You may be able to find places that advertise medical loans with no credit check, but none of them are very good options. They include payday loans, auto title loans, pawn shop loans and borrowing from friends or relatives.
Payday loans. These types of loans often have no credit check and let you borrow a small amount of money (usually $500 or less) against your next paycheck. But they are not big enough to serve as medical loans most of the time, and they charge huge fees that are often equal to a 400% APR.
Auto title loans: Some lenders let you borrow a portion of the value of your car, using your car’s title as collateral, and may not do a credit check. But these loans are meant for short periods of time, usually 15-30 days, and they charge fees that can be as much as a quarter of the amount you take out.
Pawn shop loans: You can “pawn” an item for 20% - 60% of its value, then reclaim the pawned item by paying back the amount you got plus 2% - 25% in interest. If you don’t reclaim the item within a certain amount of time, the pawn shop can sell it.
Borrowing from family/friends: Your family and friends don’t have the power to do a hard pull of your credit, but can still lend you money. That means drawing up a binding contract yourself and figuring out how to pay the other person back.
There are online lenders that advertise loans with no credit check specifically for medical use. But many of these sites don’t openly disclose their rates and fees online, which is a big red flag. There are also lots of scams that masquerade as no credit check loans. Don’t even consider lenders that don’t have a secure website or that ask for any kind of payment up front.
Instead of getting a medical loan with no credit check, consider personal loan providers that work with people who have bad credit, such as LendingPoint and Avant. LendingPoint’s minimum credit score is 585, and Avant’s minimum score is reportedly 600.
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