Do No-Credit-Check Personal Loans Show Up on Your Credit Report?
Getting a loan with bad credit can be hard. One option that many borrowers consider is applying for a no credit check loan, which can help you qualify if you’ve been turned down by other lenders because of your credit.
But will a no credit check loan show up on your credit report?
Even though most no credit check loans won’t appear on your credit report when you apply, there are some cases in which they might later on. Let’s explore the most common types of no credit check loans, how they work and if they have an effect on your credit report.
How Does a No Credit Check Loan Work?
When you apply for no credit check loans, lenders won’t check your FICO score or run a hard credit check. However, they will usually want to verify your identity and income, and they may want proof of collateral. They may also run a soft credit check, which is not the same as a hard credit inquiry and will not appear on your credit report.
The main benefit of no credit check loans is they can help you qualify if you’ve been turned down by other lenders because of your credit. However, they almost always come with very high interest rates. If you’re considering a no credit check loan, make sure to explore alternative options and carefully review the terms and conditions before deciding if it’s the right choice for you.
Do No Credit Check Loans Show Up on Your Credit Report When You Apply?
When you apply for a no credit check loan it will not appear on your credit report. This is because the lenders either don’t check your credit or they only perform a soft credit check. This means that the credit bureaus will not have any record of someone checking your credit — even if they do a soft credit pull.
When applying for a more traditional loan, lenders will typically perform a hard credit check. These kinds of checks give them access to your full credit report and will be added to it as official inquiries. Hard credit checks can affect your FICO score, especially if too many are made over a short period of time.
Do No Credit Check Loans Show Up on Your Credit Report After You’re Approved?
Whether or not a no credit check loan appears on your credit report depends on if the lender reports to the credit bureaus. These bureaus receive data from lenders that can include your payment history, amount owed and any delinquencies or defaults.
Many lenders who offer no credit check loans do not report to the credit bureaus. This can be good because it means that if you miss payments, the lender won’t send information about them to the bureau. However, it also means that you won’t receive credit for making on-time payments. On-time payments are one of the best ways to build a positive credit history and potentially boost your credit score.
Beware of Defaults
Even if your lender doesn’t report to the credit bureaus, you’ll need to stay on top of your payments. If you miss payments, the lender can send your debt to a collection agency — which will almost always show up on your report. Debt that’s been sent to collections can have a serious negative impact on your score.
What Are Some Types of No Credit Check Loans?
There are a few different types of no credit check loans. They have different approval requirements and different terms and conditions after approval. Be sure to carefully consider each type of loan before deciding if any are the right option.
Payday Loans
Payday lenders do not usually run any credit checks and don’t require collateral. Normally the only requirements are to verify your identity and provide proof of income.
If approved, you’ll typically need to write a post-dated check for the full amount you owe — this includes any interest and fees, which can be pricey. The lender will cash the check when your term is up. This is often in just a few weeks, or as the name suggests, on your next payday.
Title Loan
When getting a title loan, you sign over the title of your car to the lender. With the car backing the loan and acting as collateral, these lenders don’t typically run any kind of credit checks.
You’ll pay the loan back over a set period of time, usually about 30 days. If you default, the lender will take possession of your car to cover what you owe.
Bad Credit Personal Installment Loans
These are personal loans designed for borrowers with bad or no credit. The lender will usually run a “soft” credit check to make their decision. These loans are designed to look beyond the numbers. The soft credit check won’t affect your FICO score or appear on your credit report.
Will a Loan From CashNetUSA Show Up on My Credit Report?
Loans from CashNetUSA, including installment loans and lines of credit, will not appear on your credit report. When determining approval, we run a soft credit check and look at alternative financial information. Once you’re approved we do not report to any of the major credit bureaus, so it won’t affect your FICO score.
About Baylee Alerding
Baylee Alerding, CFEI, is a copywriter specializing in finance. Before joining Enova in 2022, she worked for a financial planning firm in Northern Virginia, where she regularly contributed articles on financial literacy, personal finance and other monetary trends. She graduated from Virginia Commonwealth University with a bachelor's degree in communications and received her certification for financial education instruction from the National Financial Educators Council.
