Guide to Getting a No Credit Check Loan

Bad Credit Loans  No Credit Check Loans  

Misfortunes such as sudden job loss, poor health, and the death or illness of a spouse do happen, oftentimes quite suddenly. At times like these, monthly bills continue to come in the mail; food and other necessities won’t wait either.  When these problems arise, even someone with good credit for many years can find their finances in shambles. These types of scenarios present the need for a loan without a credit check.



  1. Why is a No Credit Check Loan Needed?
  2. Types of No Credit Check Loans
  3. To Borrow or Not
  4. Alternatives to Loans Without a Credit Check
  5. How to Repay a No Credit Check Loan




Why is a No Credit Check Loan Needed?

The first thing a lender does is to run a credit check on the applicant. This provides a record of the debts and payment history in addition to the credit score. What the report includes can make or break the deal when it comes to getting a loan. It is a snapshot of how the applicant handles finances.


The numbers on the credit report include:

  1. Credit score
  2. Number of accounts (personal loans, credit cards, etc.)
  3. Other loans (mortgages, auto loans, student loans)
  4. How many credit inquiries have been made
  5. Delinquency and late payment counts
  6. Number of bankruptcies


Although other items factor into whether a loan is granted, like income and assets, the credit check weighs in heavily. Ideally, a credit check will come back with a decent credit score (at least in the mid 600’s) and a number of accounts in good standing proportionate to income. Little or no inquiries is a sign the borrower is not applying for too much credit. Zero delinquencies, late payments or bankruptcies also boost the chances of approval.


But not everyone has a credit score that can get them a personal loan from banks, credit unions and other financial institutions. Despite the fact that a large number of fortunate people have good credit, many suffer mishaps which ruin their credit. Some have had bad credit since their teenage years and are proud of it. Still others are fresh out of school without getting a chance to build any credit at all.


Although they’re in different stages in their finances, the common denominator with all of these borrowers is that they can find themselves cash strapped at the worst of times. It is for that reason loans without credit checks were made available. They allow people with very low credit scores to get money based on other factors besides credit rating.


Types of Payday Loans

In several respects the terms offered with no credit check loans are different than those presented by banks. Not all kinds are available in every area, so borrowers should check first to see if the loan they are interested in is offered where they work or live.


Some common types of no credit check loans:

  1. Payday loans. They are also called cash advances or check loans. Their purpose is to bridge the borrower over to the next paycheck, so they are usually $1,000 or less.
  2. Title loans are secured with the borrower’s collateral that is paid in full such as vehicles, boats, or motorhomes.
  3. No credit check online lenders. Easy approval lending companies flood the Internet with offers of loan approvals within minutes.
  4. Cash advance from a credit card. Although not technically a loan, it is possible to get a credit card with no credit check and for a (hefty) fee, draw out cash money.


When an individual is in an urgent financial situation, a bit of research will turn up even more no credit check loan types. But no matter how dire the circumstances, it is important to know that these loans can come with terms and conditions that might make borrowers decide to find other means to get funds they need.


To Borrow or Not

As the saying goes, “All money is not good money.” With this in mind, borrowers should approach no credit check loans cautiously and fully informed. There can be very serious results from a loan of this type going bad (or unpaid).


Some pitfalls to look out for:

  1. Unpaid title loans can result in the loss of the vehicle or other collateral.
  2. Any bad credit loan will come with high interest rates. It is important to be prepared for the high interest rate and be sure it can be repaid.
  3. Borrowers must avoid carrying over interest (making interest only payments until the next payday); this trap leads to an endless cycle of debt which doubles with each deferment.
  4. Desperation can drive a borrower into taking the first loan they are offered, which is never a good idea. Instead, comparing as many loans as possible for lower rates and the best possible terms is the better course.
  5. Cash advances on credit cards are very expensive, even for people with good credit.


Some borrowers have been scammed by online lenders who were not licensed in their jurisdiction. It is essential that a potential lender is checked out to ensure that they follow regulations in the location in which they operate. A reputable lender will provide verifiable contact information on the website.


Alternatives to Loans Without a Credit Check

Getting a loan without a credit check can cost loads in the form of high interest rates and fees. Therefore, they should be used with caution and only if truly necessary. Even in what may seem to be a crucial financial situation, there may be alternatives to committing to this type of loan.


Other possible solutions include:

  1. Borrowers should find out whether a no credit loan is their only option. Surprisingly, traditional lenders will give people with low credit scores a chance to rebuild their credit by approving a small loan.
  2. Selling unwanted assets can be a way to get money without signing on for sky high debt. Other ways to raise funds are working overtime or taking on a second job part-time.
  3. Asking a close friend or relative to co-sign for a loan. Note: Most people with good credit do not want to risk the score they’ve worked hard to attain, so a refusal should not be taken personally.
  4. Even if they won’t co-sign, family members and friends might consider lending money.
  5. If possible, waiting until the credit score is just a few points higher can result in getting approved for more traditional loans.


Some of these ideas may work but when a crisis occurs in which money is needed immediately, a no credit check loan could be the only way to resolve the problem.  If so, formulating a plan to repay the loan is cost effective and a way to make the process as painless as possible.


How to Repay a No Credit Check Loan

The rules of a loan without a credit check are different from regular loans. But borrowers can use some financial hacks to shave off some of their costs. For example, pay day and other loans are extremely pricey if they are paid in small amounts from each paycheck. Paying off the whole loan with the first paycheck nips the money wasted on fees and interest in the bud.


The same principle applies to no credit check credit cards; repaying the balance before the introductory rate ends saves hard earned money. How to repay a loan of any type is by paying it back as fast as possible. A financial emergency is stressful enough without the hassle of late payments, bill collectors and never-ending top dollar interest payments. But if utilized correctly, a loan without a credit check is a saving grace during an unpleasant season as it is intended.



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Smarter Loans Staff

The Smarter Loans Staff is made up of writers, researchers, journalists, business leaders and industry experts who carefully research, analyze and produce Canada's highest quality content when it comes to money matters, on behalf of Smarter Loans. While we cannot possibly name every person involved in the process, we collectively credit them as Smarter Loans Writing Staff. Our work has been featured in the Toronto Star, National Post and many other publications. Today, Smarter Loans is recognized in Canada as the go-to destination for financial education, and was named the "GPS of Fintech Lending" by the Toronto Star in 2019.