How to Get a Loan With No Credit Check & Bad Credit
Sometimes a situation arises where you need money as soon as possible. Or perhaps you hope to purchase a home or a car but a bad credit rating may keep you from being approved. It is possible to get a loan with bad credit -- or without undergoing a credit check.
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Instructions
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Obtain your credit score. You can purchase your credit score online through Experion, Equifax, or TransUnion. If you attempt to get a loan and you know your credit score you can tell it to the lender and see if you are likely to qualify for the loan without the lender pulling your credit rating. You can access your credit report by going to sites like annualcreditreport.com or freecreditreport.com.
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Determine what collateral you may have. Oftentimes if you have an asset that can be liquidated you can use that as leverage for approval for a loan. For example, you can use your car as collateral to get a loan based on its current value if you own the title free and clear. You can also use any expensive artwork or coin collections, or even your home, as collateral for a loan. Typically your credit doesn't matter in this case because you have something to give up if you do not successfully pay the loan back.
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Try to borrow from local lenders or banks that specialize in subprime customers. There are lenders that deal with those with lower credit scores. Some local lenders are willing to do so because they may be able to find you easily in the event they want to sue you to get the money back. Bear in mind that the interest rates when getting a loan without a credit check or with bad credit will be higher. A web site called controlyourcredit.com, run by the U.S. Treasury Department, can help you determine how much it is costing you to have a bad credit score as opposed to a good credit score. The good news is if you pay off the loan while making timely payments you can increase your credit score, which will help you get loans in the future.
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Use a payday loan service. Payday loan services will lend you anywhere from $100 to more than $1,000 until your next payday. They typically will not conduct credit checks, as your job is your credit. They usually require you have a checking account, a job, and, in some cases, collateral. Their interest rates can be extremely high and you should only consider this option if you need a short-term loan. Interest rates can be as high as over 100 percent -- for example, borrowing $300 will end up costing $90 in financing charges if you pay off the loan two weeks later. The Federal Trade Commission website offers warnings about payday loans. The agency urges caution when selecting a company and also suggests alternatives.
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