Those with damaged credit sometimes think they will be unable to find an affordable loan that answers their current need without being subject to a credit check, which it is feared, may lead to the denial of the loan.
In reality, however, there are many online lenders who offer alternatives to payday or personal installment loans with no credit check required. It will not be difficult to find an online lender offering loans besides loans with no credit check — a simple Google search will bring up plenty of options. The challenge will be to find and choose the best possible no-credit-check loan that fits your situation.
What to Look for in alternatives to No-Credit-Check Online Loans
Besides simply finding a lender who will not run a credit check or base loan-approval on your current credit score, other factors to look for in your no-credit-check loan include:
- Affordable, competitively priced interest rates. Some lenders of personal loans will lower your rates as you make on-time payments and will not penalize you for early re-payment.
- Direct lending with no intermediary, “third parties” to tack on extra fees.
- Free request, with only minimal, basic personal information required on the form. Very fast approval, or taking a few minutes at most, is the norm.
- Secure online connection with a reputable lender that posts its contact information and physical address somewhere on the website.
- Flexible loan terms that you can select, within pre-set parameters, including: amount of cash to be borrowed, dates of pre-scheduled payments, and preferred re-payment method (such as automatic withdrawal).
- Fast-cash deposited electronically into your account by the next business day or sooner.
Why Loans With No Credit Check Are Not Possible
For many bank loans and traditional loans, a good or at least average credit score is required. And there are many online lenders who, even if they will accept many customers with a “less than perfect” credit history, will still insist on running a quick credit check.
But online loans with no credit check requirement are not at all possible — and here’s why:
- Many personal loans and payday loans are based on your ability to repay and not on your credit score. Thus, so long as you have proof of adequate income and a current U.S. bank account, you can likely be approved for the loan.
- Since many lenders will accept customers with bad or no credit, and it is typically those with poor credit who wish to avoid a credit check, there would seem to be little reason to run a credit check to begin with.
- As one of the chief benefits of online loans is the speed at which they can be obtained, it would needlessly slow down the process if a credit check had to be run for each new customer.
Finding alternatives to loans with no credit check online is not difficult, as many lenders have good reason to offer them, but it is wise to investigate the other features of the loan and the reputability of the lender first before making a final decision.