Credit checks are commonplace in the American loans market. They help to give lenders an idea of how you’ve managed credit in the past along with information on any credit you’ve currently got outstanding.
For those with a poor credit score or no credit history at all, this can make applying for some loans tricky business, but the good news is that specialist loans without a credit check are available.
Let’s take a closer look at how no credit check loans work and how you can apply for a great rate on your next loan today.
How Do Loans Without A Credit Check Work?
Loans no credit checks have a lot of similarities with traditional loans in that you’ll be able to choose an amount to borrow and a term over which you’d like to repay the balance. If accepted, funds are then deposited into your checking account for you to use, typically within 24 hours.
The key differences with no credit check loans come during the application. Since lenders won’t be using your credit score as part of their overall assessment, they may require further evidence of your income or employment status instead.
You may need to provide documentation such as pay slips, bank statements, and your Social Security Number, so have these close to hand before you apply to speed up the process.
Similarly, if you decide to use a guarantor as part of your loan application, it will be their credit score rather than yours which will be assessed.
To help reduce the risk of lending to someone without checking their own credit score, they’ll instead use the credit history of someone you know who will also agree to step in and make your repayments should you ever be unable to pay,
Who Are No Credit Check Loans Suitable For?
Anyone can apply for no credit check loans, however, as a general rule of thumb, they tend to be more expensive than loans offered by lenders who do carry out more extensive background checks.
In our experience, loans with a credit check are more commonly used by those with a less than perfect credit score or for those without any credit history at all.
Borrowers With A Poor Credit History
If you’ve had issues managing credit in the past then this may have had a negative impact on your credit score. As a result, you could find it harder to obtain standard forms of credit, particularly those that put a heavy emphasis on credit checks during their application assessments.
No credit check loans can help you to overcome this hurdle with lenders instead of focusing on your ability to repay any debt offered rather than basing their decision on your credit score.
Borrowers With No Credit History
You might think that if you’ve never needed credit in the past that this would be seen as a positive by lenders, but unfortunately that isn’t the case.
If you’ve not had credit cards or other loans before then lenders won’t have any evidence on which to base their decision. Their cautious approach to lending means that those without a credit history will often be treated in a similar way to those with a poor credit history, often making loans without a credit check a more viable option when funds are needed fast.
What Can Loans Without Credit Checks Be Used For?
No credit check loans can be used for almost any personal expense. The funds will be deposited straight into your checking account, leaving you to spend the money as you wish.
In our experience, the most common uses for loans no credit checks include:
- Home improvements
- Vehicle repairs
- Medical bills
- Utility bills
- Vacation spending
- Household expenses
How Can I Apply For No Credit Check Loans?
Trying to find loans no credit checks used to be a real headache with so few lenders on the market offering these loan types. Fortunately, this is a thing of the past with hundreds of no credit check loans now available to US borrowers.
It all starts by comparing loans with no credit checks online. Simply fill in some basic information about you and the type of loan you’re looking for and we’ll search hundreds of US lenders on your behalf in seconds.
It’s then down to you to choose a lender you feel best meets your circumstances before finalising your application online in a matter of minutes. If accepted, you’ll need to sign your online credit agreement and funds can then be deposited into your checking account.