What are No Credit Check Loans?
No credit check loans mean exactly what the name suggests. These loans are offered without the lender considering your credit score. That means that irrespective of your credit score, the lender will not deny you credit based on your credit score.
These loans are often short-term loans and borrowers utilize them to sort out urgent issues. The truth is that even lenders who advertise no credit check loans still run a check on your credit history. Although the check may not inform their decision to approve or disapprove your loan, they will want to know the kind of person they are dealing with.
Benefits of Credit Check Loans
Easy to apply
It is easy to apply for this loan. You will only need to complete an online application and submit. This means that you do not need to visit the lender to apply for the loan. You can apply from the comfort of your home. More on greenday loans here.
You will need to complete the application with your basic information, your employment and income information, and your bank details.
The lenders do not request for complex information. It is also easy to qualify for these loans since you only need to meet an income requirement. Once you can provide your personal details and have been able to meet your income requirement, you can qualify for the loan. you can get money the same day or next business day depending on when you apply.
Remember that since this loan application is online, it may not even involve any paperwork and that offers a lot of conveniences.
No hard checks- means a soft credit check
It is convenient for borrowers to apply for loans where there are no hard credit checks. Hard credit checks reflect on your credit report and they negatively impact your credit score. No credit check loans conduct soft credit inquiries which have no negative effect on your credit score.
Secure and safe
Legitimate lenders secure their websites and so your information is well protected. These websites have encrypted data protection that prevents intruders from stealing your information. The lenders also have an obligation of keeping your personal data safe.
Fast approval no credit checks
When you apply for no credit check loans, most lenders try as much as possible to approve your loan quickly. That means you will know if you have been approved or disapproved of a loan very soon.
Short-term loans no credit checks
These loans are usually short term loans and you will be expected to pay back the loan within a few months to a five- year period. This means that you will not stay in debt for a long time. Once you plan very well, you can pay back your loan in time.
Variable loan amounts
The loan amount for this loan type varies but it depends on your creditworthiness. Lenders consider the amount you are applying for as well as the amount you can comfortably to pay and then decide the amount to offer to you. On the average, loan amount range from $100 to $1000
How Do No Credit Loans Work?
Most lenders who offer no credit check loans are payday lenders. If you decide to get this loan, you should first make everything you will need for the application ready. You should get all the information on your income, employment, and personal data ready before you begin the application process.
No credit check loans did quickly
You can complete the process in less than 10 minutes. Once you submit the application, the lender will review the application and then inform you about the status of your loan. You should note that no credit check lenders will conduct a soft inquiry on your account before offering you the loan.
Interest Rates for no credit check loans
The interest rate on no credit check loans is quite high. The lender will decide on the rate based on your creditworthiness. If you have a high income, you are likely to attract a lower interest rate. You should try as much as possible to repay your loan on time.
The lender will inform you about the loan term. You will need to plan the loan repayments based on the loan type. If it is a payday loan, it means you will need to pay back by the next payday. If that is the case, it is important to plan your next salary so that you do not default on the loan.
Loan Repayments for no credit check loans
If it is an installment loan, you will need to make monthly payments for an agreed period. It is recommended that you budget your finances well so that you can also secure some cash for the payments.
One of the easiest ways to make monthly loan payments is to set up automatic payment and then you will only need to leave enough cash in your account by the end of the month. The lender will get the payments even without your involvement. With this, you do not need to keep track of the due dates.
No credit check loan fees
These loans also attract fees, however, the fees depend on the lender you are dealing with. Fees that you are likely to pay for include processing fees, origination fees, prepayment fees, and late fees. Some lenders waive some of the fees while others charge lower fees.
Rollover fees for no credit check loans
You should check all these before engaging with the lender. Fees such as late fees can make your loan very expensive. This fee can be avoided if you pay your loan on time. It is essential that you make payments on time to avoid late fees.
Making late payments do not only attract huge fees, it can also have negative impacts on your credit score. Some lenders report missed payments to some or all of the three main credit reporting bureaus.
Bad credit loans and no credit checks
That means that the missed payments will show on your credit report. You will also end up destroying the relationship you have with the lender. That will jeopardize your chances of accessing a loan from the lender when you next need one.
It is important to shop for options before applying for the loan. You should also watch out for scam lenders.