Do No Credit Check Loans With Guaranteed Approval Exist?
Full Disclosure: If you use a link on this site to apply for a product or service, then Credit Help Info will get a referral fee.
Click here for more details
If you’re in the market for a no credit check loan, you may have come across companies that promise “guaranteed approval.” Is it really possible for companies to make this claim?
The simple answer is no. Loans involve risk from both parties, and thus it’s not realistic for companies to offer 100% guaranteed approval.
However, many companies still have very high approval rates on no credit check loans. Even if you have bad credit, it’s still possible to get approved. In this post, we’ll explain why “guaranteed approval” is a false promise, and how you can still improve your odds of getting a no credit check loan.
Do Direct Lenders Give Guaranteed Approval?
No direct lender or loan company can guarantee a 100% approval rate for no credit check loans. To see why, consider the risk that these lenders must take on.
Most customers who apply for no credit check loans have lower credit scores. In order for companies to offer a no credit check loan, they must rely on other measures such as monthly income. If your monthly income is too low, this may disqualify you.
In other words, while these loans do not involve a credit check, lenders still have to perform some other kind of basic check. This means that there’s always a chance that you might be rejected, however rare this may be.
What If a Company Claims to Guarantee Approval?
We have already seen that it’s unrealistic for companies to guarantee approval on no credit check loans. Any company that claims a 100% approval rate is lying.
Some companies still try to get away with this by adding asterisks. For example, they may say that their payday loans have guaranteed approval, as long as you have a monthly income of three times the amount of the loan.
LendYou, however, is a company that you can trust. They are a platform that helps connect consumers with other payday lenders. They never claim to guarantee approval for their clients, but they do their best to maximize your odds of finding a loan.
What Loans Are The Easiest To Get Approved For?
A traditional personal installment loan typically involves going to a bank, who will make a hard pull on your credit report. The higher your credit score, the more likely you are to get approved at a favorable rate.
Your credit score is the only factor that the bank considers. Because of this, these loans are extremely hard to get approved for if you have bad credit. Luckily, there are multiple types of no credit check loans that you can still apply for.
Types of No Credit Check Loans
There are three main types of no credit check loans: payday loans, title loans, and pawn shop loans.
Payday loans are high-interest, short-term loans that usually last just 30 days or less. They also involve smaller amounts of money, usually no more than $1,000.
Payday loan lenders typically won’t run your credit or ask you to give up anything as collateral for the loan. Instead, they expect you to be able to fully repay your loan once you earn your next paycheck, hence the name “payday loan”.
At the time of this writing, payday loans aren’t legal in all states, according to the Consumer Federation of America. In states where payday lending is legal, there may be restrictions on interest rates and other loan terms. The National Conference of State Legislatures has an updated list of these laws.
Though you’re not guaranteed to get a payday loan, many of them have relatively high approval rates. We recommend LendYou for the next best thing to a no credit check loan with guaranteed approval.
Title loans are another type of high-interest loan that can last anywhere from 30 days up to a few months. Unlike payday loans, title loans involve collateral.
In a title loan, you give up your car title in exchange for cash. Your vehicle’s value is used to determine how much you qualify for. Usually, lenders will offer you between 25 to 50 percent of your car’s value.
Throughout the duration of your title loan, you’ll still get to keep your car. However, if you fail to repay your loan, the lender may repossess your vehicle.
Currently, title loans aren’t legal in all states. According to Cpnm.org, different states have their own title loan legislation. The Consumer Federation of America is the most reliable resource listing states that permit title loans, and what the various restrictions are.
Title loans also do not have guaranteed approval, but since you’re giving up your car title as collateral, there’s a high chance that you’ll be able to get approved. You can begin your title loan search with our list of the best title loan companies in the United States.
Pawn Shop Loans
Pawn shop loans are another type of no credit check loan where you have to give up a valuable item that you own as collateral. Depending on the pawn shop, a loan can last a couple days, weeks, or months.
Because you can literally pawn anything, pawn shop loans can range anywhere from just $10 to $1,000 or even more. Lenders are typically willing to give you 20 to 50 percent of the value of your item.
Pawn shop loans may be seen as less risky than the other two options, since you only lose your item in the worst case. However, pawn shop owners also may not give your item a fair valuation, so be careful before entering into an agreement.
Are No Credit Check Loans Safe?
All three of these types of no credit check loans are safe, as long as you work with a reputable company. This means the following:
- They don’t guarantee approval. As we’ve mentioned throughout this article, companies should be upfront and realistic about the fact that they cannot offer 100% approval rates.
- They give you fair lending terms. For a payday loan, this means not charging you an amount that your future paycheck would not be able to cover. For no credit check loans involving collateral, this means fairly assessing the value of your car or other valuable item.
- They follow the law. Of course, stay away from any company that violates federal and state laws around these types of loans.
In addition, realize that these loans are considered high-risk loans because they have much higher interest rates than traditional personal installment loans. Always be sure you can repay the loan in full before taking one out.
How To Get a No Credit Check Loan
One of the best places to get a no credit check loan is at LendYou. They are an online payday loan marketplace, and have very high approval rates. Here’s how their process generally works:
- Make sure you meet the requirements. You must be at least 18 years old, have a checking or savings account, and a minimum monthly income of $1,000 to sign up for a LendYou account. If you’re struggling to establish a checking account, we recommend using a second chance bank.
- Sign up for LendYou. LendYou will ask you for some basic information when you sign up, including how much you’re looking to borrow. Signing up is entirely free.
- LendYou will match you with partner lenders. LendYou’s algorithms will immediately start matching you with potential lenders.
- Review the terms carefully. Any interested lenders will be able to reach out to you directly to discuss loan terms. If they extend you a loan offer, be sure to read the loan contract thoroughly.
- Accept or decline the offer. If you’re absolutely sure that you can repay the loan on time, you can go ahead and accept the offer. You should then get your funds within one business day. You can also decline the offer, and LendYou will continue to find other lenders for you.
Because LendYou can potentially connect you with hundreds of lenders, LendYou clients often see higher approval rates. You could get a no credit check payday loan as well. To learn more, refer to our LendYou complete review.
How To Improve Your Chances of Getting a No Credit Check Loan
Here are some proven ways to improve your chances of getting approved for a no credit check loan.
- Have all your documents ready. Not having the necessary paperwork is a major reason why many applicants get rejected. So before jumping into any applications, take some time to gather any documents that you’ll need. No credit check lenders typically will want to see your government issued ID, proof of income, and proof of residency to determine eligibility. If you’re applying for a title loan, you should also have a copy of your car title, along with car insurance information.
- Ask for less cash. If you can, don’t ask for too much cash. No credit check lenders may see you as higher risk and reject you as a result. We recommend only applying for the minimum amount that you need anyway, since interest rates on these loans are typically very high.
- Use LendYou. As we discussed in the previous section, LendYou is a platform that can connect you with hundreds of no credit check payday loan lenders. This means that you have more chances of finding a good loan.
Does a No Credit Check Loan Affect My Credit Score?
When you apply, a no credit check loan will not negatively affect your credit score. The reason is simple: lenders won’t pull your credit, so you won’t have to worry about a hard inquiry lowering your score.
However, some no credit check loans do report payments to the three credit bureaus. This means that if you diligently repay your loan, this could add positive credit history to your report and increase your score.
At the same time, if you are unable to repay the loan, this could further hurt your credit score. For example, failing to repay a title loan could stay on your credit report for up to seven years.
When Should I Get a No Credit Check Loan?
No credit check loans are convenient, but expensive. Because of this, you only want to consider one when you’re in a true financial emergency.
Good reasons to take out an emergency loan include paying for rent, utilities, or a sudden medical bill. We never recommend using a no credit check loan to fund unnecessary expenses such as a gift or a vacation.
Always ask yourself whether or not you can afford to repay a loan before taking one out. In the loan contract, companies should be very transparent with regards to how much you owe and when. Only accept the loan if you’re fully comfortable with the terms.
Also, you should only consider a no credit check loan because you’ve been denied a traditional installment loan from a bank. Thus, a longer term solution would be to focus on fixing your credit so you have more loan options available in the future. Consider reading our Ultimate Review Guide for Credit Saint for more information on credit repair.
Conclusion and Next Steps
No credit check loans with guaranteed approval do not exist. However, there are many things you can do to maximize your odds of getting one, including having all your documents ready, requesting a reasonable amount of money, and using LendYou.
The final point bears repeating, since LendYou has successfully helped many clients find a payday loan to cover for a financial emergency. You can sign up with LendYou today and they’ll instantly get to work by matching you with a suitable lender.
When doing research, Credit Help Info relies on credible and authoritative sites. These research sources are provided so that you can see exactly where we get our information.
About the Author
Chris Morgan is a credit expert and founder of Credit Help Info. He has been featured in Addition Financial, GOBankingRates, MSN Money, Yahoo Finance, and many other publications. He has read hundreds of books and resources on finance and the credit industry. Because he did this, you don’t have to. As a school teacher for over 20 years, Chris enjoys taking complicated material and breaking it down into manageable information that’s easy to understand.