8 Online Personal Loans (No Credit Check, Bad Credit OK)

8 Online Personal Loans (No Credit Check, Bad Credit OK)
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Adam West
By: Adam West
Posted: May 10, 2018
BadCredit.org's popular "How-To" series is for those who seek to improve, rebuild or better understand their subprime credit rating.

Applying for a personal loan with poor credit can often be an extreme exercise in persistence as you search for a lender that will look past your low score.

But every borrower has their limit, and each new rejection can increase your stress level and make you more desperate to find the financing you need. Soon, even those sketchy-sounding “No Credit Check Required!” ads start to look like an option.

And that could be a very expensive mistake. Better options are almost always out there, so you’re better off exploring those before turning to high-cost no-credit-check lenders.

Installment Loans | Short-Term Loans | Credit Card Loans

Why You Should Avoid “No Credit Check” Loans

It sounds like a great deal. No credit check means no nasty rejection when the lender discovers your low score, right? These lenders must be saints, to help out folks with bad credit.

Not so much. Lenders who don’t require credit checks aren’t doing it out of the goodness of their own hearts.

No, subprime lenders who have such high risk tolerance do it because they can charge desperate borrowers just about any amount of fees they like in exchange for those two little words, “You’re approved.”

As a result, no-credit-check loans will often come with remarkably high interest rates, a fact camouflaged by calling them “finance fees,” which makes it harder to compare with regular loans that operate on transparent APR (annual percentage rate) systems.

Example APR Calculation for Short-Term Loan

For instance, the example loan in the table above shows the short-term loan has an actual APR of over 430%. And those super high fees are usually due all at once — and within weeks.

Furthermore, most above-board lenders will use credit checks and financial information to ensure you can reasonably repay your loan. Not so with no-credit-check lenders

With the sole goal of profit, these lenders are often perfectly content to have you “rollover” your loan indefinitely, trapped in a repayment cycle that continues to put finance fees in the lenders’ pockets.

Some of these no-credit-check loans may also require collateral, most commonly a vehicle, which can mean you’ll lose your car if you can’t repay your high-priced loan.

Best Online Installment Loans for Bad Credit

Even with poor credit, personal installment loans are often the easiest type of financing to repay because they allow monthly payments instead of requiring the principal and fees be repaid all at once.

At the same time, they do come with credit checks, so it can take a little shopping around to find a good lender if your credit score is low. Online lending networks, like our top-rated picks below, can be an easy way to connect with dozens of lenders from around the country.

   
★★★★★

4.9

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$500 to $10,000 5.99% - 35.99% 3 to 72 Months

See representative example

+See More Personal Loans for Bad Credit

Although installment loans often come with origination fees, that fee is typically included in the APR provided to you with your loan offer, making it easier to compare loans by directly comparing the APRs rather than solely the interest rates and variable origination fees.

With a personal installment loan, you can have a lot of control over the size of your monthly payment by varying the length of your loan terms. Longer-term loans will generally have lower monthly payments than short-term loans, making them easier to repay.

Keep in mind, however, that the longer you take to repay your installment loan, the more interest fees you’ll wind up paying, making your overall loan cost more expensive.

Best Online Short-Term Loans for Bad Credit

Short-term or cash advance loans are usually the types of loans that are offered by no-credit-check lenders, but not all short-term loans are as dangerous as those that don’t require a credit check. By checking your credit, some short-term lenders can limit their risk, allowing them to charge lower fees than those who don’t check credit.

The best way to find a short-term loan that minimizes your fees is to shop around and compare options.

An online lending network, such as those below, can provide access to a large number of potential lenders so you can see the rates and fees of multiple lenders from a single application.

  • Short-term loan of $100 to $1,000
  • Bad credit is no problem
  • Large network of lenders
  • Loan decision as fast as a few minutes; funding as soon as next business day
  • Required: Income of $1000+/month and at least 90 days on job
  • Click here for official site, terms, and details.
             
★★★★

4.0

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$100 to $1,000 200% - 2,290% Varies

See representative example

+See More Personal Loans for Bad Credit

Although short-term loans from more reputable lenders that perform credit checks can be more affordable than the ridiculously expensive no-credit-check loans, most short-term or cash advance loans are going to be pricier than an installment loan.

In most cases, if you can qualify for a personal installment loan that meets your financing needs, it’s financially safer to go that route. If you do need a small short-term loan, research the lender carefully and never borrow more than you can pay off in your initial loan period.

Best Credit Card Loans for Bad Credit

Depending on the nature of your financing needs, a personal credit card may actually be a good solution when you have poor credit, particularly if you only need to finance a small amount.

Not only do credit cards usually have lower interest rates than short-term loans, but they are revolving credit lines, so you can use them again once you’ve repaid the balance.

Many of our favorite bad-credit credit cards specialize in helping subprime borrowers and have flexible credit requirements.

  • Checking account required
  • Application response in 30 seconds
  • Know the score! Quarterly FICO score on your monthly billing statements
  • All credit types welcome to apply
  • Your First PREMIER Bank credit card activity is reported to the Consumer Reporting Agencies each month. Making your payment on time and keeping your balances low relative to the credit limit will result in positive marks on your credit report
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
6 minutes See issuer website Yes 9.5/10
  • Holiday gifts they'll like, payments you'll love! Use your line of credit to shop over 550,000 items from great brands like Samsung, KitchenAid, and DeWalt
  • Take advantage of low monthly payments if you apply and are accepted for a Fingerhut Credit Account issued by WebBank, who determines eligibility and qualifications for the terms of credit
  • Fast, easy online application process and a quick decision
  • Not an access card
  • Click here for official site, terms, and details.
 
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 Minutes See issuer website Yes 9.0/10
  • All credit types welcome to apply
  • Monthly reporting to the three major credit bureaus
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere that Mastercard® is accepted
  • Free online account access 24/7
  • Checking Account Required
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes See terms Yes 8.5/10

+See More Credit Cards for Bad Credit

While credit card applications will come with a credit check, you can often check for pre-qualification offers before you apply to get an idea of your chances for approval.

Although not a guarantee of approval, being pre-qualified can indicate that the card may be a good fit.

Pre-qualification uses a soft credit inquiry that won’t impact your credit score, so you won’t risk a hard credit check on a credit card for which you have little chance of approval.

Borrow without Credit Fears

There’s a wise old saying, “If something seems too good to be true — it probably is.” That old saying was tailor-made for no-credit-check loans.

As appealing as it can seem to find financing without the perils of a credit check, especially after being rejected for other loans, that temptation can get you (and your bank account) into trouble.

Before signing up for a risky loan with no credit check, be sure you’ve exhausted all of your better, more affordable options.

Even if you’re down to your last resort, seriously consider whether you can repay the loan — and all its fees — on the due date without an extension. If you can’t, then avoid no-credit-check loans altogether.