Are you in need of quick cash? Why not try a loan? Loans can be tremendously beneficial, especially in times of emergencies. The reasons that might trigger one to consider a personal loan include; unexpected financial costs, debt consolidations and maybe big purchases.
This might include buying a house, car, business buildings, etc. If you have ever lined up in the long queues of the banking halls to apply for a loan just for your request to be rejected because of a ‘bad credit’, I believe you feel my pain. Most loans are normally approved based on one’s creditworthiness i.e. you must have a ‘good credit’ to be awarded the loan.
This is why a group of investors came up with personal loans with no credit checks. Companies such as ALC Commercial and Bad Credit Loans offer these alternative loan types of businesses and individuals. No credit check loans are loans that are deposited into a borrower’s account by a lender without performing a background check on the borrower’s credit score.
Let’s look at the pros and cons of taking a no credit check loan.
Advantages of a no credit check loan
- They’re fast – borrowing a no credit check loan is very fast. It only takes up to an average of 24 hours. Unlike the traditional lenders that take a long time to approve your loan request, no credit checks loan companies, on the other hand, have a quick approval time since they don’t perform credit checks.
- Easy to apply – Be it that you are a grade 7 drop out or a university graduate, you can easily apply for the loan. It only involves filling either an online or hard copy application form.
- Efficient – this loan is always appealing to those who have emergency expenses that need urgent payments.
- High approval rates – With this type of loan, most people are likely to meet the eligibility standards. Thus, there is a higher probability of loan approval.
- No credit check loans (soft check done) – People with bad credit do not have to worry anymore. Though traditional banks and lenders impose high-interest rates on high-risk borrowers, they’re more probable to deny you a loan based on a bad trail on your borrowing history
- Helps to build your credit score – When you become consistent and timely with your loan repayments, your lender may report on time repayments within a period of six months to credit bureaus. This will help build your scores.
Disadvantages of a no credit check loan
- Lenders might raise their rates to account for all applicants – though the lender may approve your application without viewing your credit history, they often have to charge very high-interest rates in order to ensure that they aren’t putting themselves at risk. Most of no credit check loans are expensive since the borrowers are viewed as high risk because of no collateral and poor credit scores. This makes some borrowers end up choosing to pay more than 100% APR or to have their names on the CRB list.
- The loans have a limit amount that you can borrow – most of the lenders often set a minimum loan application amount making it inconvenient to some borrowers. In case you might need a small dollar amount to settle your monthly rental fee, you would want to try another option to personal loans.
Loans That Have No Credit Checks
Having mentioned the benefits of no credit check loans, I am sure you are already planning to make your first loan application. Let’s take a quick look at the types of loans that do not depend upon credit checks:
- Payday advances – these are secured without collateral and are typically due next to payday.
- Car title loans – these are secured on the equity in your vehicle.
Rather than a credit check, the lenders may need your personal information such as bank details, an accurate phone number or income confirmation.
No credit check loans can be described as quick to give, quick to pay. This only means that the loans should typically be repaid relatively quickly, from one to four weeks. Failure of which, you shall be charged extremely high-interest returns.
How much money can you get from a no credit check loan?
The loans offered may vary with your chosen lender and your pay scale. The loan can range anywhere from $ 100 to $ 10,000. The amount does depend on your personal cirumstances, but lenders can be flexible with the borrowing amount.
Lenders often offer different services. Some lenders come up with the borrowers’ loan conditions into installment loan repayment amount depending on one’s monthly earnings and conjointly work with you to assist you to make your payments within the stipulated time.
Over to You
In case an emergency arises that will require immediate cash, borrowing can be your only option out of the predicament. That is if you don’t have some emergency funds set aside. Before you jump to apply for the fast, no credit check loans, you should make sure that:
- You are capable of repaying the loan.
- You have done research on multiple lenders and compared their rates before settling with one.