No credit check loans are ideal options for borrowers with no existing credit or bad credit history. The borrower’s credit score in the Philippines will range from 300 to 850, with 850 as the highest credit report. The higher the credit score is, the better your chances of getting approved for payday loans and other financial productions.
Top Online Loan Offers in the Philippines
Loan up to ₱ 25 000
New clients get a 100% commission discountVisit
But if you have a bad credit score can pose problems once you decide to take out a loan. But it’s not the end of the road for the borrower since secured, and co-signed laws offer a more convenient way of getting instant cash. Typically, lenders that provide these types of loans do not conduct credit history checking, ask for bank accounts or check the credit report.
Some financial institutions, like banks, require a high credit score and bank account to qualify for their loan products. And, even if the bank sees that you have a high credit score, there is still a chance that your loan application will get rejected. But, you can be granted a personal loan regardless of your credit history for loans requiring no credit check.
In this guide, we have shortlisted a few lenders where you can avail of a no credit check loan.
Bank Loan vs. No Credit Check Loan
A no credit check loan applies both to borrowers with poor credit scores and those who do not have a loan at all. This loan is best for borrowers who do not have an existing loan but happen to run into an emergency. If you are borrowing for the first time, you have a higher chance of getting approved with no credit loan instead of a bank loan.
Applying for a loan can be tricky for the first-timer. For a start, a bank loan requires several documents to establish eligibility. Moreover, they have strict requirements to meet. In addition, bank loan processing may also take several days to complete. And then there are the worries that come with each loan application- will I get approved or not?
With a no credit check loan, the chances of getting approved are higher. The lender does not conduct checking of current bad credit history. Or if there is a policy of conducting background checks, these are lighter and simpler. This type of loan also promises a quicker turnaround time in application and release of proceeds. You will receive cash into your account in just a minimal waiting period. There’s no need to worry about strict requirements and other checks. Whether you intend to use it for emergencies, purchases, or debt consolidation, there are always better options for you.
How can I get a no-credit-check cash loan?
There are several ways to get a loan without worrying about how high your credit score is. However, there’s no guarantee that you will receive immediate loan approval. But the chances of getting approved are higher than in banks.
Among the financial institutions offering this type of loan are cooperatives, private lending agencies, and 5-6 lenders. Lenders have different policies and procedures throughout the application processing and releasing. Please note that they may sometimes require collateral for you to apply for payday loans. In a secured loan, collateral is in place to protect the financial stake of lenders in case the borrower fails to repay the loan.
You need first to become a member of a cooperative to get approved for a loan. Borrowings made in a cooperative should comply with covenants, agreements, and commitments. Some of the most popular cooperatives in the Philippines are Gubat St. Anthony Cooperative (GSAC) and Baao Parish Multi-Purpose Cooperative. For loans secured by collateral, a cooperative may not require a co-maker.
But, for unsecured loans, co-makers are necessary. Cooperatives require members to have shared capital and savings. They also set loan limits for every borrower depending on their income capacity. Unlike online loans, you need to go to the office to apply for a loan with GSAC and other cooperatives.
Gubat St. Anthony Cooperative (GSAC)
Anyone can be a member of this cooperative. Once you have become a member and have a stable source of income, you can be eligible for loan approval. However, when you apply for a loan with GSAC, you must surrender your payroll ATM card as collateral. To apply for payday loans, fill out the application form, submit documentary requirements, and wait for the release schedule. A representative of the cooperative may visit your workplace or residence.
Once the loan is approved and released, the cooperative notifies the client of their monthly amortization. The client will also receive a passbook intended for savings and loan accounts. It is ideal to allow borrowers to monitor loan balances and savings regularly. When you get a bank loan, you are not obliged to have savings. It makes a cooperative a better choice as you also get other benefits like yearly dividends.
Baao Parish Multi-Purpose Cooperative.
Baao Parish Multi-Purpose Cooperative welcomes new members and allows them to avail of no credit check loans. Loan processing, loan amount, and repayment terms may vary depending on the chosen and credit loans.
As a regional cooperative, Baao Cooperative offers a wide range of loan products. For example, you can choose salary, microfinance, emergency, or calamity loans. If you apply for a salary loan, you’ll need your payslip and valid identification. Business owners, on the other hand, may file their business permits. Baao Cooperative also values its borrowers by giving an unsecured loan through a character loan. This type of loan is for borrowers with integrity and reputation. You can be eligible for this privilege if you are an excellent payor. In terms of amortization, cooperatives offer monthly repayment terms.
Private lending agencies
Private lenders cover all types of no-credit-check loans. You can avail of instant cash, payday, or emergency loans. This loan type offers quick approval while having minimal requirements compared to banks. You can use your cellphone and apply for a loan. To apply for a loan from a private lending agency, first, complete the loan application form. Usually, private lenders make application forms available online for faster processing.
Private lending agencies typically request valid identification cards and other income documents. The process is easy, and the approval may only take a few hours. The only downside with this type of loan is the higher interest rate your loan may incur. The interest rates are relatively higher compared to bank loans.
One of the fastest ways to get cash without a credit check is to avail from 5-6 lenders. Whether you are a new borrower or an existing client, your chances of getting approved by 5-6 lenders are higher. However, the interest rates with this type of lender are also higher, payable in a shorter period. For example, if you get a loan of Php 3,000.00, you will repay Php 3,600 in total. Repayment terms usually range from 7 days to 1 month.
The 5-6 lending scheme has been popular in the Philippines, especially among micro and small business owners. Instead of conducting credit checks, 5-6 lenders often require guarantors before they release funds. However, you must ensure that the guarantor has a good credit score.
Car Collateral financial institutions.
A car collateral loan is a secured loan type offered by financial institutions. Here, you will only need to present the official receipt/certificate of registration (OR/CR). The loan amount is often based on the current value of your car. There’s no credit check if you are the registered owner of the collateral. An institution representative may conduct a physical visit on the collateral to secure its physical condition. You don’t have to worry about your credit score as they will not be looking at it. Car collateral You can keep using your car while benefiting from low-interest rates for your loan.
Meanwhile, strict lenders may also require borrowers to surrender the car collateral. But this may depend on the policy and conditions of the financial institution. Lenders have the right to repossess the car collateral if the borrower fails to repay the loan in full. Since a car collateral loan is an asset-based loan, they take the asset and store it. The asset is returned to the borrower once the loan is paid.
Get Approved for a Loan Even with Poor Credit
In difficult times, there are several ways you can survive and settle financial burdens. Besides borrowing money from family or relatives, borrowing money has been made easier. More financial institutions are offering personal loans even for borrowers with poor credit scores. A no credit check loan appeals much to borrowers worried about their credit standing. However, these loans are often predatory, especially the 5-6 lenders. There is always a risk associated with a no-credit-check loan. It’s due to the high-interest rates, fees, and shorter repayment terms. These are easy ways, but they can put you at risk of debt if not correctly managed.
Consider a few factors to find the best lenders for no credit check loans. These include the lender’s reputation, current interest rates, and repayment terms. Educating yourself about these loans is the key to the right borrowing decision.