Applying No Credit Check Loan
Applying No Credit Check Loan – If you need to get a loan but your low/no credit history limits your options, you may consider;
applying for no credit check loans.
This loans can be either secured or unsecured Personal loan. No credit check loans differ from other types of loans from where the lender focuses on.
No Credit Check Loan
In that type of loan, lenders may want to check your credit score. They will base their decisions on your income, employment status and bank statements. Thus, regardless of your damaged or no credit history. You have a chance to get the loan you need for your needs including holiday expenses, cosmetic surgery expenses or dental expenses.
Applying No Credit Check Loan – Loan Without Credit
You may apply either by visiting the lender or online. The lender needs to be make sure that you will be able to repay the amount you get by checking the last three months of your banking history and your income and expenses.
If you are applying no credit check loan online, you have to upload several documents including personal info, 100 points of identification, internet banking details, employment details and employer contact info, etc. You also have to have an active mobile number and e-mail address, a regular income must deposited into your personal bank account for the last 3 months, and an internet banking set up.
Secured/Unsecured No Credit Check Loans
Applying no credit check loan with an affordable interest rate, you can pledge your asset as collateral. Since no credit check loan terms include taking your asset’s possession in case of failing to complete the repayments, you have to take the risk of losing your asset. If you do not want to take that risk, you may apply for unsecured no credit check loans. Ask someone with better credit score to act as a co-signer to get a more reasonable interest rate.
No Credit Check Fast Cash Loans
No credit check loans are unsecured loans actually quite similar. For your emergency needs, you may borrow from 300 to 10,000 to repay within one or two years. Use of that loan for your unforeseen emergency needs including car/Home repairments, rent, food, petrol, phone bills, etc.
The Disadvantages Of No Credit Check Loans
Despite your low or no credit history, some lenders are willing to help you to obtain applying no credit check loan by focusing on your income, employment status and bank statements rather than your full credit report.
But, why would these lenders accept to provide you a loan only with a brief review? That’s actually quite simple, as their customers fail to afford their loans due to their financial issues, the lender offers the loan to roll over and earns more.
Loan Rollover – No Credit Check Loans
If the borrower fails to complete his/her monthly repayment, the lender offers an extension on the due date of the loan by charging the borrower additional interest for borrowing the same amount of money.
For example, if you borrow $100 + $15 interest, due in 14 days but you fail to pay off in 14 days, the lender will offer you to roll the loan over. Then, you only pay the $15 interest and get additional 14 days to pay back the $115 that you still owe. Thus, by applying no credit check loan you get now costs you $30 per $100.
As you roll the loan over, your loan becomes more expensive and difficult to repay. In addition, according to researchers, over 80% of payday borrowers rollover or re-borrow their loans.
Are No Credit Check Loans Safe?
It depends on the lender you choose and the type of loan you receive. There are both reputable lenders and predatory lenders. It can be challenging to find a safe no credit check loan from a reliable lender. If you do not choose the correct lender to receive a short terms, sky-high interest rate, penalty fees and the high risk of rollover can lead you to fall into a debt trap.
Auto Title Lenders are even worse. They offer secured loans with lower rates of interest but when you fail to repay, the lender takes the possession of your valuable asset.
There are also pawn-shop brokers who offer you a small loan based on a fraction of the perceived value of the item (a computer, a power tool, etc.) and keep it until you pay off your debt. If you fail to repay, it’s time to say goodbye to your item.
Cons Of No Credit Check Loans
There are various disadvantages of applying no credit check loan. Firstly, you should remember you have to repay everything you borrow anyway. Extremely high interest rates and extra fees of no credit check loans may cause you to fall into a debt cycle. So, you have to avoid borrowing money unless it is necessary.
Secondly, the loan amount you can receive is limited. You can borrow lower than traditional amounts. Also, if you need $500 or less, your application will not be approved. Lastly, you have to earn at least $1,600 a month and prove your income with paystubs, bank statements, etc.