Written by: Adam West
Edited by: Lillian Guevara-Castro
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. You’ll likely be hard-pressed to find the terms, personal loans, no credit check, and longterm financial health, in the same sentence for a very good reason. 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.
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 to 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.
1. MoneyMutual
- 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
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
2. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% - 35.99% | 3 to 72 Months | See representative example |
- Loans from $500 to $10,000
- Get connected with a lender
- Simple form & quick funding
- Get your money as soon as next the business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% - 35.99% | 3 to 60 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.
4. MoneyMutual
- 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
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
5. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| 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 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.
- Don’t let a low FICO score stop you from applying – we approve applications others may not.
- You don’t need good credit to apply.
- Just complete the short application and find out in 60 seconds if you’re approved.
- When you need assistance our award-winning US-based Customer Service agents are there to help.
- FICO scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any PREMIER Bankcard® product.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 4 minutes | See Provider Website | Yes | 9.0/10 |
- You don’t need good credit to apply.
- We help people with bad credit, every day.
- Just complete the short application and find out in 60 seconds if you’re approved.
- You can build* or rebuild your credit: apply for a PREMIER Bankcard credit card, keep your balance low, and pay all your monthly bills on time.
- Don’t let a low FICO score stop you from applying – we approve applications others may not.
- FICO scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any PREMIER Bankcard® product.
- *Build credit by keeping your balance low and paying all your bills on time every month.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 4 minutes | See Provider Website | Yes | 9.0/10 |
- Brink’s gives you the peace of mind you deserve. Securing cash and valuables since 1859.
- With Brink’s Direct Deposit, you can get paid faster* than a paper check.
- No late fees or interest charges because this is not a credit card.
- Use the Brink’s Money Prepaid Mobile App to manage your account on the go and get text message or email alerts (Message & data rates may apply.)
- *Card issued by Republic Bank & Trust Company, Member FDIC. Card may be used everywhere Mastercard Debit cards are accepted. “Apply Now” for full details.
- See additional Brink’s Prepaid Mastercard® Details.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 5 minutes | N/A (Prepaid) | No | 7.5/10 |
+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.
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