When taking out a student loan, it is not uncommon for the lender or bank to want to do a credit check.
If you’re wondering, a credit check is an analysis of your financial activity: how much money you make, what loans you’ve taken out in the past, how long it took you to pay them back, etc. This is necessary for the lender to guarantee the risk of lending you money.
However, some people cannot guarantee a good credit check score. For example, if you are a student and have not worked for many years. Or you are in your first job and still earn little money.
What happens in these cases? And is it possible to find a good loan that does not require a credit check? The answer is yes, you may be able to find a lender that meets your needs, but you will still need to complete several requirements.
Today, we will discuss those requirements and all the possibilities you have to get some borrowed money without financial background that guarantees a satisfactory credit check.
Secured loans without a credit check
Usually, the loans you can apply for if you do not have a credit check are mini loans. If you cannot secure repayment of the loan without any financial problems, no lender will risk lending you large amounts of money.
Even though they are mini loans, they can help you a lot if you have some expenses you need to pay. Which financial institutions would provide you with a loan without a credit check? Let’s take a look at some of them!:
- One of your possibilities is CreditLoan.com. They put you in touch with lenders who don’t ask for any credit checks and who don’t care that you don’t have a high credit score. The loans are usually between $250 and $5,000, and the interest rates are quite high. This is because they are financially secure in case of non-payment.
- You can also use CashAdvance.com. They gives out loans ranging from $100 to $1,000, with fairly high-interest rates. They are flexible with repayment terms and accept people who do not have credit checks.
- Money Mutual is another place to go if you need to borrow money. They have the advantage that they will give you the money very quickly, in just 24 hours, if you meet all the requirements. You can only borrow a maximum of $5000, and the interest rates vary according to your financial situation.
As you can see, you have possibilities for borrowing if your financial situation is not ideal. You have to look hard and be aware of the disadvantages, such as high-interest rates.
On the other hand, you should also know what other requirements you may be asked to meet to get the loan granted and receive the money.
What other requirements can you be asked to meet for a loan?
As you can imagine, no lender will provide you with money if you don’t meet at least a few requirements. You may not have to verify your credit, but you will certainly have to provide some information.
What are these requirements that lenders that do not require a credit check ask for? Some of the following:
- Have a minimum income. Sometimes it will be through work, and other times, it will be enough if you are receiving unemployment benefits.
- Secondly, you must be of legal age, i.e., over 18 years old (sometimes over 21). You must also be a U.S. citizen or have a green card.
- Another essential requirement is to have a bank account and other documents such as a passport, a valid email address, and a telephone number where you can be contacted.
In short, no financial institution will lend you money without asking for anything in return. But you can certainly find possibilities to receive a secured loan without a credit check.
If you have more questions regarding student loans or would like to know under what conditions you can borrow certain loans, you can check our blog for information.