment obligations. This is particularly true for lenders who charge high interest rates, as their loans can often be challenging to repay.

Collection agencies: If you fail to repay a no-credit-check loan, certain high-interest lenders and some buy now, pay later applications may send your account to a collection agency. Typically, this happens between 120 and 180 days after your last payment. Debt collectors may attempt to contact you by phone, mail, email, or text. Most cash advance applications, however, will not send unpaid advances to collections.

Interesting fact…

Under the Military Lending Act, it is illegal for a lender to offer a loan with an annual percentage rate (APR) that exceeds 36% to active duty military personnel, their spouses, or certain dependents. If you are a member of the military, a spouse, or a dependent, a lender may reject your loan application to comply with this law.

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Upgrade welcomes customers with lower credit scores, providing competitive rates, varied rate discount options, and credit-monitoring tools. The platform has unique attributes for debt consolidation and home improvement loans.

Shopping tips for no-credit-check loans

If obtaining a loan without a credit check is your only option, here are some strategies to avoid predatory lenders.

  • Check the APR. By law, lenders are required to disclose the APR before you sign a loan agreement. The APR will allow you to compare the loan’s affordability with others.

  • Choose a lender that assesses your repayment capability. Concrete signs that a lender is concerned about your ability to repay the loan are checking your bank account information, conducting a soft credit pull, referencing alternative credit bureaus, and asking for proof of income. Lenders that lack this concern may be expecting you to pay off the first loan with a second loan—the beginning of a debt cycle.

  • Understand the repayment terms. Be aware of your payment date and how the lender will collect the money, whether you agree to repay in two weeks or in a few months. If the lender will debit your bank account, make sure the money will be readily available upon your payment date to avoid overdrawing.

  • Examine the amortization schedule. For loans requiring multiple payments, request to see the amortization schedule—a table illustrating the breakdown of each payment towards the loan’s principal and towards the interest. This schedule will ensure that each payment at least partly pays down the loan’s principal.

  • Verify the lender’s license. All lenders must be registered in the states where they operate, and many will list their licenses on their websites. 

  • Be wary of scammers. A trustworthy lender will not demand that you send them money or a gift card before granting you a loan. If a lender asks for either, it’s probably a scam.

Alternatives to no-credit-check loans

Online loans

Certain online lenders accept applicants with poor credit, even those with credit scores under 600. Some lenders may consider additional data, such as employment status and any outstanding debt. Although loans for people with bad credit typically entail higher rates, they usually do not exceed 36%.

Co-signed or joint loans

If your credit score is low, you may want to consider adding a co-applicant with a better credit profile. A co-signer is someone who vouches for your repayment ability without having access to the loan funds, while a co-borrower is someone who shares both the loan funds and repayment liability. Regardless, in both scenarios, your co-applicant would be responsible for the loan payments if you fail to make them.

Secured loans

Secured loans tend to have more lenient credit requirements than unsecured loans, enabling applicants with fair or bad credit scores to potentially get larger loans or lower rates. Most online lenders accept a vehicle as collateral; however, banks and credit unions often prefer collateral in the form of a savings or investment account. It’s essential to weigh the benefits and risks of adding collateral, as you could lose that collateral if you miss too many payments.

Family loans

Consider asking a trusted individual to help you pay for a bill, rent, or groceries. Although this may be a difficult question to pose, it can safeguard your credit score and save you from committing to a high-interest or payday lender. Both you and your family member can establish a contract outlining the loan amount, repayment period, and repayment method.

Payment plans

If delaying a credit card bill, rent, utility bill, or mortgage payment for a month or two would provide enough relief, you might want to inquire about a payment plan. Some creditors and utility companies offer hardship forms, allowing you to request an extension. Conversely, you may have to contact your landlord or lender directly.

Credit union loans

Numerous credit unions offer small personal loans that start at around $500. To qualify, they may consider information beyond your credit score, such as your membership history. Federal credit unions set a maximum rate for personal loans at 18%. Additionally, some credit unions provide small-dollar loans called payday alternative loans, or PALs, which have a maximum APR of 28%.

Capital Good Fund

Capital Good Fund is a nonprofit lender that offers emergency loans of up to $1,500 to borrowers with thin or non-existent credit histories. The lender does not require a minimum credit score but will evaluate any existing credit history. In addition to this, Capital Good Fund offers loans for immigration expenses and home weatherization in select states. With rates ranging from 12% to 16%, Capital Good Fund