personal loan with bad credit or no credit check

How to get Personal Loan with Bad Credit or No Credit Check

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Last Updated on 11/10/2020 by Deepak Singla

If you have no credit history at all or have a poor credit score, you may think that taking out a personal loan is impossible. Well, you are wrong. Personal loans are not out of your options. The good news is that there are several alternatives for you to obtain a loan that does not need a hard credit inquiry.

Although it’s not easy to get a personal loan without a hard credit check, there are many ways to get the job done. The very first step is to figure out if taking out a no credit check loan is your only option.

Keep in mind that these loans usually have certain downsides, such as stricter terms and higher interest rates. Also, no credit check loans aren’t generally recommended for borrowers who are qualified for conventional loans.

To give you a better idea about no credit check personal loans, read on!

Personal loans with no credit check

To make the process convenient and smooth, be prepared. By that, we mean, proving your creditworthiness to a creditor when applying for a loan without a hard credit pull. Have the records and documents you need to show that you’re able to repay the new debt and be financially stable.

These things will help skyrocket your opportunities and chances of getting your loan approved. If not, then you can get no credit check loans online instant approval with Friendly Lender. The following are some of the important documents you need to prove your creditworthiness to a lender:

  • School records
  • Bank statements
  • Credit card debt documentation
  • Borrowing history
  • Employment history
  • Tax returns for the last 2 years

Where to Get Personal Loan with no credit check?

Below are options or ways you can get a personal loan without a credit check:

Payday Loan Companies

One popular option to get a loan with no hard credit pull are payday loans. But these loans are usually considered as a last resort because of their excessively high annual percentage rates.

For reference, the average payday loan has an annual percentage rate of 400 percent. By comparison, a bank-issued loan taken out by a borrower with a stellar credit score may have an annual percentage rate of at least 10 percent.

Not only that, but payday loans also come with short repayment periods and high fees, as well. Just like payday loans, a title loan is yet another way to borrow money without requiring a credit check.

In this type of loan, the value of your car will be equal to your loan amount. Plus, you must be the owner of the car outright. Once you fail to pay off the loan,  the creditor can take ownership of your vehicle.

Although both title and payday loans might be a good funding solution for obtaining quick cash with no hard credit pull, the costly combination of high-interest and fees make them an option you must only think about when you are in an urgent financial need.

Credit Unions

You can get a no credit check loan from a credit union if you are a member. Credit unions are well-known for providing loans with better terms and might be keen to consider other information besides our credit history and score when determining your creditworthiness.

If you are a member of a credit union, the following are the pieces of information that matter most:

  • Residence
  • Employer
  • Membership to other organizations

Make sure to talk to your employer or local credit union to know if you’re qualified for credit union membership.

Online Lenders

Most online lenders have different options and opportunities for borrowers with hardly any credit history. Although you might still need one or two accounts in your report, online lenders scrutinize features of your profile beyond your credit score and report when gauging you for a loan.

Checking the Fine Print

When you have already picked out a loan, make sure to thoroughly read the fine print of the agreement. Look over any charges and fees, and see to it that you fully understand the sanctions of paying late.

Keep in mind that it is important to make timely payments for the health of your credit scores. Also, payment history is the most crucial determinant of your FICO score. If you miss one payment, it can hurt your credit score and bring it down.


Looking for a lender that’ll offer you no credit check loan is an excellent solution for getting your credit history away from the limelight. Ensure that the creditor reports your payment history and account to at least one credit bureaus. Also, don’t forget to pay all your bills in a timely manner.

You can even get a cosigner with stellar credit history to cosign for a loan if you have little to no credit history. In this option, the cosigner will be the one to apply for the loan, and if you default, the cosigner will assume the debt.