Is It Legal to Have No Credit Check Loans in the US?

When you take out a personal loan from a bank or credit union, the lending process usually involves them conducting a credit check on your report. If your credit score turns out to be poor, there is often a high chance that you will be unable to secure approval. 

It is in such situations that no credit check loans can often come in handy and while such a personal loan can sound untrustworthy or even elusive, these types of loans do exist. In fact, you can find some best choice for no credit check loans on WeLoans.

So, for those unfamiliar with them and whether they are legal or not, we’re going to quickly break down what these loans are, how they work and even how to shop for them.

What Are No Credit Check Loans? Are They Legal?

For the most part, no credit check loans are legal and they are also work in the same way as traditional personal loans. The only main difference is that they do not involve a lender conducting a hard credit check to approve your loan application. 

Instead, lenders will review your loan application based on other factors such as your income level, employment status, bank account history and sometimes, the collateral that you are putting up. As a result, these types of loans are well-suited to loan applicants who have a spotty repayment history or subprime credit but are in need of urgent funding.

You should also keep in mind that while no credit check loans don’t typically involve lenders conducting a hard credit pull, they are very likely to perform a soft credit check to review your credit history. The added benefit of this is that a soft credit check will not negatively impact your credit rating.

Also, if you would like to learn further about WeLoans so that you can access to such loans, it is important to remember that no credit check loans do not necessarily guarantee approval. On top of that, there are a number of important factors to consider when borrowing these types of loans:

  • Higher interest rates: Most no credit check lenders will typically charge significantly higher interest rates for these types of loans, due to the added risk that comes with approving borrowers with a less-than-stellar credit score.
  • Smaller Loan Limits: No credit check loans tend to come with lower loan limits compared to personal loans acquired from banks or credit unions. This is also because of the added risk of default that comes with lenders giving money to borrowers with a less-than-ideal credit score.
  • Shorter Repayment Periods: These types of loans also have shorter repayment periods and the problem with this is that it can often make it harder to pay back the loan, as the monthly repayments end up being higher than average.

What Are The Different Types of No Credit Check Loans?

There are a number of loans that don’t require you to go through a credit check to secure approval. In fact, if you use WeLoans, their extensive network of no credit check lenders will provide you with a wide variety of options to choose from such as:

Payday loans

Payday loans are a form of short-term lending that is meant to act as a small cash advance until your next paycheck arrives. As a result, they don’t usually exceed amounts higher than $1,000, which makes them best-suited for dealing with small financial emergencies like an urgent car repair, a sudden medical bill, etc.

Bad Credit Loans

Bad credit loans are specifically designed for borrowers with a poor to no credit rating, which is why they have extremely lax eligibility requirements. They also allow borrowers to access higher loan limits than payday loans, which can be repaid over time via fixed installments. These loans also don’t typically require you to put up any collateral, either.

Title Loans

Title loans essentially require you to put up your vehicle as collateral to get approved for funding. Since they are secured, these types of loans don’t require you to have a good credit score and tend to come with high loan amounts. However, if you were to default the lender will be able to repossess your car to recoup their money.

How to Get a No Credit Check Loan?

Loans with no credit check don’t come with many eligibility requirements, so it is very to qualify for funding. On top of that, these loans can be easily applied for online, so you don’t even need to leave the comfort of your home to secure the cash that you need.

Step 1: The first step to securing a no credit check loan is to head over to WeLoans and fill out the online pre-approval form. It will require you to fill out details such as your name, address, social security number, credit score, bank account number, monthly income, employment status, etc. Once submitted, your loan request will be reviewed and within a few minutes, you can expect a decision.

Step 2: Since these loans don’t require a hard credit check, you don’t have to worry about your application showing up on your credit report. If you are approved, you will be presented with a number of offers from multiple lenders that you will need to take the time to compare until you find the best possible offer. Make sure that pay close attention to the loan rates, terms and fees, as well as any potential fees that you may incur.

Step 3: Once you select a lender and their offer, you will need to e-sign the loan agreement, at which point, the money will be processed and transferred to your checking account as soon as the next business day. 

Alternative Options To No Credit Check Loans

If you decide that a no credit check personal loan is not ideal for you, then there are still a few other alternative options that you can consider.

Friend or Family Member

While it can often be an uncomfortable experience to borrow money from friends and family, this can be a viable alternative to consider if you are unable to secure a loan from a bank and you don’t want to borrow a no credit check loan. The only risk is that failing to repay the loan can potentially sour the relationship, so make sure to only use this option if you are confident that you can repay the loan.

0% APR Credit Card

You can apply for a 0% APR credit card that allows you to make interest-free payments for a set period of time, which is usually for about 12 – 18 months. This is a good option if you want to make small or large purchases and save yourself money in interest. However, do keep in mind that failure to pay off the entire card balance by the time the intro period ends will result in being charged interest on whatever amount is left.


Before you take out any type of no credit check loan, you should first make sure that you have no chance of securing a regular personal loan from a bank or credit union. If you are confident that your credit score will not be able to get you approved, you can explore your options via WeLoans.

However, be careful when choosing a loan offer because you don’t want to take on a loan that you cannot afford, so always take your time to carefully compare and consider your options.

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