Can You Get A Personal Loan without a Hard Inquiry?
Can You Get A Personal Loan without a Hard Inquiry? The quick answer is yes with a soft credit pull. Although, you want to take the time to read below so you know what you’re getting into with a soft credit pull lenders. There is a reason why creditors want to make a hard inquiry on your credit report. Soft Credit lenders may mean a more expensive loan.
Getting a personal loan that doesn’t require a hard inquiry is possible, but it comes with pitfalls. It means having higher interest rates or with stricter terms. If you have a bad credit history, but you need to take small cash loans, getting a personal loan without a hard inquiry can be your last option.
When doing a credit check, your creditor will check your current credits, how you are managing or paying it, and your credit history.
What is a Personal Loan?
Taking a personal loan is borrowing a specific amount from a credit institution like a lending company, a bank, or a credit union. A personal loan can be used any way you want to. You can use a personal loan for medical expenses, for house renovation, to purchase a gadget or appliances, or to pay your consolidated debt. For your personal loan plans, here are some terms that you should be aware of:
This is the amount of money that you are borrowing. If you are borrowing $20 000, that is the principal amount. The interest of your loan will be based on the rate and the principal amount.
Personal loans come with interest. A personal loan without a hard inquiry comes with higher interest rates. A good creditor should discuss the interest to you in a way that you can understand it clearly.
Annual Percentage Rate
This will show you the total amount that you have to pay after the principal amount, the interest rate, among other fees.
The Term of Payments
This refers to the number of months or years for you to pay your personal loan.
Before getting approval on your personal loan, your creditor will have to do a background or credit check first. A credit check can be hard check or soft check.
What Is the Difference Between Hard and Soft Inquiries for a Personal Loan?
What is the difference between a hard and soft inquiry? When applying for fast payday loans, your creditor will check with the credit bureau to determine your credit score. Depending on the terms of your loan, your creditor can do hard or soft inquiry. For short term loans, getting a personal loan without a hard inquiry is easy. Before getting a fast payday or small cash loans, check if you are able to pay the amount in time.
What is a Hard Inquiry?
A creditor does a hard inquiry if your credit standing affects their decision. You will be a subject of hard inquiry if you are applying for a car loan or a credit card. Hard inquiries will appear on your credit report and it affects your credit scores. If you notice a hard inquiry on your record and you are not aware of it, you should contact the creditor and dispute their inquiry.
What is a Soft Inquiry?
A creditor does a soft inquiry if they are planning on giving you an offer or a pre-approved loan. Since it doesn’t mean that you are applying for new credit, this type of inquiry doesn’t affect your credit score. Creditors who offer personal cash loans and emergency loans do soft inquiry before approving a loan application.
What Information Does a Soft Credit Pull Show?
If you are needing emergency cash loans today but your credit history doesn’t look good at all, you should still apply for a loan. A bad credit rating doesn’t mean that your loan application will get rejected.
Going through a soft credit check is useful because it can help you assess your current credit standing. Do you want to know your chance of getting a car loan approval? You can do a soft check on yourself. Your soft check won’t affect your current credit score, so you can keep on checking it.
Keep an Eye Out for Soft Credit Pull Lenders
Before opting to have a payday loan with no hard check, you should consider the pros and cons first. Some creditors offer soft inquiry loan but these loans come with terms that are stricter as compared to other loans given to users with good credit standing.
What to Lookout For from No Hard Inquiry Personal Loan Lenders?
- High-interest rates
- Very short payment terms
- Origination fees are collected
If you applied for fast payday loans, make sure that you are dealing with a creditor that can help you make a wise financial decision. Your creditor must disclose the loan terms in a way that you can understand. They should also provide you with a cancellation policy in case you suddenly change your mind.
Payday Loans No Hard Credit Check
If you are planning to take a personal loan without a hard inquiry, chances are you are having some emergency needs. Taking small cash loans does have disadvantages like higher interest rates and shorter payment terms so if you will take a payday loan, take it on these situations:
- When you have emergency needs
- You have an investment prospect with a high chance of good ROI
- You have means to pay it in the future
Payday loans are short term loans. It means you have to pay your credit within a few weeks or once your paycheck comes in hence the lender doesn’t need to do a hard credit inquiry. To get a payday loan, you find a payday loan creditor, go to their office, fill out some forms, show and submit your proof of income or bank statement, and wait for your loan approval.
Some payday loans can process your application online and your credited amount is transferred to your bank account upon approval. As they only do soft credit inquiry, taking a loan from them won’t affect your credit score.
Limit the Number of Credit Applications
Why would you need to limit your credit applications? Every time you apply for a credit, your creditor will check your credit applications in the past. If you have too many applications within a few months, it can be viewed as a desperate need for funds.
In addition, if you have multiple credit applications, your creditor might decide to lend you and decline your personal application. If you have a number of declined credit applications in the past, it will make you a high-risk customer.
This is not an issue though if you are applying for a personal loan without a hard inquiry. In this type of loan, your creditor wouldn’t mind your current credit standing, as long as you agree with their loan terms.
With the advent of online lending services, taking a personal loan without a hard inquiry is now much easier. Even if you have a bad credit standing, you can take emergency cash loans with bad credit anytime, provided that you have the means to pay it like a regular income from your regular job.
Although there are disadvantages of taking a personal loan without a hard inquiry, it comes with advantages as well. If you find yourself in an emergency situation, you can take emergency cash loans and make things meet until your next payday.
For a personal loan that doesn’t require a hard credit check, you can check online. Make sure to deal with legit online lenders or lenders that are members of the online lender alliance organization as this group follow rules and guidelines before processing personal cash loans.
Brandy Woodfolk is an educator, home business owner, project manager, and lifelong learner. After a less than stellar financial upbringing, Brandy dedicated her schooling and independent studies to financial literacy. She quickly became the go-to among family, friends, and acquaintances for everything finance. Her inner circle loves to joke that she is an expert at “budgeting to the penny”. Brandy dedicates a large portion of her time to teaching parents how to succeed financially without sacrificing time with their little ones. She also teaches classes to homeschooled teenagers about finances and other life skills they need to succeed as adults.
Brandy writes about smart money management and wealth building in simple and relatable ways so all who wish to can understand the world of finance.