Skip to main content

Yes! It is possible to get a loan with no credit check. You might have found that you are in need of taking out a payday loan to cover an unexpected payment, such as medical bills or housing repairs, that will leave you short until your next payday. A short-term loan could be a solution to getting the quick cash that will tide you over before your paycheck

The average credit score in the US is 714 as of 2022. However, thousands of Americans have what is considered ‘poor credit’. If you are among them, this article aims to explain how getting a loan works without a prior credit check.


What is a Credit Check?


A credit check works by giving a loan lender a view of your credit history including any active loans you have, any credit cards you have open and any ongoing payments that you pay (such as your car insurance, phone bill and utilities). This ultimately gives an indication of your ability to pay for things in the past. 

If your credit check demonstrates that you make your payments on time, you are likely to get the loan you need. If you have struggled to meet repayments on previous loans this may prevent you from getting your application approved. 

There are some loans available that could be opened without a credit check. These include title loans, credit unions and some other specific loans. This guide will help outline some of the options available.


Why Might I Want a Loan With No Credit Check?


There are a number of reasons you might be looking for a no credit check loan. This can be difficult however as most lenders in the US will carry out a credit check as a way of confirming your eligibility for a loan. 

Millions of potential borrowers are declined loans each year due to a history of bad credit (approximately 16% of Americans have very poor credit). You might have missed repayments for previous loans or other financial obligations you have had previously and this will have a negative impact on your credit report. 

If this happens over a prolonged period of time you can end up with a bad credit score. Therefore when searching for loans online you might be searching specifically for ‘no credit check loans’ as you do not want to have your application rejected due to your credit history. 

Although not guaranteed, there are options are available for finding a lender who can consider factors other than your credit score to allow you to access the funds you need to get back on your feet. 



What Loans Can I Get Without a Credit Check?


There are a number of loan options that do not take credit scoring into account. Harpsey explains some of the key options below:

Title Loans

Title loans allow you to borrow money based against the value of your vehicle. Lenders will assess the condition of your car or van and as long as it is in good condition will lend you between 25% to 50% of its value. If you are unable to repay your loan the lender can sell your vehicle to recover their losses.

Bridging Loan

Bridging allows you to borrow funds against the value of your home over a short period. Similar to other collateral loans, the lender will own a percentage of your property so failure to make your repayments could lead to your home being repossessed. 

Credit Unions 

Credit unions are institutions in the US that are member based. Borrowers pay an annual fee and can earn an annual return on investment for being involved. They are non-profit organizations so often do not take your credit score into consideration when providing loans. The repayment terms can be a lot more reasonable to other forms of finance. 


What Can I Do To Manage My Credit Score?


There are a number of simple changes you can make to improve your credit score. To begin with, you could get a free credit report to get a visual of what your current credit score is and how it has been affected by previous payments you have made previously. 

You can improve your score by closing credit cards you no longer use or pay off existing loans you have open. Other possible actions could be to stop having a joint bank account or even registering to vote could better your score. Ultimately credit checks should not get in the way of you getting the financial help you need.