Loans and credit are generally available to people who have maintained a decent credit history. If you don’t have a good credit history, you'll find it hard to get a loan and even if you get one, you'll end up paying hefty fees and interest.
Life isn’t easy if you have bad credit score.
Financial institutions check your credit score before they decide to lend you money. The lending decisions are mostly based on credit score. However, there are a few ways to get even if you have bad credit.
If you need a personal loan with no credit check, you have the following 3 options to choose from.
1. Payday loans
is the best way to get a small amount of money instantly without credit check. Payday loans come with high-interest rate and fees, and are payable on your next paycheck. Most lenders won’t check your credit score so if you’re struggling to get a small personal loan, a payday loan is your best bet.
There are, however, certain drawbacks to a payday loan. First, you can only borrow a small amount under $1000. A payday loan makes sense when you need cash urgently. It is, by no means, a personal loan that will give you a lot of money. Second, a payday loan comes with hefty fees. If you can afford one, go for it.
2. Title loans
A lets you use your title of an asset as collateral to get a secured loan. For instance, if you own a vehicle, bike, boat, etc. you can use your title to get a personal loan. A lender won't necessarily check your credit score for a title loan because it is a collateral loan.
You can contact your local bank or pawnshops to get a title loan. Once you repay the loan, you'll get your title back. The amount of loan, in this case, varies and mostly depend on your title. If you need a reasonably high amount of personal loan, a title loan is your best bet.
It doesn’t come with hefty fees but your title is at risk and if you don’t repay the loan in within the time duration, you'll lose your asset. Pay close attention to the contract with the lender and make sure you don’t end up losing your asset.
Most people need hefty personal loansso a payday or a title loan doesn’t make much of a sense. If this is your case, you should consider a cosigned loan. You use someone else’s credit score to get a personal loan. Someone who trusts you and has good credit history can co-sign a loan for you.
Look around and find someone who trusts you and is for you. It is recommended to proceed with a co-signer only if you’re sure that you can repay and won’t end up getting your co-signer in trouble.
Getting a personal loan without credit check is possible but you should move with caution. When you have poor credit history, the risk is transferred to the lender and you'll have to pay hefty fees to get a loan. So make sure you only get a loan if it is absolutely necessary.