Need a Loan Without a Credit Check? Here Are 7 Better Ideas

loans without credit check

Needing a loan without a credit check is the ultimate Catch-22.

Funds are generally most available and most affordable for those who’ve built a positive credit history and might not need this kind of loan. Everyone else risks not getting approved or paying astronomical interest rates (here’s looking at you, payday loans).

So what can you do if you need extra cash but don’t qualify for good rates?

Well, it might not be easy to get the money you need right away without some help from others or without paying high interest rates. But that’s not to say it’s impossible. Here’s a rundown of what to do if you need a loan without a credit check.

7 tips if you need loans without a credit check

Before we jump into the list, take a few deep breaths. It’s totally understandable that this situation is frustrating and stressful. But it’s best not to proceed with a solution until you know it’s one you can be happy with both now and later.

With that in mind, let’s look at some of your options.

1. Research affordable personal loans

If you have bad credit and are in need of a loan, chances are you think payday loans are your only option. But you should avoid payday loans as much as possible. They’re easy to get and hard to get rid of, thanks to annual percentage rates that can reach heights of 400%, according to the Consumer Financial Project Bureau.

There are, however, some options for more affordable personal loans — and you might not need to have perfect credit to get them. Here are a few personal loan lenders we work with and their minimum FICO credit score requirements:

As you examine your choices, only take out a loan you feel comfortable with. Don’t proceed if you can already tell the monthly payments will be tough for you to meet. And if the interest rate seems higher than what you think the new credit is worth, consider other options.

For some extra help, use this personal loan calculator to ensure you know what you’re walking into if you decide to take one of these loans.

2. Establish a relationship with a credit union

The reason it’s so hard to get new credit when you have a lower credit score is that lenders believe the behaviors that led to your current score will predict the future — a future of you potentially not making your payments.

You, of course, know that’s not a complete picture of who you are. That’s why, in these moments, it can be helpful to talk to a credit union. Credit unions don’t come with the convenience factor of big banks, but they do offer a more personal experience.

Credit unions want to get to know their customers and develop mutually beneficial relationships with them. If you were to open a deposit account at a credit union and start talking to them about lending options, you can at least have a decent chance of sitting down with someone to discuss your needs.

3. Ask a trusted confidant to co-sign

If you have anyone in your life that you trust greatly and that feels the same way about you, it might be worth asking them to co-sign a loan for you. If they have good credit, that could open you up to far better interest rates and approval odds than you might have on your own.

Be careful, though. If someone agrees to co-sign for you, and you default on the loan, you not only further damage your credit, you will cause damage to their credit as well. If you have any fear at all that the loan might be more than you can handle, don’t take this step.

But if you’ve already calculated what you can easily afford to pay and just need a co-signer for approval, this could be the option that works best for you.

4. Sell any assets you can live without

Do you have stock that’s not going anywhere? A car you don’t use? Computers, phones, or household items you’ve since upgraded? Try to sell them.

No, this isn’t a loan, but it could be a way to get the cash you need. Even if the sale doesn’t get you enough money, it can help you build up a savings account for future emergencies.

5. Work overtime or pick up side gigs

Like selling assets you don’t need, picking up extra money from working overtime or taking on a side gig could help you build the cash reserves you need to either avoid the loan or at least build up your emergency savings.

Even if this won’t help you quickly enough to avoid taking out the loan, it can help create some breathing room during tough financial times. This will be especially true when you get the loan and start repaying it.

6. Borrow from family

Let me start by apologizing for the obviousness and potential discomfort of this suggestion. But hear me out. Because if the only loan you can get is one with a super-high interest rate, it might be worth swallowing your pride if you have the kind of family members willing and able to lend you money in times of need.

As difficult as it can be to ask for help, borrowing money from a family member could mean avoiding interest altogether, or at least (hopefully) paying little in interest. You can even present them with a promissory note to show your commitment to repay.

7. If you can, wait until your credit improves

Finally, here’s an option to consider if you don’t need the loan in the next month or two: wait.

Why take on loans without a credit check that will likely cost more than traditional loans if you don’t have to? Depending on what’s happened to your credit, you might be able to repair it in just a few months. And when you do, you’ll have access to many more credit options — and more affordable ones at that.

Here are a few things you can do to start rebuilding credit now:

  • Open a secured credit card and use it for small purchases. Pay off your balance on time and in full every month.
  • Use all of your extra funds (or take on extra work to build extra funds) to pay down existing debt more quickly.
  • Automate your bill payments so you can be sure you’ll never miss one or pay late.
  • Review your credit reports for free at AnnualCreditReport.com to make sure there are no errors on them. If there are, dispute them.

Wondering why these steps will help to rebuild your credit? Take a look at this chart.

rebuilding credit for a loan

Image credit: myFICO

As you can see from this chart, two of the most influential factors of your FICO credit score are payment history and amounts owed. And the picture doesn’t look all that different for the VantageScore credit score.

credit score breakdown

Image credit: VantageScore

FICO and VantageScore are the credit scores to watch, with FICO currently being more widely used.

According to myFICO, 90 percent of lenders in the U.S. use FICO credit scores when deciding to approve or deny someone for credit. And, since the top factors are the same for both scores, improving your credit doesn’t have to be an overly complicated task.

How to pay off the loan you end up with

So what happens if you end up getting a loan without a credit check? Start planning now on how you’ll pay it back.

Make a plan of action that includes earning extra money (if you need it) and creating a budget that lets you make at least minimum payments each month. As you chip away at your balances, you’ll build better credit over time.

With better credit, you might later be able to refinance your personal loan and avoid falling into the payday loan debt cycle.

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
  2. Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.29% APR to 11.44% APR (with AutoPay). SoFi rate ranges are current as of December 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.29% APR assumes current 1-month LIBOR rate of 1.34% plus 4.20% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2017, the one-month LIBOR rate is 1.23%. Variable interest rates range from 6.02% – 15.97% (6.02% – 15.97% APR) and will fluctuate over the term of your loan with changes in the LIBOR rate, and will vary based on applicable terms and presence of a co-applicant. Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with Citizens Bank at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, Citizens Bank checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.39% - 29.99%$1,000 - $50,000Visit Upstart
5.29% - 14.24%1$5,000 - $100,000Visit SoFi
8.00% - 25.00%$5,000 - $35,000Visit Payoff
5.99% - 16.24%2$5,000 - $50,000Visit Citizens
5.99% - 35.89%$1,000 - $40,000Visit LendingClub
5.25% - 14.24%$2,000 - $50,000Visit Earnest
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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.