Best Personal Loans With No Credit Check Of 2023 – Forbes Advisor

Best Personal Loans With No Credit Check

Best for Quick Turnaround

Possible Finance

Why We Picked It

Possible Finance is an online lender that works with borrowers with bad or no credit. The lender allows borrowers to repay loans over two months, as opposed to payday lenders that often require repayment on the next payday. Although Possible’s loans come with high annual percentage rates (APRs), they’re lower than what are often offered on payday or title loans.

Pros & Cons

• Available to borrowers with bad or no credit
• Two-month loan term
• Payments reported to two of the three major credit bureaus

• High interest rates
• Not available in all states
• May charge an origination fee

Eligibility: Possible Finance offers loans to borrowers in Alabama, California, Delaware, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas, Utah or Washington. With no credit requirement, Possible makes its loans available to borrowers with bad or no credit history.

Loan uses: Possible Finance does not disclose its permitted loan uses. However, you can typically use personal loans for just about any legal personal expense. Some lenders don’t permit using funds for business purposes or secondary education.

Turnaround time: Funds can be disbursed within minutes, according to the lender.

Best for Large Loan Amounts

OppLoans

Why We Picked It

OppLoans offers large loan amounts of up to $4,000 to borrowers with no or damaged credit. Although these loans have high APRs, they are often less than those that can come with payday or title loans. OppLoans also offers loan terms of up to a year and a half and doesn’t charge origination or late fees.

Pros & Cons

• No minimum credit score
• Large loan amounts for no-credit-check loans
• Fast funding

• High APRs
• Must be paid through direct deposit to qualify (unless you’re a resident of New Mexico)
• Not available in every state

Eligibility: OppLoans is available in all states except Colorado, Connecticut, Illinois, Iowa, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania and West Virginia. OppLoans doesn’t set a minimum credit requirement and rather evaluates applications based on other factors from alternate credit bureaus and your bank data.

Loan uses: Loans from OppLoans can be used for a wide range of expenses, including medical debt, home expenses and debt consolidation.

Turnaround time: If verification and approval happen within the same day, you could have your loan funded the same day that you apply.

Best Loan Apps With No Credit Check

Best Overall Loan App With No Credit Check

Earnin

Why We Picked It

Earnin is an instant cash advance app that lets users get paid as soon as they leave work by connecting the app to a bank account and tracking work hours. After working enough hours, users can request a cash advance of $100 to $750 per pay period using the platform’s Cash Out tool. App users can opt into Lightning Speed for $1.99 to $3.99 and receive cash instantly or within minutes.

There are no fees associated with Earnin, but there is a tip feature with options ranging from $0 to $14 for most services. The platform also sends users alerts if their bank account falls below a set balance and can send automatic Cash Outs on an as-needed basis.

Earnin is only available in the U.S. and U.S. territories.

Pros & Cons

• No mandatory fees
• No credit check required
• Same-day funding available

• Low borrowing limits
• Seemingly low tips can translate into high APRs
• Requires sharing personal banking information

Details

Repayment: Borrowed funds are withdrawn from the user’s bank account on payday.

APR example: A $100 cash advance borrower five days before payday, with a $1 tip and a $3.99 Lightning Speed fee costs $4.99 and results in an APR just over 364%.

Turnaround time: One to three business days or within minutes for users with Lightning Speed.

Best for Multiple Borrowing Options

MoneyLion

Why We Picked It

In addition to Instacash cash advances up to $500, MoneyLion offers credit-builder loans, mobile banking accounts and investment accounts. Members get access to their credit score, tips on how to improve that credit score and other helpful tools. As with other top loan apps, MoneyLion doesn’t charge any fees and tipping is optional.

Pros & Cons

• Offers cash advances up to $500
• No monthly fee and tipping is optional
• No credit check required

• Funding can take up to five business days
• Instant delivery requires a Turbo Fee
• Requires bank account access

Details

Repayment: Borrowed funds are withdrawn from the user’s bank account on payday or at time of next deposit.

APR example: If MoneyLion instantly deposits a $50 advance into an external account for $4.99, you pay an additional $1 tip and repay the loan in five days, it costs $5.99 and the APR translates to about 875%.

Turnaround time: Instant funding available with Turbo Fees or 24 to 48 hours for MoneyLion checking account users; two to five business days for nonmembers.

Summary: Best Personal Loans and Loan Apps With No Credit Check

Best Personal Loans With No Credit Check

Best Loan Apps With No Credit Check

Tips for Comparing No-Credit-Check Loans

No-credit-check loans may be marketed to higher-risk borrowers and can come with dangerously high interest rates, making it crucial to review fees and understand costs before borrowing. Below are tips for comparing loans.

• Understand the fees. Some finance apps offer paycheck advances and BNPL with no upfront fees, but they can become costly if you miss payments. Online and storefront payday loans, title loans and installment loans for bad credit will likely charge interest and fees, so be sure to compare costs across multiple lenders before borrowing. 
• Check interest rates. Lenders may express loan costs as an annual percentage rate, or APR, which is the annualized cost of borrowing, including both interest and fees. Comparing APRs with a loan calculator can help you estimate monthly payments for different loan options.
• Review repayment terms. Repayment terms for no-credit-check loans are generally short. Comparing multiple lenders is a way to find the best repayment schedule for your financial needs.
• Understand payment options. Payments for paycheck advances, payday loans or installment loans may be automatically withdrawn from your bank account. You may also be required to write a check that’s cashed on the loan due date. To avoid bank account overdrafts, make sure there’s enough money in your account each payment cycle.
• Search for lender credentials and reviews. No-credit-check loans, touted as quick financial solutions, can be offered by predatory lenders. These lenders can trap borrowers into a debt cycle. To avoid a scam, be sure to check a lender’s legitimacy by reading lender reviews and checking for consumer complaints against the company. 

What Is a No-Credit-Check Loan?

A no-credit-check loan is a personal loan you can apply for with no hard credit inquiry. Without that inquiry, you avoid the credit score drop that typically comes after a hard inquiry and if you have poor credit, no-credit-check loans can be easier to qualify for.

Personal loans with no credit check are typically offered in amounts from $100 to $4,000, and are due within a short period, such as two weeks or 12 months. This makes them an option to cover small, surprise bills or unplanned expenses versus major purchases. Different types of no-credit-check personal loans include:

• Cash advances. A cash advance allows you to borrow money against your next paycheck. There are a handful of loan apps that will lend you money without a credit check, but they can come with high fees. 
• Installment loans. Some credit unions offer no-credit-check installment loans with loan terms of two to 18 months and rates that may be more affordable than payday loans. Certain online lenders may also offer soft-credit-check installment loans with longer loan terms. 
• Buy now, pay later (BNPL). Buy now, pay later services allow you to make a purchase and repay it over time. Typically, the loan is paid off in four interest-free installments. Some BNPL lenders don’t require a credit check, while others may perform a soft inquiry that doesn’t affect your score.
• Payday and title loans. Title loans are secured by your car title and payday loans are similar to paycheck advances. Both title and payday loans are often expensive but easy to obtain when in a financial bind. Certain states set caps on payday and title loan rates; however, rates can still be 300% to 400% APR in some areas.

Where Can I Get a Loan With No Credit Check?

Many different types of companies offer no-credit-check loan products. MoneyLion and EarnIn are two apps that specialize in payday advances without credit inquiries. Splitit is an example of a BNPL service that doesn’t have credit checks. 

Both physical storefronts and online lenders may offer payday or bad credit installment loans with a soft credit inquiry or no credit inquiry. Yet, these are the types of loans to be wary of since they’re more likely to have sky-high fees and interest.

On average, borrowers pay $10 to $30 for every $100 borrowed in a payday loan, and paying $15 on a $100 loan with a two week term is equal to a 391% APR. 

OppLoans is an example of a lender that offers longer-term bad credit installment loans with APRs of 160%, depending on your state. A $1,000 loan with a 12-month term and 160% APR would result in a monthly payment of $171.53 with $1,058 in total interest paid. In this scenario, finance charges would cost more than what you initially borrowed.

It’s often best to avoid expensive no-credit-check or bad credit loans since fees and payments can be difficult to pay when in financial hardship. Although they can be appealing, there are alternatives that are worth considering.

How To Get a Quick Loan With No Credit Check

The application process for no-credit-check loans is usually quick, with same-day funding available. Follow these steps to get a quick no-credit-check loan:

1. Get proof of income. Lenders may look at factors like your income, employment history, banking history, bank balance and spending habits to approve you for a no-credit-check loan and decide your loan amount. Lenders could verify this information by reviewing your pay stubs, tax documents or bank activity. 
2. Sign up for direct deposit. Certain lenders require that you have a bank account with direct deposit set up to qualify for loans. 
3. Fill out the loan application. Application processes for no-credit-check loans can vary by lender, but the process often happens online or using an app.
4. Get funding. Once approved, you could get your loan deposited into your bank account within the same day or a few business days. 
5. Make payments. The lender will tell you when payments are due, and these payments may be drawn automatically from your bank account.

Should You Take Out a No-Credit-Check Loan?

Whether you should take out a no-credit-check loan depends on your financial situation. 

When used sparingly, small loans without fees, such as BNPL or paycheck advances, might be an affordable way to cover an unexpected expense. Still, overusing them can lead to a cycle of overspending and debt that limits your ability to save or handle other obligations.

These loans aren’t without their risks, but they can be a good option if you don’t have any other options. Before taking out a no-credit-check loan, have a plan to repay the money you’ve borrowed before the loan term ends. 

Also, note that some lenders that don’t require a credit check at application but may still report late payments to credit bureaus for unpaid debt, which could damage your credit history.

Alternatives for No-Credit-Check Loans

No-credit-check loans are just one way to manage emergency cash gaps. Alternatives to payday loans include: 

• Credit cards. For borrowers who can qualify, credit cards may offer much lower interest rates than no-credit-check loans. For example, the average interest rate for credit cards in August 2023 was 22.77%. That’s compared to the 100% to 400% APR you might pay on other small loans. Only borrow what you need with a credit card, and before doing so, have a plan to repay your debts.
• Payday alternative loans. Credit unions may offer payday alternative loans of up to $2,000 with low interest rates for credit union members. These loans are designed to be a lower-risk way to borrow for emergencies or unexpected bills. 
• Savings-secured loans. Some banks and credit unions offer loans backed by savings that you have in a certificate of deposit or savings account. Pledging your own savings as collateral reduces risk for the lender, which can help you qualify for better loan terms. 
• Family or friend loans. Borrowing from someone you know could save you money on interest and fees compared to high-interest alternatives. If you do find someone who can lend you money, write up a loan agreement to ensure you both agree on how and when the loan will be repaid. 
• Co-signed loans: If you have bad credit, having someone with good credit to co-sign on a personal loan can help you get approved for better loans with lower fees and interest rates. Keep in mind, if you fail to repay the loan, your co-signer will be responsible for repaying the loan.

Methodology

We reviewed lenders and apps that require no credit check based on the categories of loan details, loan costs, perks, customer experience and funding speed. Below you’ll find the methodology used for each loan type.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.

Personal Loans With No Credit Check

We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have no minimum credit score requirement and ranked them based on the weighting assigned to each category:

• Eligibility and accessibility. 30%
• Loan cost. 25%
• Loan details. 20%
• Customer experience. 15%
• Application process. 10%

Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.

Loan Apps With No Credit Check

We reviewed nine popular lenders based on eight data points in the categories of loan details, loan costs, perks, customer experience and funding speed. We chose the best lenders based on lenders that offered loans over $500 and rank them based on the weighting assigned to each category:

• Loan cost. 40%
• Loan details. 25%
• Funding speed. 20%
• Customer experience. 10%
• Perks. 5%

Within each major category, we also considered several characteristics, including maximum loan amounts, repayment terms, and applicable fees. We also evaluated each provider’s customer support, borrower perks and reviews.

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