In April 2018, the FICO scores of U.S. consumers was at an average of 704. That’s a 4-point increase from 2017 and a staggering 17-point increase from 2009!
While this calls for a celebration, it doesn’t tell the entire story. For instance, it doesn’t show that 19.1% of these folks still have a FICO score of less than 600.
The thing is, a score lower than 579 is already considered “poor”. And a poor score is the reason behind lenders denying up to 76% of personal loan applications.
If you have a poor credit score, small installment loans with no credit check may be your best bet. Apply for these, and you have higher chances of seeing the word “Approved!” stamped on your application.
But while these loans have more relaxed rules, approval still isn’t 100% guaranteed. So, don’t take any chances — follow these tips to get a “Yes!” from the lender!
Be Realistic with the Loan Amount
Your current ability to pay back debts is the most important factor for lenders of no credit check loans. That’s why they don’t need to run hard checks to confirm your debt payment history.
That said, you should stick to a reasonable amount when applying for a loan with no credit check.
Let’s say you’re making $2,000 a month, but $1,900 of that goes towards expenses. That leaves you with only $100. If you apply for a loan that requires a $200 repayment, you can expect your application to get denied.
So, be sure to tally your expenses to see how much you can afford for the monthly repayment of a new loan.
Have Someone Credit-Worthy Co-Sign Your Loan
A co-signer is someone who applies for a bad credit loan with another person. When they “co-sign” that loan contract, they agree to pay off the loan if the other person doesn’t. In short, they guarantee (and will make) the loan repayment if the other can’t pay the loan back.
With a co-signer, lenders will feel more confident that they can get their money back if you can’t repay your loan. That then increases the likelihood of your loan getting approved.
But when choosing a co-signer for your loan, it’s best to go with someone with good credit standing! Granted, the lender may not run a credit check on either of you. But a co-signer with a great credit score makes your application more appealing to them.
Provide Proof of Extra Sources of Income
If you have any other source of income aside from your 9-5 job, include the details in you payday loan no credit check application. This can be an online freelance job you get paid through PayPal with, or a home baking business. Be sure to show lenders proof, like invoices or bank statements.
Again, lenders of no credit check personal loans need to see proof of your repayment ability. The more sources of income you show them, the higher the chances of your loan getting approved.
Apply for Small Installment Loans with No Credit Check Now
Small installment loans with no credit check, in general, have higher approval rates. Especially compared to bank or credit union loans that can even take weeks to process. If you need quick cash now and you have a bad credit score, a no credit check loan can be an excellent solution to your money issues.
Ready to start comparing these loans for bad credit? Then be sure to check our guide on how online no credit check loans work! Here are some other articles you might find helpful:
The easiest payday loans to get approved for to get your finances on track
Installment loans vs payday loans: What’s the difference?
Your guide to guaranteed payday loans direct lenders
7 surprising reasons installment loans might be right for you