If you are living with poor credit, it can be challenging to get a loan. You have probably already come face to face with this reality. Maybe you have tried to apply for a loan and been flat-out rejected. Maybe you have been offered subprime interest rates that would make it almost impossible to pay back the loan in the first place. 

The credit system in America has many faults, and discrimination against people who have less-than-perfect credit scores is a major one. Those who have new credit or even limited credit history may also struggle to borrow money. This can feel like a defeating cycle: People often need to borrow money in order to invest in big ideas and make money. But if you have not yet built up your credit, you do not have the opportunity to do so. 

Here is the good news: There are ways to get a personal loan without a credit check. Today, we are going to take a closer look at how your credit score impacts your loan eligibility. Plus, we will highlight four types of loans that allow you to borrow money with no credit check. Let’s dive in!

Is My Credit Score Good Enough for a Personal Loan? 

When you apply for a traditional personal loan (i.e., through a bank), you will likely have to submit to a credit check. This helps the lender determine how likely you are to pay back the money that you borrow. Of course, there are many reasons why someone might have a low credit score, and many people with lower credit scores successfully pay off debt. 

That said, having a low credit score can lead to you getting denied on a loan application. Alternatively, you may be offered a loan with unfavorable interest rates. People who have higher credit scores are typically able to get better interest rates. For reference, the average rate for a personal loan is about 12.44%. 

So, what kind of loan can you get with your credit score? There are a few different companies out there that dominate credit scoring, but FICO and VantageScore are the two dominating providers. Both use a scale ranging from 300 to 850, but they have slightly different ranges and range cutoffs. Because of those differences, we have used estimated ranges… 

Poor Credit: From 300 to the mid 500s

If you have poor credit, you might be denied when you apply to receive a personal loan. If you are offered a loan agreement, you will probably face low maximum loan amounts and high interest rates. NerdWallet found the average rate offered to borrowers with a credit score below 629 was 21.65%. Collateral lending is typically a better option for people with poor credit scores, as you can borrow against valuable items you already own with higher loan amounts and lower interest rates.

Good Credit: From the mid 600s to the high 700s

If you have good credit, you will likely be approved for a personal loan with average interest rates. You have demonstrated an ability to pay back debt on time, but there are still some factors holding back your overall credit score. Maybe you have too many (or not enough) lines of credit or have only had a credit card for a few years. You can still borrow money from a bank, but you will see even more attractive terms when you choose collateral lending.

Excellent Credit: High 700s and above

You will likely be approved to get a traditional personal loan from a bank with a relatively low interest rate. NerdWallet found the average rate offered to borrowers with a credit score above 721 was 11.8%, which is below the overall personal loan average. Still, it is worth shopping around to explore other borrowing options! At AMETA Finance Group, for example, you can take out a collateral loan and borrow against luxury watches or jewelry with rates around 4%. 

4 Types of Loans Without a Credit Check

When it comes to collateral loans, your credit score does not matter. You heard that right: Your credit score does not matter. That is because collateral lending reduces risk for the lender. You are leveraging a high-end asset such as an elite wristwatch or piece of heirloom jewelry. If you fail to pay back the loan, the lender can sell that asset in order to recoup their losses. This means that the lender is less likely to lose money on a loan, and it translates to better perks for the borrower (that is you).

With that in mind, here are a few different types of collateral loans that are perfect for anyone seeking a loan without a credit check.

#3: Home Equity Loans

One of the most well-known forms of collateral lending, a home equity loan involves borrowing against the equity you have accrued in your house. There are a couple of obvious limitations, however. First off, you need to own a home – and not one that you bought just last year. You will likely need to have been paying into a mortgage for 10 years or so before you become eligible for a meaningful home equity loan. Additionally, home equity loans are tied to the equity you have in your property, not its full value (until your mortgage is fully paid off, the bank still owns a portion of your home). That means that your loan amount will probably be capped at a few hundred thousand dollars. That is much more than a bank-sponsored personal loan, but often less than you could access through luxury watch loans or jewelry loans. 

#4: Fine Art Loans

If you own a piece of original fine art, you may be able to borrow against that valuable asset. However, borrowing against art can be a bit more complicated than borrowing against watches or jewelry. That is because the value of a piece of art is quite subjective. It may take a while for the art to be verified and appraised, meaning it can extend the time it takes to get your money.

Ditch the Credit Checks With AMETA Finance Group

When you take out a high-end watch or jewelry loan with our team at AMETA Finance Group, you can wave goodbye to the indignities of credit checks. Say au revoir to suffering through embarrassing conversations with loan officers, getting rejected from financing opportunities, and being looked down upon by haughty lending companies. Instead, you will enjoy a seamless, welcoming experience that puts your needs first. 

At AMETA, we lend against a variety of elite watch brands. Think classic favorites such as Rolex, Audemars Piguet, Richard Mille, Patek Philippe, F.P. Journe, and Lange & Söhne. We also lend against high-end jewelry made with precious metals and prestigious gemstones. 

Whether you are looking to get a diamond ring loan or borrow against a vintage Rolex, AMETA Finance Group is the place to turn for reliable and reputable collateral loans. Submit this short form to get a preliminary estimate of your piece’s value, and discover endless possibilities.