Personal loans can make it easier to consolidate debt or pay for expenses you can’t cover from your budget. But poor credit or no credit history could be an obstacle to getting approved.

Getting a personal loan with no credit check is possible if you need to borrow money. The trade-off is that you may have lower borrowing limits or higher interest rates and fees with these types of personal loans.

What Is a No Credit Check Loan?

Typically when you apply for a personal loan or any other type of loan, the lender will pull your credit report and scores. They use your credit history to get an idea of how likely you are to pay back what you borrow, based on your track record of managing credit and debt. This hard pull shows up on your credit report and can trim a few points off your credit score.

A no credit check loan, on the other hand, does not require a hard pull of your credit for approval. Lenders may not look at your credit at all. Instead, your ability to get approved for a personal loan may be based on your income, savings or other assets you can offer as collateral.

How No Credit Check Personal Loans Work

Personal loans that don’t require a credit check are usually designed to be short-term loans. These are installment loans with repayment terms that may last anywhere from one to 12 months.

The loans tend to have lower borrowing limits compared to personal loans that require a credit check. For example, a lender that offers no credit check loans may set the minimum loan amount at $500 and the maximum loan amount at $5,000.

No credit check personal loans are frequently offered by online lenders. You can apply online without a credit check, get approved and get loan funding in just a few business days, depending on the lender.

Payments can be made monthly or biweekly, with some online lenders allowing you to set up automatic payments from your bank account. These loans charge interest and lenders can also charge fees, including an origination fee, late payment fees and/or prepayment penalties.

Who Can Get a Personal Loan With No Credit Check?

Lenders that offer personal loans with no credit check don’t look at credit scores but they may have other requirements you need to meet.

Generally, you may be able to get a personal loan with no credit check if:

• You’re at least 18 (or 19 in some states)
• You’re employed or have steady income
• You have a bank account

Additionally, lenders may require you to be a U.S. citizen or have a U.S. address and a phone number where they can reach you. But the main point to remember is that you don’t need good credit to apply or even any credit history at all.

Pros and Cons of Getting a Personal Loan With No Credit Check

No credit check personal loans can offer advantages and disadvantages. It’s important to understand what’s good (and not so good) about them before you apply.

Pros:

• Poor credit or no credit history won’t count against you when getting approved for a personal loan.
• It can be quick and easy to apply for a no credit check personal loan with an online lender.
• Loan funding can be fast, which is good if you need to borrow money quickly.
• Depending on the lender, you may be able to build positive credit history if your account activity is reported to the credit bureaus.

Cons:

• No credit check personal loans can carry substantially higher interest rates than personal loans that require a credit check.
• Lenders can cap the amount you can borrow, which may make it necessary to take out multiple loans to cover your needs.
• These loans can charge higher fees than what you might pay with a traditional personal loan.
• Setting up automatic loan repayment could trigger overdraft fees if you don’t have enough money in your account to cover the payments.

So, How to Get a Personal Loan With No Credit Check

Getting a personal loan with no credit check isn’t that different from getting any other personal loan. The first step is researching where to find personal loans with no credit check.

Again, you can find these loans online. But you could also talk to your bank or research the options offered at local credit unions to see what might be available.

Once you’ve identified where to find no credit check personal loans, it’s time to really do your research. That means comparing not only the loan terms, interest rates and fees but the lender as well.

While there are plenty of legit no credit check lenders, there are also companies that operate scam lending operations to defraud customers. Checking Better Business Bureau ratings and consumer review sites can help you find a legitimate lender to work with.

Before committing to a no credit check personal loan, however, take time to look at alternatives. Getting a credit builder loan or a secured personal loan through your bank, for example, might be an option. You could also consider applying for a credit card instead. While these borrowing avenues can involve a credit check, they can be less expensive when it comes to the interest rate and fees you might pay.