No Credit Check Loans
Try going to a bank to get a loan and ask them if they will loan you money without checking your credit. Chances are, you will be laughed right out of the door. Banks and other traditional lenders wouldn’t dare give out their precious money without performing a full credit check and having you tell them your life story before you can be approved. Other lenders have recognized this and found an opportunity to help people who may not have the greatest credit score get money they need as long as they have the ability to repay. This help comes in the form of no credit check loans.
What are No Credit Check Loans?
No credit check loans are simply loans provided that don’t require a credit check in order to be approved. There are different types of loans that offer the ability to be approved without a credit check. Some of the most popular ones are:
- Cash Advance Loans: These are very similar to Payday loans, in that they are small short term loans that are to be repaid within a specified time frame or the borrower risks paying late fees. Some lenders that offer these loans will not require a credit check to be approved.
- Payday Loans: These loans are approved with the promise that the borrower will repay the loan plus interest on their next pay day. Just like cash advance loans, if the payday loan isn’t repaid by the specified due date, the lender will charge late fees. For payday loans, the borrower’s income and employment are the main determinants to be approved.
- Secured Loans: These are loans that are backed by some form of collateral. The borrower provides some form of collateral (car title, gold, silver, antiques, etc.) to secure their loan. If the borrower defaults on the loan, the lender can take possession of the collateral in order to satisfy the loan. Not all secured loans are no credit check loans though. Check with your lender to see if they allow secured loans as a way to get approved without a credit check.
- Bad Credit Personal loans: These loans are given by lenders who specialize in lending to people who have bad credit. They realize that people with bad credit will not have a solid credit history, so instead they look at other aspects such as income, employment, and ability to repay to approve loans. Most bad credit lenders will not run a credit check because they know that the borrower came to them specifically because their credit is bad.
Can I trust No Credit Check Loans?
No credit check loans are 100% real and safe to trust. As long as you are dealing with a genuine lender, no credit check loans have no strings attached and are not scams. You should realize that since you have bad credit, you will be seen as a high risk borrower. This means that you will be paying higher interest than someone with a mediocre or great credit score would. This is true for almost any type of loan. By not running your credit, lenders are taking a risk that you may not repay the loan so they understandably charge you more for this service. But the costs associated with these loans is often seen as better than the cost of not paying your bills which will damage your credit score even more and can result in having utilities shut off.
Another misconception of no credit check loans is that they charge unnecessary fees. This is somewhat untrue. Usually the only additional fees associated with no credit check loans are late fees for not repaying the loan on time. But this is penalty that all loans come with. So in order to avoid these fees, repay the loan on time and in full.