There can be plenty of situations in life when you need money, for personal or professional reasons, and your only option is getting a loan. The financial institutions today are offering all kinds of loans to help people procure sufficient funds. While the loans are given based on many different factors, your credit score can be a significant deciding factor. If you have a bad credit score or no history, getting a loan may become difficult, but it is certainly not impossible.

If you want a loan without a credit check, you’re in the right place. Read on to know more about procuring a no credit check loan.

What is a credit score?


A credit score is nothing but the numeric expression of the creditworthiness of an individual. The score is primarily calculated from the financial history of the person. It serves as an important metric for banks, financial institutions, and other lenders to evaluate the risk they will be undertaking by lending them money. The higher the credit score of an individual, the lower the risk of giving money to them.

It is based on your credit history: number of open accounts, total debt, repayment history, and other factors. A majority of financial institutions use the FICO scoring system to calculate the credit score.

How can you get a no credit check loan?


Whenever you apply for a loan, the financial institution will assess your worthiness through your credit score. If the credit score is extremely low or you don’t have sufficient history for a credit score, you can still get a loan. According to, here are a few ways to get no credit check loans via direct lenders:

1. Get a loan for a lower amount:

There is a series of risks and apprehensions involved for the lender when it comes to lending money. They are cautious about the safe return of the amount lent, and a good credit history helps them have faith in the borrower. In case you don’t have a credit history to speak for your creditworthiness, the risk is significantly high for the lender.

You can boost your chance of getting a loan without any thorough credit check if you opt for a personal loan for a lower amount. It can act as a catalyst in reducing the risk substantially and helping improve your chances of getting a loan.

 2. Leverage your income:


Apart from the credit check, another deciding factor for getting a loan is the borrower’s income.  If the borrower is employed in a reputed company and earns a good salary each month, not much is required to prove their creditworthiness. It depicts that the borrower is financially stable, making a sufficient amount each month, and can pay back the loan amount and interest.

You can show your income statements to get a no credit check loan from a financial institution. They might ask you to provide a few documents as proof of your income, which typically includes your tax returns for the last two financial years. You can also provide your employment history and payslips, or even bank statements to demonstrate your income.

3. Get a collateral-based loan:

Many financial institutions also offer loans based on collateral. If you show collateral, it eliminates the requirement of having to show your credit score. Collateral can be an asset like gold, vehicle, real estate, fixed deposit, or even shares. You can pledge any asset you possess as a guarantee to the lender and easily get a loan.

The asset guarantees your economic potential in paying off the loan. In case you aren’t able to repay the loan amount, the lender may acquire the valuable and sell it off to recover their amount. Since it will reduce the lender’s risk, you can also get a loan for large-amount if you have an asset that you can pledge as collateral.

4. Make your case NA in credit score:


In case you don’t have a credit history that can be checked for the loan purposes, you can ask the lender to write NA or Not Applicable on the credit report. It indicates that you have zero credit history in the last 36 months. It will help you acquire a personal loan, but the interest rate will certainly be higher than the market standards.

You need not fret about writing NA on your credit report. It will not hurt your credit score. Rather, taking a loan with NA and then repaying it on time will improve your credit score and help you in getting credit in the future. The only downside here is the exorbitant interest rate you will have to pay on the initial loan.

5. Leverage someone else’s credit history:

If you don’t have sufficient or credible credit history, but someone in your family or friends do, they can help you in getting a loan. You can leverage their credit score for a loan by getting them as a cosigner. If you are unaware of this concept, a cosigner is someone who will apply for the loan with you, sign on the document, and agree to repay the loan on your behalf if you default in payment. For instance, you can use your spouse’s credit history to your advantage and get a loan.

Besides that, another way of improving your creditworthiness is by adding your name to other individual’s credit cards. You will get a new credit card under the same account, and it will be reflected as your credit report as well.

Final thoughts


Life is usually an expected journey that throws curveballs when you least expect it. There can be plenty of unprecedented situations where you need funds but don’t have enough saved up. Here, you can easily get a loan from a financial institution without having to worry about a credit check. Whether you have a bad credit score or a negligible credit history, you can still get a loan through the various methods given above. Visit a bank or financial institution and get a loan today!