No Credit Check Loans - Facts & Info
Last update: 18 October 2018
For those of you who have a no credit or a bad credit status (which usually means a FICO score that is at 629 or less) it can be extremely difficult to obtain a loan from most online lenders or a bank.
If you fall into this category, you can consider a no credit loan.
No Credit Check Loans – What Are They?
If a lender doesn’t consider the credit history of the borrowers, then they are no credit check loans.
Examples of loans with no credit check that you might be familiar with are payday loans or car title loans. Lenders do not necessarily check the credit score of the applicant in either of these.
No credit loans don’t affect your credit score one way or the other, so are a good way for applicants with a bad credit status or no credit to get emergency cash.
Why Check Credit at All?
If a lender sees that you have had a few hard credit checks within a short time period, it might mean you are very desperate for money.
Maybe you’re even trying to take on extra debt while you still owe money on other debts. You would be considered a risk at that point and this would give you a lower credit score.
Unlike hard inquires, soft credit inquiries won’t affect your score. Only hard credit inquiries send the signal that you’re trying to take on more debt.
Is a No Credit Check Loan for You?
Loans with no credit check can be appealing to anyone who:
1. Doesn’t have credit or has bad credit but needs quick cash
2. Wants to keep any credit inquiry off their credit history
3. Has no other option, such as a bank
No Credit Check Loans – How Do They Work?
A. Payday Loans
Payday Loans – These are loans that are short term, since you pay them back in 2 – 4 weeks.
You don’t need collateral, but since they are fast and don’t have strict requirements, they usually have a high APR, compared to credit cards or other types of personal loans.
Check your particular state laws, since terms and interest rates vary from state to state.
B. Auto Title Loans
Auto Title Loans – You might be able to get an auto title loan if you are the owner of a car or motorcycle. Since you’ll need collateral (such as your car title) they will have a reduced APR.
You’ll give up your title, but your vehicle stays with you for you to drive while making payments.
Your lender who has your title, however, will be the legal owner, or lienholder. After you finish paying the loan off, your car title will be returned.
Learn more by reading our guide: All About How Title Loans Work.
C. Credit Builder Loans
Credit Builder Loans – You can sometimes get loans that will help increase your credit rating. You would take out a small loan with interest rates relatively low.
To use a credit-builder loan, the lender would keep the loan money in an account that you can’t reach until the loan is paid back.
Once you finish your loan, you would have a better credit score, since you’ve been responsible and paid back the money during 12-24 months.
After the loan is paid back, there will be cash in a savings account waiting for you, to use as you wish.
*Remember that with credit builder loans, you will not be able to use the money right away, but they can help your credit rating.
How Do Loans from 5 Star Car Title Loans Work?
At 5 Star Car Title Loans, we offer online title loans with no credit check. Even after you give us the title, you can keep driving your vehicle while making loan payments.
Read below about the No Credit Check Loans Application, Advantages, Repayments, Requirements and more.
A. Online Application
Online Application – Complete the online title loans application or give us a call: (323) 870-9511.
1. Personal Details – Give us your basic details, with name, email and phone number.
2. Car Details –This is your car’s make, year, model and mileage to help us evaluate it so you can use it as collateral.
3. Car Title – Your title must have your name on it and with no lien against it.
4. Identification – ID, such as a driver’s license, military ID, international passport or state-issued ID
5. Regular Income – Whatever income you have, such as your regular paycheck, disability payments or other benefits. Send us proof such as your recent bank statements, proof of social security payments or a stub from your salary.
6. References – Send us 3 names.
You don’t have everything needed, call us for help!
*Disclaimer: More documents may be required, depending on your unique situation. Ask for the list of documents needed when finalizing your loan details.
Approval – After we assess your entire application, we will set your loan amount, which can be between $2,600 and $20,000.
We will approve your loan based on your ability to repay.
Prove to us that you can repay your loan and don’t worry about your credit!
D. Loan Funding
Loan Funding – Following title loan approval, an agent from our team will explain the terms and rates of your no credit loan.
You’ll find out what amount you qualify for. When you accept the loan conditions and terms, you will get your money soon**.
**Disclaimer: After you finish the application process, there may be conditional offers following the Underwriting Department’s review of the details.
The time of funding depends on availability of 5 Star Car Title Loans locations and the completion of the loan process. Typically, funding time is from 1 to 3 hours after approval.
Repayments – Monthly title loans no credit check repayments are with an APR beginning at 60% but can go up to 130%.
These are the rates for customers that are qualified and fit 5 Star Car Title Loans credit criteria.
What Are the Benefits of Car Title Loans with No Credit Check?
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Finding the Best Loan to Fit Your Needs
Before deciding on a no credit check loan, take some factors into account.
If you are looking for urgent cash and your credit score is low or you don’t’ have any credit, take time to review all of your options before making your final decision.
Consider which type of instant loans with no credit checks are most suitable for what you need!
If the decision is made correctly, car title loans can be the responsible and useful financial answer for you.
Understand what credit is, its importance and your credit score before taking necessary steps to choosing a safe, no credit check loan issued by a responsible lender.
Finally, after you selected a safe and responsible lender and read their customer reviews, you can make an informed and accurate choice for a no credit check loan.