There’s only one reason you would be looking for a loan specifically without a credit check. That’s because your credit record isn’t great and you know any other loan provider would instantly reject you because of that silly score. Nevertheless, fear not because there are loans you can get without a credit check, or at least with a bad credit score, which is practically the same thing.
Small Personal Loans
These are the ultimate loans for those who need a loan fast without a credit check. The reason they don’t provide credit checks is because they don’t have time to. Decisions are made in well under 24 hours. Small personal loans typically come with high interest rates and you can’t borrow more than $5,000, in most cases but usually less than $1,000. You do have to be aware of how much you will have to pay back. Thankfully, there are plenty of online calculators to help you work out exactly how much you have to pay and in what period. Compare this with what you can afford and make a decision accordingly.
A credit card is a type of loan because each time you insert your card into a reader you are borrowing a portion of money for a short time (usually until the end of the month). There aren’t any credit cards that don’t perform any credit checks at all, but there are cards for people with poor credit histories. What this translates to is you can receive one of these cards regardless of your actual score because they are designed for people with bad credit histories.
A guarantor loan is touted on TV as something wild and revolutionary. Those who are a little older know that this was how loans used to be done before the invention of credit scores. The way it works is you take out a loan and get someone else to guarantee the loan. If you don’t pay that money back, your guarantor has to. The theory goes that you are not going to screw over a family member or friend. These are promoted so heavily because they are fundamentally against the idea of credit scores.
Can they Help Your Credit Scores?
Although we can tiptoe around using credit scores as much as we like, the reality is a high score is the only way to get the best of the best deals. Many of these loans will contribute towards your credit history, particularly when it comes to credit cards. The easiest way to rebuild your credit history is to take out loans in small amounts that you don’t really need and pay them off. For example, instead of paying cash pay with a card and immediately pay it off. This is a perfectly valid way of getting your score up.
It does take time to rebuild a credit history, but nobody’s score is lost forever. Even if you have experienced bankruptcy, you can go back and repair your credit score. It will take years to do it, but you will be thankful you went through the trouble to do it.