4 Types of Loans That Do Not Require a Credit Check

If your credit rating is low and you need an emergency loan, you may want to think about reviewing the following funding methods. The following types of financing will help you meet emergency expenses even if you have a poor credit score. The funding provider will not check your score on financing such as payday loans, pawnshop loans, or title loans. You can also try taking out cash through a credit card cash advance.

1. Payday Loans

A payday loan is an unsecured type of funding that which requires that it is paid back on the payday of the borrower. Therefore, this short-term loan does not usually require installments. Most of the loans are around $100 to $1000, depending on a person’s needs for quick cash.

If you take out this type of no-credit-check loan, make sure that you pay the loan back on time. Because the interest rate is exceptionally high, you should pay back the loan quickly. This loan is designed only for people who need quick emergency cash. Don’t extend your payments. Otherwise, you can get into trouble paying back the debt.

2. Pawnshop Loans

This loan is secured with collateral such as jewellery, electronics, or similar desirable items. You take out the loan and leave the item with the pawn shop. If you default on your loan payment, the shop secures the collateral and resells it to cover their losses.

Just as with a payday loan, a pawnshop loan comes with a high interest rate. However, the rate is usually lower than the APRs for payday funding. If you don’t repay the loan, at least you won’t damage your credit or get notices from debt collectors. The pawn shop will only take what you provided for collateral.

3. Title Loan Financing

Title loans are yet another type of financing that does not require a credit check. You secure the loan with your car’s title. Therefore, your car and title will be used for repayment if you default on the title loan amount. As with the other loans, you don’t have to worry about damaging your credit score. However, if you do choose to take out title loans, you should be prepared to the possibility of losing your car if worst comes to worst and you cannot repay the loan amount.

Title loans are probably the best way to obtain money without having your credit score checked as you only need a vehicle to quality for the loan. If you have a car or truck and a regular source of income, it is easy to apply for title loans.

4. Credit Card Cash Advances

Another type of loan is a credit card cash advance for a short-term solution for an emergency payment. You won’t have your credit checked. However, taking out this type of loan can ultimately affect your credit score, especially if you get behind in paying back the loan amount.

Interest rates for credit card cash advances are usually higher than when you charge items on your credit card. Also, you will pay a cash advance fee, which can be as much as 5% of the borrowed amount.