If you’ve got bad credit, it might feel impossible to get a loan.
Most creditors and moneylenders require a credit check to give out a loan, so having bad or no credit makes it an uphill battle. You’ll be happy to know, however, that there are ways around the credit check if you’re willing to be a little bit crafty.
Today, we’re going to give you 7 top-secret tips on how to get a loan with no credit check. It’s not going to be easy and it might be risky for your long-term financial situation, but when you’re hard up, taking the risk can be worth it.
When you need fast money, you’ve got to do what you’ve got to do. Let’s get you a loan.
Learn How to Get a Loan With No Credit Check
Do you know what your credit score is?
Before you go headlong into a risky situation, you should check your credit. It might be better than you think, but it’s true that your credit needs to be in great standing to get a substantial loan from a lender.
That’s why taking the beaten path feels like a more viable route than the highway a lot of the time. If you’ve had a sketchy financial past, lenders and credit card companies will find ways to burn you, even if you’re doing well now.
1. Exhaust All of Your Traditional Lending Options
If you’ve got the time to, try finding a traditional lender that’ll give you a loan without a credit check. We understand that in these situations, time is literally money, so you might not be able to search for the right bank or moneylender.
It’s important that you understand when you go the non-traditional route, you’re likely going to find much stricter loan terms and higher interest rates than with a normal lender. That’s why it’s good to know that you’ve exhausted all of your options before you commit to finding a loan without a credit check.
2. Show Them What You Do Have
Most traditional lenders will immediately shut you down when you tell them that you want a loan without a credit check, but some may hear you out. Show them that you’ve got gainful employment and some assets and they may reconsider.
Bring in a pay stub from your employer and reference letter, if your boss will give you one. These types of things tend to go further than simply telling the lender that you’re employed with so-and-so.
If you’ve been good about paying rent, car payments, and current credit cards, you can bring transcripts of those payments too. It’s all about showing them that you understand that your credit might not be good enough, but that you’re reliable now and they can feel safe giving you the loan.
Even if they still shut you down, at least you know you’ve tried to do it the traditional way and there’s no other choice but to go a different route.
3. Go Online
Online lenders are in place for people that aren’t able to get loans otherwise. They might still require that you show them your credit report, they’ll look beyond just that to see if you’re financially stable enough to loan money to.
These lenders, also known as P2P or micro-lenders, look at your credit and other information to determine your interest rates. Online loans are usually smaller, but you might be able to get up to $35,000 from sites like Proper, Lender Club, and Kiva.
4. Payday Loans
If you just need a cash advance to pay for something ahead of your next paycheck, you may want to look into payday loans. These are usually smaller amounts of money that you obtain with the intention of paying them back within a week or two.
These services are all over the place, so a quick Google search will show you what your options are. The fees on these small, short-term loans are usually quite high (as much as $40 per $100 loaned), but they’re a good option for an emergency that can’t wait until you get paid.
5. Secured Credit Card
If you’ve got bad credit, then you know how hard it can be to get a decent credit card or an increase in your credit limit. Getting a secured credit card might not be the solution you’re looking for, but it can help you get back on your feet, credit-wise.
Anyone can get a secured credit card, regardless of their credit history. All you have to do is open an account with a cash deposit, which then becomes your credit limit. It’s low-risk for the issuer of the card and gives you the opportunity to build your credit without feeling the credit company breathing down your neck.
6. Credit Unions
Becoming a member of a credit union might give you the opportunity to take out a loan without a credit check. If you’re unfamiliar with them, credit unions are made up of people that pool their money together, as if they’re purchasing shares in a cooperative.
This is all done with the intention of giving the members better rates than banks, and yes, providing loans. To gain membership, contact one of your local credit unions. They may look into your employment, where you live, and what organizations you’re affiliated with rather than your credit history.
7. Read the Fine Print
If you’re able to obtain a loan through one of these methods, you absolutely need to read the fine print. Because you’re not getting the loan based on good credit, you’re going to see much higher interest rates and penalties for late payments.
Late payments on no credit check financing can be extremely harmful to what is already a low credit score. Only try to get one if you’re sure that you’ll be making regular payments.
Get Your Credit Back to Good
It’s always preferable to get financing from a traditional lender over learning how to get a loan with no credit check, so you need to work hard to get your credit back in good standing.
Once you do so, you’ll be opened up to a whole world of lending options. Get a low-limit credit card or a secured credit card and start building your credit today!
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