What to know about no-credit-check loans
Here are a few things to know before applying for a no-credit-check loan.
Other qualification criteria: No-credit-check lenders may not have credit score requirements, ultimate guide but some have requirements around income and U.S. citizenship or residency. Those that do a soft credit check may require that you have some credit history.
Credit reporting: Check if the lender reports payments to the three major credit bureaus. You can usually find this information on the lender’s website or by contacting customer service. When loan payments are reported to the bureaus, on-time payments build your credit score and missed payments hurt it. This is especially important to note with high-interest lenders whose expensive loans may be difficult to repay.
Collections: If you fail to repay a no-credit-check loan, high-interest lenders and some buy now, pay later apps can send you to collections. This usually happens at some point after 120 to 180 days of nonpayment. Debt collectors can contact you via phone, mail, email or text. Most cash advance apps do not send unpaid advances to collections.