When it comes time to get a loan, many people fear the credit check that goes along with it. Some people, do not have much credit history; but for others, their credit score is low due to mistakes they have made. Making mistakes in the past does not get rid of the need for money now, so there are a few types of loans you can get without having to go through a credit check.
Student Loans
If you are looking for a loan to go to school, you will want to consider applying for student loans. These loans rarely require a credit check and are based on financial need. You will need to be able to show proof of your income (through pay stubs or filing your taxes) and where you intend to go to school. These sizable loans are awarded each year and can be used for any expense that is for your education (such as books, tuition, and rent). Finally, when you are applying for student loans, look for loans that do not need to be paid back until after you have finished college. This will allow you to concentrate on your studies, and not the growing interest rates.
Secured Loans
Many institutions will allow you to borrow money without checking your credit if you are applying for a secured loan. These loans will not be as much as a loan with a credit check; however, they will have better interest rates than a payday loan location. Most banks will offer a secured loan with proof of income and good banking history. There are a few banks that will even offer secured loans if you complete a budgeting or credit information class. Finally, many banks will allow you to borrow against your savings account without a credit check.
Unsecured Loans
The final type of no credit check loan is unsecured personal loans. These personal loans are unsecured and often have a high-interest rate. Depending on where you apply for your loan, you may be able to make payments instead of having to repay the entire amount by a specific date. However, the interest rates may make it so that it is better to pay off the entire amount. Payday loans should be used as a last resort, and only when you need a few hundred dollars. In addition, you want to make sure the location reports to the credit bureau so your timely payments help build good credit.
Unsecured loans can often be found online, as well as in person. Money can be put directly into a checking account within 24 hours, or you can walk out of a building with cash in hand. Be careful of taking a loan out that you cannot repay. Secured loans can take your belongings instead of your payment, while student loans can go after your taxes. When you are building your credit, you want to make sure you take out what you can pay back, and make your payments on time.
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