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No credit check installment loans
Unexpected expenses and events put stress on both finances and families — especially if your bank balance isn’t looking great and bills can’t wait. Personal loans offer one way to solve this short-term problem, but with most lenders approving borrowers with good credit scores, not everyone can access this option.
No credit check installment loans offer another alternative, albeit not a very good one. Unlike traditional loans, no credit check loans are typically offered for a very short period of time with much higher APR, and come with borderline predatory lending practices.
The best no credit check installment loans of 2021
- CashAdvance.com: Best Marketplace Option
- LendUp: Best for Small Amounts
- CreditLoan.com: Best for Large Amounts
Best no credit check installment loans at a glance
|APR Range||Loan Amount||Term||Funding Time|
|CashAdvance.com||14%–1,546%||$100–$1,000||7 days–12 months||Next business day|
|Lendup||Varies||$100.00–$255.00||Varies||Next business day|
|CreditLoan.com||Variable with lender||$250–$5,000||Variable with lender||Next business day|
Rates accurate as of 09/18/20
What is a no credit check installment loan?
A no credit check installment loan lets you access funds on-demand without the need for a traditional credit check. Lenders will generally ask for proof of income, Social Security number and other relevant information but won’t require a soft or hard credit check to approve your loan.
[ Related: The Best Alternatives to Payday Loans ]
Like traditional installment loans, payments are taken on a fixed schedule with a specific end date which sees the loan fully paid off. Terms range from one week to one year with higher APR for shorter loans. Most lenders also charge fixed origination fees and levy penalties for not making payments on time. If you can’t keep up with your payments, lenders will sell your outstanding debt to collection agencies.
Despite our “best of” list above, we want to make it clear: Installment loans with no credit check are not a good idea unless you have absolutely no other choice. While short terms and almost-instant funding are appealing, the amount you pay in interest over time is staggering — and even a single missed payment could make an already precarious credit situation much worse.
How no credit check installment loans work
Most no credit check installment loans work by connecting potential borrowers with third-party lenders. While some companies do finance these loans themselves, most act as go-betweens rather than assuming the risk of potential loan default. Although this makes the application process easy and free, it also means that these loan-finding services have no visibility into the final interest rates and costs of your loan — while you might get offered a great deal, you may also find yourself facing a predatory APR.
No matter who provides them, installment loans for bad credit share two key features.
While personal loan rates for good credit borrowers often range from just under 10% up to 35%, APRs for short-term, no credit installment loans can easily cross the 70% mark for terms of a month or more.
For week-long loans, meanwhile, things get much worse. Some APRs even cross the 1,500% mark. Consider a $100, seven-day loan from CashAdvance.com. The site’s rate calculator returns a potential APR of 782%–1,564%, which translates to you paying back $115–$130 to access $100. Raise that to $1,000, and you could pay up to $1,300 — if you’re already strapped for cash, this is a significant cost that could derail your payments.
Short repayment terms
No credit check installment loans also feature short payback terms which are often problematic for borrowers who don’t have access to cash on-hand. While some lenders will offer up to a year of installment payments, most are looking for full repayment in no more than four months — and sometimes as little as one week.
Are no credit check installment loans safe?
In a word: No.
While these loans come with the benefit of cash on-demand, they also come with significant drawbacks. The no credit check process is the first problem — although these lenders may not check your credit rating before loaning you money, defaulting on your loan payments will make an already-damaged credit score much worse, in turn making it harder to obtain personal loans, credit cards or mortgages moving forward.
The second issue is total cost. Although lenders are required to disclose all fees, penalties and interest rates before you sign any credit agreement, in most cases you’ll end up paying significantly more over time than the original amount of your loan, in turn hurting rather than helping your financial situation.
[ Read more: No Credit Check Loans: How They Work ]
Finally, these installment loans for bad credit often make the process seem easy — money comes out of your account at a fixed rate and when the term is up your loan is discharged. But this ignores the fact that you were likely facing financial frustration to start — and if you didn’t have the money on hand when you borrowed it, chances are you won’t have it in a week or a month either. This increases your chance to default, in turn further damaging your credit rating and your finances.
Alternatives to no credit check installment loans
Before choosing a no credit check installment loan, consider other alternatives.
Use a cosigner on a personal loan
Many personal loan providers will allow you to use a cosigner on your loan — another applicant with good or great credit that lowers the risk for the lender and increases your chances of approval. It’s worth nothing that while this option can give you more favorable terms and significantly lower APR, your cosigner is equally responsible for the payment of this loan. Failure to make payments will negatively impact their credit score as well as yours, which could put a big strain on your relationship with that person.
[ Read: Should You Co-Sign a Loan? ]
While high credit utilization combined with making only the minimum payment each month isn’t ideal for your credit rating, it’s better than paying predatory APR or defaulting on your installment loan. Not only do credit cards have significantly lower APRs and no requirements to fully pay off your debt by a specific date, many credit card companies are willing to negotiate if you can’t pay back all of your credit debt, meaning you may be able to settle for paying a smaller amount to have your entire debt discharged.
[ More: How to Apply for a Credit Card ]
Borrowing from friends or family
Another option to avoid using no credit check loans is borrowing from friends or family. While this carries the potential for uncomfortable conversations about how much you need to borrow and why, it comes with the big benefit of non-existent APR. Your best bet is to negotiate fair terms for repayment and stick to them as much as possible to reduce potential relationship stress.
[ Read: The Best Peer-to-Peer Loans ]
If you’ve got no money left in the bank but need to put food on the table, no credit check installment loans can seem like the only way out. Before taking this route, however, it’s worth checking to see if there are any local food pantries in your area. These charitable organizations act as distribution centers for families to help bridge the gap and ensure no one goes hungry.
Payday Alternative Loans
Created by the National Credit Union Administration, Payday Alternative Loans (PALs) are offered by federal credit unions in amounts up to $2,000 with terms ranging from one month to 12 months. Credit unions can charge a maximum fee of $20 to recoup processing costs and a maximum APR of 28%, far less than private no credit check installment loans.
You may also be able to access resources within your community such as credit unions willing to make small personal loans without exorbitant APRs or non-profit credit counseling organizations that could help you restructure or renegotiate your outstanding debt rather than taking out a short-term installment loan. Many community centers also offer free financial education classes to help get your spending and borrowing back on track before no credit loans become necessary.
[Editor’s Note: Due to the nature of no credit check loans, we have omitted no credit check lenders from our SimpleScore methodology. Please exhaust all other financial options before taking out a no credit check loan, as the interest rate on these products often leads to further financial issues and perpetual a cycle of borrowing and debt.]
Last updated September 18, 2020 – Updated reviews and editorial guide.
We welcome your feedback on this article and would love to hear about your experience with the personal loans we recommend. Contact us at firstname.lastname@example.org with comments or questions.