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Best No Credit Check Loans in 2020

Last Updated: 11. December 2019

Are you currently looking for financing, but unable to find a provider because of bad credit?

If so, you will likely need to consider a no credit check lender. In a nutshell, such lenders will assess other areas of your financial profile when deciding whether or not to approve you – such as your income, employment status, and history with repaying loans.

If this sounds like something you’re interested in exploring further, be sure to read our comprehensive guide on the best no credit check loans in 2020.

On top of listing the best five providers currently in the market, we also discuss how the end-to-end no credit check process works, and what you need to do to ensure you don’t end up paying extortionate interest rates.

Note: No credit check loans come in a range of shapes and sizes, such as traditional installment loans, payday loans, and unsecured loans. Whichever option you do go with, just make sure that you are confident you’ll be able to meet your monthly repayments.

What is a no credit check loan?

As the name suggests, a no credit check loan refers to a financing application that does not take your FICO credit score in to account.

In fact, when lenders determine whether or not to approve your application, they won’t check your credit score at all, period.

This is especially useful if you are currently in possession of bad credit, not least because traditional lenders will typically turn you down based on your less than ideal FICO score.

Instead of looking at your credit report, the no credit check lender will look at a number of other factors, such as your income and employment status.

This means that as long as you have a steady flow of income, and the lender is confident you can afford to meet your minimum weekly/monthly repayments, then you should have no issues in getting approved – irrespective of your credit score.

However, this does, of course, come at a cost.

💸 In return for approving your loan on a no credit check basis, lenders will charge you a rate of APR that is significantly higher than what a conventional bank would charge.

💸 In fact, if opting for a no credit check payday loan, you will pay an average APR rate of 400%.

💸 Take note, some providers charge a surplus of 1,000% APR, so it’s crucial that you understand how much you are paying prior to proceeding with the loan application.

Top 5 No Credit Check loan providers – US Market

If you’re based in the US and looking to obtain a loan without having your credit checked, check out the following five providers.

1. Blue Trust Loans
 Blue Trust Loans is an online lender that specializes in bad credit loans. In fact, the lender does not take your FICO score into consideration when you make an application, subsequently giving it the title of a no credit check lender. You can borrow from just $100, up to a maximum of $2,500. However, if you are applying with Blue Trust Loans for the very first time, you’ll only be able to obtain a maximum loan amount of $1,200.

Moreover, the longest time that you can pay the money back is 9 months.

Finally – and as is the case with a lot of no credit check loan providers, Blue Trust Loans operates under local tribe laws, meaning that they have much more flexibility when it comes to charging you interest.

You can read our comprehensive Blue Trust Loans review here.

What are the Pros and Cons of Blue Trust Loans?

Pros:

✅ Loans of between $100 and $2,500

✅ Short-term funding of up to 9 months

✅ The application process takes minutes

✅ Same-day funding at no extra cost

✅ Lower APR rates offered for previous customers

Cons:

❌ Big APR rates

❌ Not available in all US states

2. Zoca Loans
 Much like in the case of Blue Trust Loans, Zoca Loans is an online lender that offers no credit check loans. Moreover, the provider also operates under local Tribe laws, so do bear this in mind. The platform offers loans to 37 US states, and the application process itself takes no more than 5-10 minutes.

The no credit check lender will allow you to borrow between $300 and $1,000, meaning that it is more suited for a Payday loan-style arrangement. One of the best things about using Zoca Loans is that the application process is conducted as a soft inquiry – meaning that the search won’t appear on your credit report.

You can read our comprehensive Zoca Loans review here.

What are the Pros and Cons of Zoca Loans?

Pros:

✅ Loans of between $300 and $1,000

✅ Same day funding is available

✅ Super fast application process

✅ Available in 37 US states

✅ Soft credit pull allows you to view your rates without impacting the credit score

 Cons:

❌ Very high fees

❌ Tribe laws allows high charges for late payments

3. Spotloan
 Launched back in 2012, Spotloan is an online lender that offers no credit check loans.

The online platform allows you to facilitate the entire application via your desktop or mobile device, meaning you can find out whether or not you are eligible within minutes.

Loan sizes are somewhat small, with the lender allowing you to borrow from just $300, up to a maximum of $800. You do, however, have between 3 and 10 months to repay the money.

Not only does Spotloan allow you to make an application without it impacting your FICO score, but if approved – funds are typically paid within 1 working day.

You can read our comprehensive Spotloan review here.

What are the Pros and Cons of Spotloan?

Spotloan Pros:

✅ Sensible loan offering of between $300-$800

✅ Suitable for those with poor or bad credit

✅ Established since 2012

✅ Fast funding times – either same-day or next-day

✅ Application does not have an impact on your credit report

✅ Multiple methods to repay the loan

Spotloan Cons:

❌ Only a select number of US states eligible

❌ Maximum interest of 490%

4. HonestLoans
 HonestLoans is a really useful online comparison platform that seeks to find you the best-priced loans.

All you need to do is enter your loan requirements, followed by some information about your personal and financial circumstances – and the HonestLoans engine will match you with suitable lenders.

However, the overarching benefit of using HonestLoans is that the platform does not check your credit score. As a result, your application will be based on other key metrics, such as your employment status, take-home income, and whether you own your home or rent.

You can read our comprehensive HonestLoans review here.

What are the Pros and Cons of HonestLoans

Pros:

✅ Very large number of lenders within its network

✅ Loans range from $400 – $50,000

✅ Covers both Payday loans and installment loans

✅ Good flexibility on loan term options

✅ Very fast application process

✅ Initial application not forwarded to main three credit agencies

Cons:

❌ Not a direct lender

❌ Not available in all US states

5. Fast5kLoans
 Similar to HonestLoans, Fast5kLoans is a third-party comparison platform that matches borrowers with suitable lenders.

One of the main selling points to using Fast5kLoans is that your application is not posted the main three credit reporting agencies. In layman terms, this means that the platform will not check your credit score.

When you initially make an application via Fast5kLoans, you will need to enter your personal information, details regarding your current financial standing, and how much you want to borrow. Once you submit the application, you’ll be able to see the lenders that are happy to loan you your required funds.

You can read our comprehensive Fast5kLoans review here.

What are the Pros and Cons of Fast5kLoans

Pros:

✅ Extensive number of lenders within its network

✅ Loans range from $1,000 – $5,000

✅ Loan terms of between 6 months and 6 years

✅ Suitable for all credit scores

✅ Find the best loan deals through a single search

✅ No fees

Cons:

❌ Not a direct lender

❌ Very outdated website with lots of spelling errors

What will no credit check lenders look for when assessing my application?

When traditional lenders assess an online loan application, they will typically utilize the three main credit rating bureaus.

This includes Equifax, Experian, and TransUnion. The reports available from the aforementioned agencies contains a vast amount of information on your financial background, such as who you have previously obtained credit from, to what value, and most importantly – whether you have ever missed a payment.

All of this information will subsequently yield a FICO credit score, which most lenders use to determine whether or not to issue you the loan. 

However, no credit check lenders will not use the main three credit rating agencies when assessing your application. Instead, they will use secondary sources in an attempt to verify the information you provide in your application. 

With that being said, we have listed the main factors that no credit check lenders will look at when you make an application.  

✔️ Your Income

First, no credit check lenders will likely ask that you have a steady flow of income. In the vast majority of cases, this needs to be in the form of regular employment. However, some lenders will consider you if your main source of income derives from other avenues – such as benefits, disability allowances, or pensions.

✔️ Your Employment Status

The lender will also want to know what your current employment status is. This covers full-time and part-time employment, as well as self-employment.

✔️ Your State

As each state in the US has its own laws surrounding lending practices, the no credit check loan provider will want to know where you are based. In some cases, the lender might not be able to offer you are a loan if you are based in a state that prohibits payday loans. Moreover, your location can also determine how much interest you pay, and whether you need to meet a minimum monthly income requirement.

✔️ Repayment History

Although no credit check lender will not use the main three credit reporting agencies, they are still likely to use secondary sources to assess your history with credit. This won’t be with the view of obtaining your FICO credit score. On the contrary, it will be to ascertain whether you have missed loan repayments in the past.

✔️ Home Ownership

Most lenders will ask whether or not you own your home, or if you are renting. If it’s the former, this will increase your chances of being approved by the lender, and will likely result in a more favorable APR rate.

What types of no credit check loans are available?

In the vast majority of cases, no credit check loans are available in two main forms – payday loans and installment loans. Here’s what you need to know.

Payday Loan

A payday loan is a type of short-term loan that requires you to pay the funds back when you next get paid.

💵 For example, let’s say that on September 4th you receive your monthly salary

💵 On September 20th, you are short of cash, so you decide to take out a payday loan

💵 You borrow $300 and agree to repay the money when you next receive your monthly salary

💵 On October 4th you get paid, and subsequently, repay the $300 you borrowed – plus interest

Installment Loan

An installment loan is a traditional personal loan that is taken out over a longer period of time. Moreover, installment loans typically allow you to borrow more than what a Payday loan would permit.

💵 For example, you need to borrow $6,000 to pay for a new car

💵 You use a no credit check lender and agree to repay the money over 5 years

💵 Every month, you make a fixed repayment, which includes your APR interest

💵 After 6 years of meeting your monthly repayments, you have settled the debt in full   

How can I get a no credit check loan?

In a nutshell, the no credit check loan process works in much the same way as any other lender operating in the online space.

Nevertheless, if you’ve never gone through the process before, we’ve listed the main steps that you need to follow below.

Step 1: Find a no credit check lender

You will first need to find a no credit check lender that meets your individual requirements.

If you scroll down below, you’ll find the best five no credit check lenders currently operating in the space.

Step 2: Start the loan application

Once you’ve found your preferred loan provider, you’ll then need to start your online application.

Initially, this will require you to choose how much you want to borrow, and for how long. Next, you’ll then need to enter some personal information.

This will include your full name, home address, telephone number, date of birth, social security number, and if applicable – your driver’s license number.  

Step 3: Enter your financial information

Although you don’t need to enter details pertaining to your FICO credit score, you still need to let the no credit check lender know what your financial standing is like.

Typically, this will include your current employment status, monthly income, home ownership status, and whether you currently have any other loan products outstanding.

Step 4: Assess your loan offer

Once you’ve completed the loan application process – which typically takes no more than 5 minutes, the lender will then let you know whether or not you have been approved.

If you have, you will then get to view your loan offer on-screen. This will include your APR rate, and whether or not you need to pay an origination fee.

Note: An origination fee is the fee charged by no credit check lenders to cover the cost of arranging the loan. Not all lenders charge one, but when they do, it can cost as much as 5% of the loan amount.

Step 5: Enter your bank details

The final stage of the no credit check loan process is to enter your checking account details.

This needs to be the account that you want your loan funds deposited into. Moreover, as you will likely be required to set-up an automatic debit agreement, this needs to be the account that you plan to make your repayments from. 

Finally, once all of the above has been completed, you should receive your loan funds within 1-2 business days, depending on the loan provider in question.  

Pros and Cons of No Credit Check Loans

Pros and cons of no credit check loans

Pros

  • Lenders do not use the main three credit reporting agencies
  • Perfect if you have poor to bad credit
  • Applications do not impact your credit profile
  • Hundreds of lenders to choose from
  • Rebuild your credit profile by always paying on time
  • 5-minute online application process
  • Funds typically received within 1-2 business days

Cons

  • APR rates can be super high
  • Late payment fees will be charged if you miss a payment

How we ranked these no credit check loan lenders

❓ How much APR the lender charges

❓ How much you can borrow

❓ How long you have to repay the money

❓ How frequently you are required to make repayments

❓ Whether an origination fee is charged

❓ Whether you can repay the loan early without being penalized

❓ How quickly you are likely to receive the loan funds

❓ Eligibility requirements

Conclusion

In summary, with banks and traditional lenders getting stricter and stricter on who they lend money to, obtaining financing with bad credit is no easy feat.

However, the good news for you is that there are now a plethora of online lenders that will consider your loan application without checking your credit.

As such, no credit lenders will instead look at other key metrics tied to your credit profile, such as whether you are in full-time employment, and how much you earn each month.

Ultimately, although obtaining a no credit check loan is relatively simple, you still need to ensure that you have the required funds to repay the loan back in full – each and every month.

Not only are your respective APR rates likely to be sky-high, but the late or missed payment fees can be crippling.

FAQs

How does no credit check loan work?

As the name suggests, a no credit check loan is a loan application that does not take your current credit score into account. Instead, lenders will look at other key metrics, such as your income, employment status, and whether you have ever missed a loan repayment in the past.

How do I apply for a no credit check loan?

As is the case with any other loan application, the entire process can be completed online. Once you’ve chosen one of the recommended lenders we have listed above, you’ll then need to go through the 5-10 minute application process. All you need to do is enter the amount you wish to borrow, alongside your personal and financial information, and you should receive a decision within less than 60 seconds.

How much APR will I pay on a no credit check loan?

One of the biggest drawbacks to obtaining a no credit check loan is that you are likely to be charged a significant amount of interest. This is to counter the risks of lending to somebody that has a historically poor relationship with credit. Moreover, if you were to miss a payment, it’s likely the late payment fees will also be high – all of which will have interest applied to them.

What happens if I miss a payment?

On top of being accustomed to late payment fees, no credit check lenders might decide to report the late payment to the main three credit agencies. This will have a detrimental impact on your already-poor credit score. On the other hand, if you always meet your weekly/monthly repayments on time, this is likely to improve your credit score.

Is it risky to obtain a no credit check loan from a Tribal lender?

The short answer to this is ‘No’. As long as you always make your repayments, then you will not run into any issues, not least because Tribal lenders still need to abide by federal lending laws. However, as they are not required to operate under state lending laws, they can essentially charge you as much interest as they wish (as detailed within your loan agreement). As such, only obtain a loan from a Tribal lender if you are confident you will never miss a payment – as you should do with all lenders.

1. Will I receive a hard Inquiry of my credit score?

Most firms will review your credit score in an effort to analyze your whole profile, it will not be used as a determinant factor for the approval. In most scenarios, a soft inquiry will be the only review they will make for your loan application. It is always recommended to ask these questions directly to the lender of your choice in order to determine their view and structure as it will vary from institution to institution.

2. I've just changed my job, is that going to affect my application?

On average most firms will create a credit profile based on your work history, your income and also your education. While changing works should not be a show stopper, certain firms expect at least 6 months of constant work in order to approve loans. In most cases, you can explain the situation, prove that it is a new job, a better wage or anything related to making your case. At the end of the day, it is going to depend directly on the person reviewing your application for them to determine if it going to affect or not.

3. How fast can I receive the funds in my Bank account?

Since most firms transfer their application processes online, the entire process can be done automatically and profiles can be reviewed by algorithms. This allows for a lightning-fast process which ultimately benefits the borrower. Instead of having to wait for weeks for your loan to be approved and disbursed, modern firms will approve the same day and deposit the money the same day or the next at the latest. It is important to mention that while applications can be sent online, in most cases there is a double check made by a person in the firm. This implies that depending on the moment of the day or the time that the application was sent, it can have an impact on the overall approval process and its timing.

4. Can I pay my loan early ?

While this will depend from firm to firm, in most cases early payments will not incur in any sort of penalty or extra charges. It is always recommended for you to ask and review all these details before committing to one provider.

5. Are there any other reasonable alternatives to a no-credit-check loan?

Keep in mind that there are many other alternatives that may allow and individual to borrow money in case of an emergency, but there is a pretty common problem related to this type of provider. One of the major concerns and complaints is the fact that some of these companies operate without a license or a due structure. Another aspect is that it’s been publicly known for some of these firms to take advantage of their clients, to the point of churning them for fees. Imagine having to deal with an aggressive collector that simply says that you owe them more in fees or penalties simply because they can and because of a sketchy and probably illegitimate contract.

 

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Kane Pepi

Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.

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