Originally posted on https://bonsaifinance.com/a-comprehensive-guide-to-loans-with-no-credit-check-for-students/
Students are in a rut. They spend long hours studying in college to create a better future. These long hours spent at school interferes with carrying a full-time job and a myriad of other financial responsibilities.
For basic necessities, such as paying rent and eating, many students turn to loans.
You have access to fast cash and you pay off the loan when you graduate college. Students only fight through one issue: since they haven’t worked, they haven’t built up enough credit to qualify for a loan.
Don’t worry — there are options other than loans with no credit check. Here’s how students can get approved for a loan.
Loans With No Credit Check: Do they exist?
Many lenders require a credit check to prove your credit trustworthiness. But there are lenders who don’t have the same standards.
There’s a good reason why: certain lenders are understanding of a short credit history. You have a low credit score because you haven’t had the chance to build credit.
Instead of looking at your credit history, lenders look at other facts. These include:
- Your employment
- Your bank statements
- Your current debt (car loan, student loan, credit card bills, etc.)
- Anything else you own (a house, car, etc.)
- Your taxes
If you’re also not up to par with the above standards, you have other options. Some lenders will even let you have a co-signer, such as a family member or a friend. Choose someone with a great credit score.
Your Loan Options
Now that you know what’s required, it’s time to start shopping for a loan. It’s easy to get overwhelmed with all of the loan options. But many of these loans don’t require a credit check during the application process.
Payday loans are popular among students. Say you have an emergency expense or don’t have enough money to cover necessities until your next payday. A payday loan gives you only the money covered by your next paycheck.
You’ll receive a decent amount of money and can easily pay off the loan.
Many loans require collateral or a reason to take out the loan. Some lenders may not think students have enough collateral for a loan approval. Proving you have a title to something, or own something, may provide enough collateral and trust.
What can you prove you own? Popular options include a house or a car. But you can also use a motorcycle, ATV, or even a boat.
These days, any student can get a personal loan online for next to nothing. These are also popular options because you can get your money in minutes.
You can get a personal loan from a bank, credit union, or an online lender. You pay the loan back between three and five years and the rates can range between 7% and 36% APR.
Students Have Loan Options
Students struggle to make ends meet for their education. If you need a quick financing option, there are alternatives to loans with no credit check options.
If you’re looking for an option other than no credit check loan, take a look at our loan options.