There are no loans that come with guaranteed approval. Loans that don't require a credit check are impossible as well.
Every lender needs some kind of reassurance that a borrower will be able to pay off the loan on time and in full. If a lender does not perform any kind of credit check, it should be concluded that the lender isn't trustworthy and will most likely cause more problems for you down the road.
Reasons Why Legit Lenders Check Your Credit
Lenders look at your credit score to determine how much of a risk you will be to them. Checking your credit will help them analyze your past financial behaviors and judge your ability to repay the loan.
Actually, most lenders do not always expect to see a perfect credit record. However, a history of late payments, collections, or numerous credit queries can raise red flags and prevent you from obtaining the best rates and terms, or even being accepted.
Be Aware of No Credit Check Loans
As mentioned, there are no such loans as no credit check loans. Lenders that don't perform credit checks are not reliable and they can extort you in many ways. They may sneak many kinds of hidden fees into your loan agreement and once signed, you have to pay them in full.
Lenders like these use loan rollovers to extort the borrower. A rollover means getting an extension on the loan term which might seem really enticing to the borrower but for every month that the loan is extended, the lender takes a fee, along with the increased interest of each extended month.
If a lender doesn't perform a credit check, it means that they are not concerned about late payments. This shows that they make money off of charging fees from borrowers for late payments. As such, it is advised for all borrowers to refrain from getting attracted by impossible loan offers that give guaranteed approval without a credit check.