It is a fact that lenders who issue no-credit-check loans do not consider looking into your traditional credit history. So, if you are someone who has a low credit score or zero credit then having a loan approved from a traditional financial institution is next to impossible.

This is where a no-credit-check lender can be of help. However, one must note that such a lender typically charges high-interest rates, fees, and strict loan terms. Now let’s delve into the various types of loan options that come with a loan with a no credit check.

Types of Payday Loans with No-Credit-Check

Credit Union

If you are a person who belongs to a credit union then you could receive a secured or unsecured loan. While some credit unions provide loans to members who are in good standing, some credit unions look beyond a credit score and consider other financial information when reviewing a member’s loan application. It must be noted that the determinants for the loan may vary based on a specific credit union.

Payday Loans

These loans are short-term and unsecured. They do not require the borrower to provide any security and even come in the form of a payday loan no credit check. So, people with no credit or a bad credit score can avail of such loans and receive the loan amount within 24 hours of filling out the application. However, it must be noted that such loans are often a high-cost option for the borrower as he/she can have annual percentage rates of 400% and above. Furthermore, payday loans require borrowers to repay the loan amount within a few weeks, by the next payday.

Note:

APR is the total cost of the loan, inclusive of interest rate, fees, and the time it takes to pay back the loan. Moreover, people with bad credit scores can expect to pay a higher APR.

Car Title Loans

As the name suggests, such types of loans are secured in the sense that they require borrowers to use their automobiles as collateral. So, if the borrower fails to repay the loan amount, he will have to forfeit his vehicle to the lender. As a result, the loan you receive will be equal to the value of the car.

Note:

Such loans charge substantially high fees of up to 25% of the loan amount. Moreover, the borrower is usually expected to clear the debt within 30 days.

Online Bad Credit Loans

Some online lenders offer personal installment loans to people without credit or with poor credit. Installment loans are designed to allow borrowers to repay the loan in monthly payments also known as installments.

Some lenders issue bad credit loans after running a credit check, others will use the financial information provided by you to determine to finance. Hence, it is advised to shop around for different lenders so that you can compare various offers and choose the one that suits you best.

So, whether it is a car title loan, or a payday loan no credit check, choose the type of loan that caters specifically to your financial needs.