Are you having issue securing a personal loan for immediate and urgent needs due to your credit bad credit history?. Are you facing a hard time getting loan due to the credit check policy? Then, this article is for you. There are some financing options that gives room for no credit check.
Getting a loan can be tough especially if you have no credit, and you may be limited to higher-cost options when borrowing money. Taking steps to establish credit, such as using a secured credit card or taking out a credit-builder loan, could help you build credit before you apply for a loan. Plus, check out our picks for companies that may lend you money with limited or no credit history.
Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. If you have a poor credit score or no credit history at all, you might think getting a personal loan is out of the question. The good news is there are options for you to get a loan that doesn’t require a credit check. Getting a personal loan without a credit check may not be easy, but here are a few ways to get it done.
What is a credit check?
As the name implies, credit check is the situation whereby financial institution take a look at your previous credit report to see what your financial behavior looks like. It gives them the analysis of whether or not you are eligible for the loan. Companies that take a look at your credit report either have your consent or there is a legitimate reason for it, such as applying for loan with them. Some of them may include;
1. Banks and building societies
3. Letting agencies and landlords
5. Utilities providers (power, water and gas suppliers), etc.
How to Secure a Personal Loan without Credit Check
To secure a personal loan without credit check, you have many options. For an online lender like MiFinance, Credit Unions, Payday Loan Companies,No-credit-check loans etc.Though you will be expected to submit a copy of your credit report from the credit bureau. This would be used to check for your last three months banking history to see if you are eligible or not.
The implication of checking your banking history is to see if you are a regular earner s this would make it easier for you to secure the loan on time.
List lender that offers a Personal Loan with No Credit Check
1. Payday Loan Companies: You can get payday loan from many leaders because they will ask you to provide bank account and regular income as Requirements.Though it have high annual percentage rates (APRs) which make them a last resort.
2. Credit Unions: As member of a credit union, you may be able to get a loan from them without a credit check. Credit unions are known for offering loans with good terms and may be willing to consider information other than just your credit score when gauging your creditworthiness.
3. Other that lenders that offer no-credit loans are: Brigit,Stilt,Oportun and Earnin
4. Get a co-signer: you may consider asking someone to co-sign for you, If you don’t qualify for a loan by yourself
5. Apply for a credit-builder loan: Some financial institutions help people build credit with credit-builder loans once you borrowed and payback like monthly payments), and the lender reports your payments to the three major credit bureaus to help you establish a credit history
6. Apply for a Secured Credit Card: Credit cards are one of the best ways to establish and build your credit, and a secured card is specifically geared toward people with little or no credit. With a secured card, you open an account with a cash deposit, and that deposit amount is your credit limit. This creates less risk for the issuer but allows you to use a credit card when necessary—and build your credit at the same time
7. Apply for a secured loan: You can qualifying for a loan — or getting a better rate — if you put up collateral for a secured loan. Some lenders offer secured personal loans if you put up collateral such as a vehicle or a savings account.
Why should you consider this option?
8. Online Lenders: Online lenders such as Prosper, Upstart and LendingClub—all Experian loan partners—have options for people with scant credit history. While you may still need at least one or two accounts in your credit report, these lenders look at features of your financial profile beyond just your credit reports and scores when considering you for a loan.
Summarily, securing loan without a credit check has make it easy for anyone who have bad credit record or cannot lay their hand on theirs at that moment. It saves time and gives more chance of being considered for the loan applied for. All you need is to have a source through which income comes in regularly.