Don't waste your time. Get a loan online.
Very Poor Credit Loans are expensive and can trap you in a cycle of debt. Consider other loan options and resources.
No matter how badly you require cash in emergency, think twice or even trice before getting a no-credit-check loan. for scammers who pretend to be lender often uses such language offering Very Poor Credit Loans Why? Because they’re potentially as predatory as payday loans or car-title loans and can trap you in a cycle of debt for years.
These loans — also known as no-credit-check installment loans — come with annual percentage rates reaching upwards of 400% in some cases, far above rates you’ll find at credit unions or with online lenders, two alternative options when you require cash in emergency.
What’s wrong with no-credit-check loans?
Consider an example: If a lender charges a 400% APR on a two-year, $2,000 loan, you’ll pay $667 monthly to pay it off. That’s more than five times — $549 in dollar terms — than the $118 you’d pay monthly at the highest APR many personal loan lenders offer, which is 36%.
Don't waste your time. Get a loan online.
Alternatives to no-credit-check very poor credit loans
If you need fast cash, you may be able to find alternatives to no-credit-check loans by talking to credit counselors, religious organizations and community nonprofits. Here are more options:
CREDIT UNIONS
Even if your credit is poor, your local credit union may be worth a shot.
Most credit unions offer small-dollar loans of $500 and above, and they are often willing to work with you to make the payments affordable. Many also have starter credit cards or loans to help you build a credit history. The interest rate charged by a federal credit union is capped at 18%.
PAYDAY ALTERNATIVE LOANS
Known as PALs, these credit union-issued loans help small-dollar borrowers avoid the debt trap created by traditional payday loans.
ONLINE LENDERS
Lenders like OneMain and Avant consider borrowers with poor credit, even with scores below 600. OneMain has higher rates but provides faster access to cash, while Avant is a good option for debt consolidation.
Other lenders like LendingPoint and Upstart consider factors apart from credit score, such as employment status and income. However, watch for high fees that drive up costs.
Lastly, lenders like Oportun and Capital Good Fund say they don’t require you have a credit score to apply, but if you do have credit they’ll review it. These lenders rely on things like bank account transactions and paystubs to gauge whether you make enough money and keep enough of it in your account to repay the loan.
