How To Borrow Money Without A Credit Check?

David Allan

Written by David Allan on November 12, 2018

Updated November 12, 2018

no credit check borrowing

If you have a poor credit rating and are unable to resolve it quickly, it can feel like you have no options when it comes to borrowing money. It is possible to get some forms of finance without the lender having to run a full credit check on you, but it isn’t always easy.

Individuals with a decent credit score can often access a range of various borrowing options, but everyone with bad credit is at risk of not being approved or being charged very high interest rates. Borrowing money without a credit check is fairly uncommon, but not unheard of, and if you really need some funding, then there are a few things you can do to help yourself get approved.

Speak With A Credit Union

Most banks and financial providers use your credit history to predict your likeliness to repay in the future. If your credit score is low and you have had trouble paying debts in the past, then they will assume you will do the same again if they lend to you. In this situation, building a relationship with a credit union can help you to borrow money without a credit check.

They are not as convenient as borrowing from a large bank, but credit unions offer a personal service and really want to get to know their customers. At a credit union, you can often have the chance to sit down with someone and have a face to face conversation about your financial situation and your borrowing needs.

Most credit unions base their lending decisions on personal relationships rather than credit scores, so if you can establish a relationship, then you could be on your way to getting finance without the need for a credit check.

Open a savings account with a local credit union and use it regularly to begin building a relationship with them. Once they see you as a valuable and reliable customer, you can then speak with them about their lending options.

Some Payday Lenders

Many Payday loans come with interest rates and risks involved are far higher than they are worth, but they are a way of borrowing without a full credit check. Most payday loan lenders will run a ‘soft’ credit check on you, which is a necessary check to ensure you are not a fraudulent borrower or currently bankrupt.

This is different to a full credit check as they will not look into your entire credit history, so if you do have a poor credit rating, then you will still be approved with some bad credit payday lenders.

You should always be a bit cautious of any lender willing to lend to someone without doing a full credit check. It usually means the loan agreement has very high costs and strict terms and conditions that could land you in a vicious spiral of debt.

No Credit Check Loans

Some lenders will advertise no credit check loans, which are essentially just short-term personal loans that can be obtained very quickly and without the need for a full credit check. Usually, these are paid over a short period of time as opposed to several years as with other loans, and they generally come with very high interest rates and fees.

No credit check loans are very similar to some payday loans companies, and a lot of companies that advertise no credit check loans are actually just payday lenders using a different name for their product. These lenders don’t use your credit score to make a decision; they instead look at your current income to determine if you can reasonably afford to make the repayments.

Think carefully about whether you can truly afford to repay a short-term loan in the time frame given, this type of high interest, short-term finance makes it very easy to end up in much more debt. As soon as you miss a repayment, the interest charges will go up dramatically and can leave you in a position where you are unable to pay.

Secured Loans

It could be possible to find a logbook lender that is willing to offer you a secured loan without a credit check. A secured loan uses collateral to guarantee the loan amount, and if you don’t make the repayments, then the lender has the right to repossess your assets. As the lender has the protection of your assets, it reduces the risk to them and means there is less need for them to run a full credit check on you. This logbook loan calculator will give you an idea of the cost of these types of loans.

Secured loans can be dangerous, as any assets you use as collateral are at risk of being repossessed if payments are not kept up. This can be extremely problematic if you use a vehicle as security for the loan and need it to get to work to earn your income.

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