PERSONAL FINANCE BLOG

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No Credit Check Personal Loans
23 Jun 2018

Your Guide to No Credit Check Personal Loans

Your car breaks down. Your home needs repairs. A family member gets sick and you need to cover medical costs.

All of those scenarios are things people like you go through every day. Unfortunately, if those people don’t have access to cash immediately, their bad situation gets a whole lot worse.

To help manage hard times, hundreds of millions of Americans turn to credit cards and personal loans for help.

But what if your less than stellar credit has disqualified you from getting credit cards and traditional loans? How will you find the money you need?

Fortunately, there are ways in which people can attain cash loans without excellent credit. To help you understand what no credit check personal loans options are available to you, our team at Bonsai Finance has put together this article.

Use it to consider the possibilities and figure out which path to borrowing money is best for you.

Try Your Credit Before Trying Alternatives

Credit is an important commodity in the lending market. It gives lenders an easy way to assess the risk of giving people asking to borrow loans.

Unfortunately, a single stroke of adversity can render one’s credit below what is considered “good” by lenders. This can make borrowers ineligible for loan products.

Even if you’re relatively sure your credit disqualifies you from favorable loan products, before seeking no credit check personal loans, it’s suggested that borrowers should be certain they know their credit score and double check to see if they’re eligible for traditional credit check loans.

Many times, borrowers are surprised by what they qualify for, even with below average credit.

If you’ve already tried getting the loan products you need and have gotten rejected due to credit reasons, keep reading.

Short Term Loans

Short term loans which are sometimes referred to as “payday loans” is a means of getting money that many people with credit issues turn to. When getting loans of this nature, most lenders will consider other factors outside of your credit to determine eligibility.

Primarily, you’ll get asked to prove that you have a job, a checking account and are over 18 years old. If all of that checks out, you’ll likely qualify for a short-term loan.

Short term loans are easy to acquire. You can usually get them from local shops/lenders or even more conveniently, you can get these loans from institutions online.

Secured Loans

Secured loans or “title loans” are a popular no credit check personal loans option that allows borrowers to offer collateral instead of their credit. The collateral offered by borrowers gets assessed by lenders to determine the item’s value. Based on that assessed value, lenders will offer borrowers a personal loan amount.

Assets accepted by lending institutions for secured loans vary from lender to lender. Most commonly, car titles are offered. But other property and even stocks in some cases can be used as well.

It’s important to understand that with secured loans, if you default on your payments, lenders will take possession of the property you offered as collateral. Understand that risk and make sure that the loss of the property you’re offering isn’t going to have a deeply negative impact on your life.

Also, be aware that property offered for secured loans gets valued below its market value. This protects lenders from fluctuating market rates.

Peer-To-Peer Lending

A recent boom in lending has come in the way of peer-to-peer lending. The way it works is that borrowers sign up for services online or through mobile applications.

These services allow borrowers to request loan amounts and those loans are then funded via a lending network of individuals. The fact that your loan gets funded via multiple individuals reduces the risk for any one lender. This increases the likelihood of getting your loan funded.

Below average credit is typically not a reason to get rejected on these platforms. You may have to undergo a soft credit check however to determine your interest rate. The lower your credit score, the higher your rate will be.

Cash Advances via Credit Cards

If you’re in need of cash and do have a credit card, most offer you the ability to withdraw cash from your card. This is known as a cash advance.

That means that if you have a $3000 credit limit, you could feasibly go to a bank and have that money in hand immediately. When pursuing this means of borrowing, it’s very important that you understand your lender’s cash advance fees.

These can be steep and fall outside the confines of your credit card’s typical interest rate.

Your Support Network

Always worth a mention when looking to borrow money is looking towards your support network. Not everyone has a group of people willing to help them through difficult financial times which is why all of the other options exist that we’ve listed above.

Still, if you think there’s a chance a friend or family member might be able to assist you through a tight financial spot when you’re having difficulty qualifying for products via professional lenders, it’s worth asking for help.

At Bonsai Finance, we’re large proponents of responsible borrowing and lending. We want you to always pick the best options that are available to you.

So, if you’re fortunate enough to be able to obtain interest-free help from a loved one, do it.

Wrapping Up No Credit Check Personal Loans

If you need a no credit check personal loan, your options are limited. Still, there are loan products available that may be able to accommodate.

Most will either require collateral or consistent income.

If you have one or both of those things, you have a good chance of being able to qualify for at least one of the products we’ve discussed above.

If you’re looking to find a lender online now to help you get the money you need quickly and have below-average credit, Bonsai Finance can help. At Bonsai Finance we work to help you find preferred lenders from all over the country who want to lend you the money you need.

To get your loan funded as quickly as today, fill out our request form online and let us show you what we can do for you!