Getting a Genuine No Credit Check Loan Approval

The credit history of a borrower is a main factor used to determine whether a loan is approved or denied. Historically, consumers with bad credit were met with automatic rejection. A low credit score can still be a deal breaker for some financial institutions. But there are a number of legitimate lenders who approve loans with no credit check needed.


Getting approval for no credit needed loans is pretty simple. Basic requirements are that the applicant is over 18 years old with a full-time job, and has a bank account or debit card to make payments. Sounds simple enough. Yet a closer look is warranted to get the full picture.

Typical Reasons for Applying

The average no credit check loan applicant needs to borrow money fast for a short period of time. The funds are mostly used for some type of emergency or unexpected expense. Why would anyone choose a loan without a credit check over a traditional loan? Perhaps:

1. The applicant knows they have bad credit and they automatically apply for loans that don’t require a credit check, believing there is no alternative.

2. An individual with little or no credit accounts decides to use payments on a no credit check loan as a way to start a credit history.

3. The consumer knows that too many hard inquiries will lower their credit score. They choose a no credit check loan to avoid triggering an inquiry.

These and other reasons make it hard to resist the draw to apply for a loan without the hassle of a credit check. Once the choice is made, getting approval for the loan is not too complicated with a little preparation in advance. 

How to Get Approved

The first step comes prior to filling out an application. Borrowers should check their own credit, which has no effect on the credit score. Doing so may reveal that a no credit check loan is not the only possible option. This information is valuable, since getting a quick loan approval comes with consequences.


Even so, far more than a few individuals decide a no credit check loan is best. Lenders do not request a credit report, but the account and payment history will be included in the file. Like any other credit check, there are ways to improve the chances of approval. Borrowers should:

Ask lenders if they will consider using “alternative data” like utility payments, employment history, and bank accounts to get loan approval. 

Gather tax returns for at least two years.

Provide at least three months of bank statements.

Be prepared to show other documentation like paystubs or other income.

Give the lender proof of all debts with evidence of payment history.

Consumers meeting these qualifications have a substantial chance at a loan approval. Institutions that offer loans without pulling a credit report include online lenders, payday loan companies, and credit unions. The importance of carefully reading a loan agreement cannot be stressed enough. The applicant must have a crystal-clear understanding of any fees, late penalties, and other fine points before signing. But prior to starting the application, it is essential to make sure the loan company is on the up-and-up.

Identifying Loan Scams

The world is rife with loans scams online, by phone, and through regular mail. They are specifically designed to trap unsuspecting consumers in infinite financial bondage or into forking over their cash. The scammers count on luring people in the middle of a cash crisis. Unfortunately, billions of dollars each year are stolen by way of loan scams.

One popular con is an offer of a completely guaranteed loan approval with no credit check needed. The clue to unmasking this con is the word “guaranteed”. No real creditor will guarantee money to someone without confirming their ability to repay, whether by checking their credit history or validating their employment income or savings.

Other hints that point to a loan scam:

  • The lender cannot be verified as a legitimate company.
  • Applicants are required to pay money up front to get a loan.
  • Unusual repayment terms, such as cash, wire transfer or payments to a third party.
  • Unsolicited offers of credit with unprofessional writing like misspellings or poor grammar.
  • Requests for personal information before making the application.

There are tons of bona fide lenders that approve loans without checking credit. But there are even more con artists that mimic genuine lenders to steal information and money. With caution and research, finding a real lender is not difficult. But dealing with the terms they offer can be immensely challenging.

Too Good to be True?

The fear of a loan denial because of bad credit is what may drive a cash-strapped borrower to these lenders. Although an approval with no credit check may be a blessing for some, it does come with strings attached in the form of sky-high interest and fees. Loans with looser qualifications such as these are called subprime. This means that the interest rate charged is (well) below the prime rate offered to customers with good credit. 

It is not unheard of for short term payday loans to come with a 350% or more interest rate! Rates this high result in debt traps known as rollovers, which means the borrower extends the loan each week by paying interest only. In the meantime, fees and interest continue to add up, which makes it impossible to pay off the loan.

Some lenders require collateral to secure payment of a loan without checking credit. This can lead to a potential loss of property, usually a vehicle. Lenders also place liens on savings account balances and real estate in exchange for an approval. The residual headaches from any loan gone bad create an even worse financial situation in the long run.

Loan Alternatives

While it may be true in some cases that a loan without a credit check is absolutely the only option, it is more likely that other choices are available. With today’s creative financing, people with no credit or bad credit can get loans without unimaginable rates and fees attached. Using the typical reasons for applying listed above, some suggestions to consider are:

  • Borrowers should not automatically assume their credit is too low to apply for anything other than a loan without a credit check. Even so-called “bad credit loans” offer somewhat lower interest rates. Traditional institutions will also give consumers an idea of what credit scores are acceptable for approval, if asked.
  • One far less expensive way to start building credit is to open a secured credit card (make a deposit and get approved for that amount) and make payments on time.
  • True, hard inquiries can lower credit scores, but only by a few points each. They remain on the file for two years maximum. By contrast, a no-win loan can lead to bankruptcy. Which can plummet the credit score by about 200 points. And stays on the report for up to 10 years.

Other possible choices for bad credit loans:

  • Collateral loans
  • Less costly cash advance on credit cards 
  • A shot at a willing cosigner
  • Credit score boost through a credit bureau using consistent utility payments
  • Borrowing from family or friends

It is in the best interest of a borrower to consider all possible scenarios when it comes to accepting proceeds from a loan. A quick yes to an application comes at a cost. At a minimum, the consumer should know that cost-and be sure of their ability to pay it.

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Sheila Kay

Sheila Kay is an author, ghostwriter and editor residing in the Atlanta, GA area. Among her favorite writing genres are creative nonfiction, self-improvement, and finances. Her first published book, PTSD and the Undefeated Me, is a memoir which has been a stepping stone to her involvement with mental health advocacy for military and civilian men and women. She is currently working on the first fiction novel to be published under her name. For more information or to purchase her books, visit Sheila’s Author Page on