Installment Loans: No Credit Check

An installment loan is a type of credit where you borrow a fixed amount of money and repay it in periodic installments. Most of the common types of loans, including car loans, mortgages, and student loans, are all examples of installment loans.

Most lenders rely on a credit check to make sure that the people they lend to can pay the money back. These credit checks can range from superficial, such as finding out how much you earn per month, to more in-depth looks at your credit history.

If you have bad credit, a no-credit-check installment loan can look very appealing. The main drawback of no credit check installment loans is that they usually have very high interest rates, especially when compared to installment loans that have gone through a credit check process.

Best Installment Loans No Credit Check Alternatives

Loans	Amount	Cost / APR ?	Bad Credit	Features
	$500 - $10,000	Individual rates	Allowed	Loan terms start at 3 months. Next-day deposit: In some cases ? High approval rates ? Time for decision: 1.5 min ? Type of service ?
	$400 - $50,000	Individual rates	Allowed	Same-day deposit: In some cases ? High approval rates ? Time for decision: 1.5 min ? Type of service ?
	$300 - $5,000	Individual rates	Allowed	Same-day deposit: In some cases ? High approval rates ? Time for decision: 1.5 min ? Type of service ?
(Direct Lender) (Personal loan)	$1,000 - $5,000	APR: Starting at 99.00% ?	Allowed	Loan term 9 months to 3 years Next-day deposit: In some cases ? Low approval rates ? Time for decision: 1.5 min ?
(Personal loan)	$300 - $35,000	APR: Starting at 6.90% ?	Allowed	Loan term 2 months to 7 years Credit check type: Soft ? Next-day deposit: In some cases ? Min creditscore: 550 High approval rates ? Time for decision: 1.5 min ? Type of service ?
	$100 - $1,000 $1,000 - $5,000	$15 - $300 ? APR from 6.9% ?	Allowed	Same-day deposit: In some cases ? High approval rates ? Time for decision: 1.5 min ? Type of service ?
(Personal loan)	$500 - $35,000	APR: Starting at 5.99% ?	Allowed	Loan term 3 months to 6 years Credit check type: Soft ? Next-day deposit: In some cases ? Min creditscore: 580 High approval rates ? Time for decision: 1.5 min ? Type of service ?
	$200 - $5,000	Individual rates	Allowed	Same-day deposit: In some cases ? High approval rates ? Time for decision: 1.5 min ? Type of service ?
(Personal loan)	$500 - $40,000	APR: Starting at 5.99% ?	Allowed	Loan term 2 months to 5 years Credit check type: Both ? Next-day deposit: In some cases ? Min creditscore: 580 High approval rates ? Time for decision: 1.5 min ? Type of service ?

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Benefits of Installment Loans vs. Payday Loans

Payday loans can help people get through emergencies and unexpected payments. Personal installment loans can fulfill the same function by allowing you to get a sum of cash relatively quickly and allowing you to repay it over several months or years.

Not all installment loans are the same, and they don’t work the same as payday loans. Both payday loans and installment loans with no credit checks have advantages and disadvantages, so it’s important to understand the benefits of both before signing any paperwork.

Installment loans have much longer repayment terms than payday loans, which means smaller monthly payments. You can play around with your repayment terms to find a good balance between the length of your repayments and the amount you can afford to pay per month.

A huge benefit of installment loans over payday loans is that the annual percentage rate (APR) is lower. A high interest rate means that you spend more working to pay off the interest without actually paying off the amount that you borrowed. A lower interest rate is always better since it allows you to put more money toward actually paying off your loan. Payday loans have notoriously high APRs, which means that you’re paying a lot more than what you initially borrowed.

Many payday loans have a lot of fine print regarding early repayments and extra fees. Installment loans tend to be less confusing and won’t penalize you for paying off your loan earlier.

Finally, installment loans can help you build up your credit history as long as you keep up with repayments. Payday loans have very short repayment times, so they don’t have any impact on your credit history, even when you pay them off on time.

The main benefit that payday loans have over installment loans is that they often don’t require a credit check. They can be processed much faster and people typically get their money on the same day they apply for the loan. Installment loans can take longer, especially for larger sums of money where a person has to approve the loan manually. If you have bad credit, you may find getting an installment loan with reasonable repayment terms difficult, as many lenders negate the risk of bad credit by increasing interest rates to almost payday loan rates.

How Do Installment Loan Credit Checks Work?

When you apply for an installment loan, the lender will often run a soft credit check to find out if you can afford the loan or not. Soft credit checks don’t affect your credit score and provide the lender with information about your income. Knowing your income will help the lender make their decision and can influence your interest and repayment terms.

Lenders will also often conduct a hard credit check, where they request your full credit history from one or more of the established credit bureaus. This type of credit check requires your consent and will also affect your credit score. The lender uses this credit report to determine your creditworthiness and decide whether or not to approve the loan. If you have poor credit, the lender may still lend you money, but at a much higher interest rate in order to offset the risk of you not being able to repay your loan fully.

How Can I Check My Credit Score?

Every person has the right to know their credit score. You are allowed to access your full credit history from the three main credit bureaus for free once a year. If you want reports more often, you’ll have to pay a fee per credit report generated.

You can get your credit score directly from Experian, Equifax, or TransUnion, or through one of many third-party sites that can compile the information into an easier-to-understand format.

Alternatives to Installment Loans with No Credit Check

If you urgently need money in your bank account but have poor credit, you want to take out an installment loan with no credit check. However, there are several alternatives to installment loans that may have better interest rates, even with poor credit.

Credit Unions

Local credit unions are often more willing than large lenders to work with their clients to provide reasonable interest rates and repayment terms. The federal credit union interest rate cap is 18%, which is reasonable, especially if you have poor credit. The process of getting a loan approved by a credit union may be longer than an installment loan, but the low interest rate and flexible payment terms make them an appealing option.

Payday Alternative Loans

Some credit unions have started offering PALs as an alternative to payday loans or no credit installment loans. These small, $200-$1,000 loans can be repaid in terms of one to six months and have a maximum APR of $28 with a capped application fee of no more than $20.

Online Lenders

Many online lenders are willing to lend money to people with bad credit scores. Several lenders will also consider your income and employment status in addition to your credit score, which can help reduce your interest rate to something more reasonable.

Joseph Smith
Writer and editor

Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
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