The Best Ways to Get a Personal Loan without Credit

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In today’s economy, it can be difficult to keep your credit up to par.  More and more people are using credit cards and the majority of these people end up placing themselves in debt.  People have a tough time paying bills on time for a number of different reasons.  Situations may come up where you need to acquire some cash, but where do you turn when your credit is too rough for you to receive a normal loan?  Fortunately, there are ways in which you can receive a loan without ever being subjected to a credit check.  Most loans that do not require a credit check are short-term loans.  Non-credit checking lenders are generally a quick and easy place to turn to if you seek cash immediately. However, loans that do not require a credit check do require some sort of collateral, so there is a risk factor when accepting these kinds of loans.

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If your credit history is less than perfect, do not give up on receiving the funds you seek.  Do some research to decide what the best route is for your individual financial situation.  Even if your credit score is not perfect, never think that there is nowhere for you to turn to receive the aid you need.

Options for loans available without credit checks

  • Car title loans— Car title loans are one way to receive funds if your credit score won’t allow you to get a loan from a bank.  In exchange for the loan, you put your vehicle up as collateral to the lender.  The lender, such as, gives you the funds that you seek but in exchange, you authorize to give your vehicle up to the lender if you fail to make payment deadlines.  This loan has both pros and cons that should be considered before making the choice to receive a car title loan.  It is a fast means of cash with no credit check, but be sure to weigh out the consequences of not being able to pay back the loan in a given period of time.
  • Payday loans— Payday loans are short-term loans that can be used to help get you the money you need if you run into a rough sport and your credit score is a problem.  Payday loans can generally get you a modest amount of money, but they are extremely short term.  Payday loans typically must be paid back within two weeks.  The way a Payday loan works is you, the borrower, writes a check to the lender for however much you want or however much he agrees to lend you.  You leave that check with the lender and when you are ready to repay the loan, you can cash the check to pay it back.  If you cannot pay back the loan on time, the lender does not cash the check but simply adds on fees.  This process can become extremely expensive and could put you in a worse place financially when it is all said and done.  However, if your credit is a problem, a payday loan may be one of your only options.  It is crucial to be extremely responsible when taking out a payday loan because debt can accumulate quickly if the original loan is not paid off in time.
  • Personal collateral loans— While car title loans are a popular form of collateral loans, they are not the only type.  Collateral loans can be used to open huge opportunities for borrowers that may not otherwise be available to them because of poor credit.  Collateral loans often work extremely well to get money in the hands of those who need it, fast.  Lenders who deal with collateral loans are often eager to work with those willing to place valuable items up as collateral.  One major pro of collateral loans is that the loan never gets reported to a credit agency, so your credit score does not affect the decision of the lender to give you a loan at all.  Items that could be used for collateral include cars, boats, guns, houses, watches, gold, silver, airplanes, musical instruments, RV’s, motorcycles and more.  Collateral loans are a great way to get you the funds that you are seeking.  Like car title loans and payday loans, the decision to receive a collateral loan should be examined very closely with all possible outcomes weighed.  While it is a means of fast cash, you could lose some of your most valuable possessions if you make numerous late payments, or are unable to pay back your loan in the specified time.

Paul Howard is a professor of finance who brings over 30 years of experience to the table. He’s passionate about helping others achieve the same financial independence he earned over three decades ago. 

Sarah Pinkerton

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