If you've got no credit, or your credit is poor, you might think getting a loan is impossible. It's not! Here's how get a loan with no credit.

How to Get a Loan With No Credit

About 54% of Americans live paycheck to paycheck. What’s even more alarming is that 40% of people earning more than $100,000 a year live paycheck to paycheck.

If you’re one of them, an emergency situation can throw your finances off. You’ll need an influx of cash, but where will you go to get it?

People that don’t have credit think they face an impossible situation. It really isn’t because you can get a loan with no credit.

Are you ready to find out what your options are to get cash quickly without needing a credit report? Keep reading to discover how to get a no credit loan.

1. Payday Loans

Payday loans are short-term loans for a small dollar amount. Most loans are between $200 and $500, though some lenders offer payday loans up to $1000.

They’re like bridge loans that help you with cash flow issues in between paychecks. The catch is that you have to repay the loan on your next payday.

If you want to get a payday loan, you’ll need to apply online or visit a payday loan retail location. Bring your most recent paystubs, bank account information, and government-issued ID.

2. Use Your Car

What if you need a fast loan for more than $1000? You might be able to leverage your car and get a car title loan.

This is a short-term loan that’s based on the value of your car. You use the car’s title as collateral to secure the loan.

The amount of the loan is based on the value of the car. Easy Title Loans base their loans on the age of the car, mileage, make, and model of the car.

Leased cars don’t qualify because you technically don’t own the car. Some lenders allow you to use your car if there’s an outstanding loan.

The determining factor is how much equity you have in the car. If you have a few loan payments left, you have a lot of equity in the car and you should be able to use it.

However, if you’re only a year into a five-year loan, lenders aren’t likely to accept it.

3. Find No Credit Loan Lenders Online

There are lenders that offer personal loans without a credit check. Many are legitimate, but there are some that are scams.

You really need to know what you’re getting yourself into with no credit check loans. The appeal of fast money in a desperate situation could cause you to overlook obvious red flags.

Lenders that put pressure on you to commit to the loan, even if you’re not ready to sign on the dotted line, are scams.

Another sign to look for is a lender that asks for payment in exchange for the loan. Make sure they’re registered to operate and have a physical address.  

A local credit union, Avant, OneMain Financial, and Lending Point are some examples of reputable lenders.

4. Compare Interest Rates

Prequalify for a loan by giving lenders basic information about your income and earnings. They won’t check your credit score.

You’ll get a general idea of how much you can get and the interest rate for the loan. Lenders will charge more interest for no credit loans because they carry more risk.

Lenders use an applicant’s credit history as a gauge to see if they are reliable or not. Since they don’t rely on your credit report, they have to find a way to maintain a profitable business while offering a range of loan products.

High interest rates let them do that. Calculate the total cost of the loan, look at the monthly payments and number of payments.

5. Make Sure You Can Repay the Loan

Your ability to repay a loan with no credit is critical. There are severe consequences for missing payments for every type of loan.

Miss payments on a standard personal loan from a bank, you’ll see the missed payments on your credit report. That affects your ability to get another loan or an apartment for years.

Late payments on a payday loan could turn into a downward cycle of debt. Lenders will roll your loan into a new loan. The new loan comes with more fees, so you’re going to pay much more than the original amount borrowed.

The alternative is to have your loan given to a collections agency for debt collection.

Car title loans are agreements where you use your car as collateral. Lenders have the right to take possession of your car and sell it to repay the loan.

Be absolutely certain you can repay the loan and have a backup plan if the money you expect to come in is late.

6. Fill Out the Application

Once you settle on a lender, fill out the application. Most lenders let you fill out the application online.

If they ask for more documentation, you can scan and upload it online.

Lenders vary in approval times. Some turn around applications in just a few minutes. Others take a few days.

Expect the funds to reach your bank account 12-72 hours after approval. It depends on the lender and your bank.

You Can Get a Loan With No Credit

There are plenty of options to get a loan with no credit. Payday loans, car title loans, and personal loans are options.

Make sure that you do your homework before applying for a loan. Know how to spot lending scams and look carefully at the terms of the loan. Be absolutely certain that you can repay the loan before you accept the loan.

Check out the Finance section of this site for more personal finance tips.

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