Payday Loans With No Credit Check in 2021

Payday Loans With No Credit Check
GUIDE
Eric Bank
By: Eric Bank
Posted: June 7, 2021
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When times are tough, payday loans with no credit check may be one of your few alternatives should you need cash in a hurry. You can apply for an online loan in just a few minutes, and, upon approval, the loan provider will wire the money to your bank or credit union account as soon as the next business day. In other words, it’s a one-day loan fulfillment.

You can use one of the network lenders reviewed below to prequalify for a loan instantly and without a credit check. While not a guarantee, prequalification is a positive sign that your loan is likely to receive instant approval.

Online Lenders | FAQs

Payday Loans You Can Prequalify For Without a Credit Check

The following seven lender-connecting services operate by finding you a direct loan source on their networks. They can promptly arrange an online payday loan and/or short-term installment loan for you with a repayment term as short as three months.

Each company can prequalify you without a hard inquiry of your credit, although the direct payday loan lender you’re connected with may require a credit check. While the prequalification criteria vary somewhat, all these companies require you to be a U.S. citizen or resident and at least 18 years of age.

  • Short-term loans up to $5,000
  • Online marketplace of lenders
  • Funds available in as few as 24 hours
  • Simple online form takes less than 5 minutes
  • Trusted by more than 2 million customers
  • Not available in NY or CT
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
Up to $5,000 Varies Varies

See representative example

MoneyMutual is our top pick among the lender-connecting networks because of its good reputation and flexible choices. It can arrange a small loan (starting at $200) even if your credit is bad, as long as you receive a check every one or two weeks from an employer, pension, Social Security, or some other reliable source. You’ll need to prove you have a dependable income of at least $800 per month and a valid checking account to prequalify.

Headquartered in Las Vegas, CashUSA makes it easy to connect with a state-licensed or tribal lender that can provide you with a short-term unsecured loan that may work for you. The company does not require a credit score or a hard inquiry, although some lenders on its network may. Prequalification requires a monthly after-tax income of at least $1,000 from a reliable source.

BillsHappen offers to prequalify you for a short term loan that you can repay over a set number of months. Unlike a payday loan, the short-term personal loans offered do not carry astronomical interest rates. Prequalification requires no credit check, and if you are approved for a no credit check loan, you should be able to collect the proceeds by the next business day.

Located in Tampa, CreditLoan can quickly prequalify you for a short-term personal loan without checking your credit score or history. This lender-connection service offers many tools on its website, including a loan calculator, which helps explain why it has had more than 33 million visitors since its founding. CreditLoan displays the TRUSTe® seal to spotlight its commitment to your security and privacy.

The name says it all. Your bad credit need not prevent you from getting an unsecured loan through the Tacoma-based Bad Credit Loans lender-matching service. You must have a regular monthly income, a valid email address, and a telephone number. Bad Credit Loans can, if you prefer, facilitate a revolving credit line that will give you more control over when to borrow and repay.

  • Short-term loans up to $5,000
  • Online marketplace of lenders
  • Funds available in as few as 24 hours
  • Simple online form takes less than 5 minutes
  • Trusted by more than 2 million customers
  • Not available in NY or CT
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
Up to $5,000 Varies Varies

See representative example

Utah-based PersonalLoans can save you a ton of money by offering short-term signature loans instead of payday loans. You must demonstrate at least $500 a month in income from a dependable source. In addition to lender-matching without a credit check, PersonalLoans can put you in touch with companies that offer debt settlement, credit repair, and credit monitoring services.

CashAdvance is another Utah-based lender-connection service and has been facilitating payday loans since 1997. It can prequalify you for a one- or two-week loan tied to your next paycheck. You can prequalify for a cash loan if you earn an after-tax income of at least $1,000 per month and have an email address, checking account, and phone number.

What Is a Payday Loan?

A payday loan (or paycheck cash advance) is a short-term bad credit loan designed to keep you afloat until your next payday. As an emergency loan, it is usually available within one day and requires you to repay the full loan amount in one or two weeks, when you are next paid. While a payday loan is not technically a secured loan or title loan, it is backed by your next paycheck.

Usually, the lender will debit the payment directly from your bank account. If your account lacks the necessary funds, you’ll be slapped with penalty fees and possibly a higher interest rate.

The biggest advantage of paycheck cash advance loans is that you may be able to get one without a credit check. You will, however, be expected to document enough reliable income to demonstrate your ability to repay the loan on time.

Payday loans are available in two ways:

  • Online, with proceeds available in your bank account on the next business day.
  • At walk-in payday advance stores, where you can leave with your money in just a few minutes.

For some potential borrowers, repaying a payday loan in a week or two is inconvenient. One alternative is an online short-term installment loan with a repayment term of three- to 72-months. You repay these loans with fixed monthly installments for the life of the loan term.

These loans’ interest rates are much lower than those for payday loans, but they are more likely to require a credit check.

Can You Get a Payday Loan Without a Credit Check?

There are two types of credit checks:

  • A soft credit check is one that you either initiate yourself or is performed by an entity that is not attempting to open a new credit account on your behalf. It doesn’t harm your credit rating.
  • A hard credit check is reserved for when you apply for a loan or new credit card. Your authorization is required in advance — the fine print for most credit applications considers your application submission a grant of authorization.

As mentioned, payday loans may not require a credit check. Note that:

  1. Prequalification may include a soft credit check and prequalifying doesn’t guarantee that a loan will be offered or approved by the direct lender.
  2. When a payday lending service connects you to a direct online lender, a hard credit check may follow after you complete the application process. The direct lender is responsible for the final decision on loan approvals, loan amounts, and terms.

Normally, prequalification requires you to:

  • Be a U.S. citizen or permanent resident
  • Be at least 18 of age
  • Have sufficient reliable monthly income, from a job or benefits
  • Allow your income to be verified
  • Have an email address
  • Have an active checking account
  • Have a telephone number

Some payday lending services may ask for additional information, including:

  • Your Social Security number
  • Your mortgage or rent monthly payment amount
  • Your current outstanding loans and credit card balances

It’s a good bet that the direct lender will collect this information if the lender-connecting service doesn’t.

How Do I Apply For a Payday Loan Online?

The application procedure is the same for all seven reviewed lending services, whether you seek a payday advance or a short-term personal loan.

The prequalification process begins when you fill out an online loan request form or answer a series of online loan questions. This step will not impact your credit rating because the lending services do not require a hard pull of your credit history.

If you successfully prequalify, the lending service will send out your loan request on its lending network and attempt to match you to the most appropriate lender. The service will then connect you to the chosen lender where you’ll be able to continue the process.

Direct Lenders vs Lending Networks

If you want to go forward, you’ll need to provide whatever additional information the lender requires. Once you submit the application, the lender may perform a hard pull of your credit report that may hurt your FICO score — typically by five to 10 points, but the impact disappears after one year.

Assuming you pass muster, the lender may make you an offer with specified terms and may give you a loan option or two to consider. Read all the fine print before agreeing to take the loan, which you do by e-signing the loan agreement. The loan proceeds should appear in your bank or credit union account within one or two business days.

When a lending service can’t find you a suitable direct lender, it may send you links for other credit services, such as debt consolidation or debt relief. There is never a fee for using the lending services — they earn an origination fee for each loan successfully completed on their networks.

A payday lender may not do hard credit checks, instead underwriting loans based on other criteria, such as your income. Therefore, payday loans can be easy to get, but it also means that your payment information won’t be sent to a traditional credit bureau where it may have helped you improve your credit score (if you made all payments by their due dates).

A payday loan lender may charge even higher interest rates when you request a no-credit-check loan. These lenders understand that you would only make the loan request if you had bad credit. High interest rates are how these lenders protect themselves from the occasional loan default and write-off.

Of course, many critics say that payday loan interest rates are obscenely high despite their riskiness, and we have to agree that triple- and quadruple-digit interest rates make us queasy.

The following summarizes hard and soft credit checks:

Hard vs Soft Inquiries

Each major credit bureau — Experian, Equifax, and TransUnion — handles soft and hard inquiries. They employ the FICO scoring system to calculate your credit score, and 10% of that score is determined by the number and frequency of hard inquiries. Hard inquiries remain on your credit report for two years, but your score recovers after the first year.

Some lenders explicitly advertise that they don’t do hard inquiries and instead rely on alternative ways to qualify your loan application. Don’t expect these loans to be cheap, as the lenders know there is something wrong with your credit that requires them to protect themselves from late payments and defaults.

Are Online Payday Loans Legal?

Many states regulate payday loans with regard to their maximum APRs and/or permitted number of rollovers. Some states outlaw payday loans, while others have no policy at all regarding payday loans.

Payday Loans in Each State

Congress has attempted to tighten control or even get rid of payday loans, to no avail.

What Are the Dangers of Payday Loans?

The danger with payday loans is their elevated interest rates frequently range from 200% to 2,000% or higher. Additionally, payday loans carry high fees for late payments and often require loan rollovers, which are extensions of the due date accompanied by additional fees and interest.

One excuse that a payday lender may use to explain high interest rates is that the rates apply to relatively small loan amounts over short periods. Let’s just say that reality often differs from the ideal.

In the worst-case scenario for payday loans, a borrower cannot repay on time and must roll over the loan again and again, falling further into debt as interest costs and fees compound. This can lead to a terrifying debt spiral that ends badly — in bankruptcy court.

Carefully Consider Payday Loans With No Credit Check

Payday loans with no credit check are fairly easy to get if you have enough income to satisfy the loan provider. These loans can put money in your pocket quickly but will cost much in the way of fees and interest. Consider a short loan term personal loan instead — they are less risky and expensive.

Most of our reviewed lending services offer both types of loans, and you can get more information by clicking the START NOW button. Read all the information first before deciding on a course of action.

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