Direct personal loan lenders bad credit

Several online lenders advertise personal installment loans without credit check. The amount of these loans can vary, but generally does not exceed $ 5,000. And like payday loans and property titles, they tend to have an incredibly high APR; in the end, borrowing this money will be very expensive.

The conditions required for these loans are generally minimal: you must have a job, be over 18, be paid by direct deposit and have had your bank account for a few months. But with a 140% APR, what if you borrow $ 1,500 and make monthly payments over six months? You will end up paying around $ 2,200 for the loan.

The Federal Trade Commission warns against both and, and their website explains how these loans without credit check  work as well as some other ways to borrow money.

If you think a loan without long installment loan no credit check direct lenders might be right for you, there are a few things to consider before you apply and borrow money:

  • Is the website secure? Look for the padlock symbols and make sure the URL includes an "s" in "https" for added security. Do not ignore or replace browser warnings that appear.
  • Does the lender have a physical address? Even online businesses only are required to register a physical address. If they don't have one, it could be a red flag. If they have one, verify that their location exists and that it is not vacant land.
  • Is the lender registered in your state? The Federal Trade Commission requires lenders and loan brokers to register in the states in which they operate. Check to see if the lender is disclosing their listings on their website. You can also call your state's attorney general's office to verify the registration.
  • Are the costs clearly indicated? Ongoing charges include application, assessment, credit report, etc. Legitimate companies will disclose these fees up front. Make sure you get clear information about these fees before proceeding with your request.
  • Is the company a direct lender or a loan aggregator? A direct lender lends you money, while a loan aggregator acts as an intermediary; they collect your information and then seek it from lenders who may offer a loan. Even if you never submit an application, the aggregator can collect your data via keyloggers.
  • Do you have to make an initial payment or pay someone? Loans come with fees, but they are usually added to the cost of the loan or deducted from your payments. If you're asked to pay an upfront fee, make a prepayment, provide a prepaid debit card, wire, or pay an individual first, it's a red flag.

Even if you think your financial situation is in dire straits, you may want to explore other options before taking out a loan without a credit check. Each of our alternative options can help you build your credit score with responsible use.

Depending on your credit score and your financial needs, credit cards are an option that may be a better short-term solution. Offer a pre-qualification check to make sure your solution is viable in the first place.

Some options to consider include:

Keep in mind that bad credit credit cards have higher interest rates, up to 25%, but are a much better option than 400% payday loans.

Credit unions tend to have more lenient guidelines than commercial lenders; you may be able to get a smaller, short-term loan without predatory rates and fees, even with a lower credit score.

Credit unions generally offer the same financial services as commercial lenders. With credit unions, however, there may be certain membership restrictions. Membership can be defined by a specific employer, geographic area or group. You may need to be a member for a certain period of time before you can enjoy the benefits.