While most Americans have checked their credit score at some point or another, 50% of people don’t realize how credit can affect their phone bill and utilities. It’s starting to feel like nearly every element of your daily life can be subject to a credit check. If you’re in need of some extra cash, you might be surprised to find out that there are options available besides no credit check loans for people with spotty credit history.
Even if you’re careful with your money, a sudden incident or emergency could require a loan. Nearly half of Americans would struggle in the case of a $400 emergency. When disaster strikes, thankfully there are options for people who are trying to avoid a credit check.
If you’re looking for no credit check loans, there are several ways to find a loan to suit your situation. Check out these 6 tips to ensure you find a great match.
1. Read The Fine Print
Once you find a loan option that you’re excited about, you might rush to get through the application. Make sure that you’re always taking the time to read the fine print. Your repayment options, interest rates, and qualifying factors could be hiding in between the lines.
If you want to repay your loan as soon as possible, you might be bound by the payment schedule your loan provider requires. You won’t benefit from paying off your loans or be able to avoid steep fees. Rather than up-end your budget, you can stay on track and pay off your debt according to their schedule.
You also might be under the impression that you’re applying for no credit check loans but still be subject to a credit check. If you have any questions, you should call the customer service line to double check.
2. Try Out Payday loans
A payday loan can come in handy for those minor needs like a car repair or emergency dental care. They’re intended to help make ends meet until you get your next paycheck. They are also one of the best options for those looking for an alternative to no credit check loans.
Interest rates are typically higher than for other loans because of the low standards of credit that you need. They can help you maintain a good relationship with your landlord if you’re a little short and if the fees make more sense than your landlord’s late fees.
If you repay the entire loan on your next paycheck, you’ll avoid any issues. While they can be structured to be paid back over a longer period of time, the interest could outstrip the loan itself.
Like any loan, you should aim to take out the smallest amount possible so that you don’t get overwhelmed with paying it back. A payday loan is aimed at getting you back on track, not to put you further into debt.
3. Get A Title Loan
When it comes to loans like no credit check loans, title loans are a good way to prove you have collateral without having to hit your history with a hard inquiry. If you’re the owner of a motor vehicle, an RV, or even a boat, you can get a loan based on the value of your title.
These are offered by specialized lenders, sometimes at pawn shops, or even currency exchanges. Some local banks will get into this business as well. It’s even better if this bank happens to be the bank you use for your everyday banking needs.
You usually need to give the title to the lender in exchange for the loan. Once the loan is repaid, you get the title back, so long as you’ve fulfilled the requirements of your lending agreement.
Be sure you pay attention to the schedule you agree to. If you’re even a day late on your payment, you might end up forfeiting a vehicle that could be worth much more than your loan.
3. Certain Credit Cards Might Work
There are a few credit cards that allow you to be pre-approved without doing a hard inquiry. If you’re a long-time customer of a certain department store, have done business with a certain bank, or are well known by a financial institution, you could qualify.
If you qualify for a credit card with a zero-percent introductory interest rate, you could use this card as a way to get a loan that you need. If you pay back the entire balance as soon as possible, you won’t be dealing with any interest and could actually help to build your credit.
Credit cards are somewhat dangerous to people with bad credit. If you don’t have a strong history of budgeting out your finances, you could easily end up in a situation where you own thousands to a credit card company. This will put you in a worse position than you started from and limit your future lending options greatly.
5. An Online Loan
There are online options for no credit check loans alternatives. You might have to do some digging online, but you might be surprised by how much you could take out, even with poor credit.
Even reliable, well-established lenders offer these options and could give you a much-needed cash infusion in minutes. Be sure that you take the time to research your options before you commit. You don’t need your next loan to put you in the hot water a previous loan put you in.
No Credit Check Loans Options Can Be A Miracle
Depending on your financial situation, options other than no credit check loans could save the day. In the case of a major emergency or a situation that could have drastic ramifications, you can avoid a headache and build a new financial relationship. Over time, good repayment habits will improve your credit history and make you less fearful of a potential credit check.
If you are trying to improve your credit, check out our guide to debt consolidation for people with bad credit.