When applying for a personal loan, you realize that your credit history is lacking. Or, you have a low FICO score – less than 580. Both these situations make it challenging to get your application approved. Even when you qualify for the loan, you may not get better terms.
There are around 25% American adults with a lack of credit history or thin files. So, is there no option they can get a personal loan with less-than-perfect credit? Fortunately, you can choose a no credit check loan from reputed lenders.
You may be trying to rebuild your credit ratings, or you don’t have any outstanding debt. In such cases, get a loan for a shorter repayment period without a hard credit check. Here is what you should know about loans that don’t rely on your credit scores:
3 Types of No Credit Check Loans
Direct lenders offer short-term loans, installment loans, payday loans, and payday loan alternatives. However, they may carry higher fees and interest rates. Choose one that fits your needs, budget, and due date.
You have a variety of loan options to build your credit history.
1# Secured Personal Loans
It is easier for people with bad credit to get a secured personal loan than an unsecured one. Lenders require collateral, such as your vehicle or home, which you can lose if you default. But with timely payments, you have great incentives. They come with high loan limits and favorable rates.
2# Payday Loans
You can get a payday loan for as low as $300, but a high fee. The due date is when you get your next paycheck.
Qualifying for these loans is easy as lenders only check your ability to repay on time. The interest rates depend on your state limits. However, nonpayment on time can put in more debt risks.
3# Cash Advances
Installment loans and other types of cash advances are free from asset attachments. The amount of your loan gets disbursed in cash, borrowed from your credit card balance.
Here, the interest rates are lower and repayment periods longer. To qualify you for a loan, lenders don’t look into your credit report or past defaults.
6 Benefits of No Credit Check Loans
#1 Quick Processing
Lenders understand the urgency of the borrowers and process a no credit check loan quickly. This factor makes bad credit loans excellent sources to gather funds in an emergency. The amount gets transferred to your checking account instantly.
#2 Fund Personal Purposes
You can use the loan amount to get you out of any sticky situation. Pay for your medical bills or general living expenses until your finances get better.
#3 Upgrade Your Business
Maintaining your business can get quite challenging, with its share of ups and downs. If you are venturing into a new project, and need funding in a short time, use these loans.
#4 Affordable Rates
Lenders offering poor credit loans have low APRs (annual percentage rate). Moreover, your monthly payments go towards repaying the principal amount.
#5 Manageable Payments
With a manageable payment plan, you get an extended repayment period. You will have less pressure than if you need to pay back thousands of dollars immediately.
#6 Debt Consolidation
Utilize the online loan for bad credit to pay off the owed money to several creditors. Then you can stop worrying about making multiple payments every month.
Applying for No Credit Check Loans
Qualifying for a no credit check loan can be straightforward if you are over 18 years of age. You should hold an established job at least for 90 days before applying. Your monthly income should be $1,000 or more, with taxes.
You need to prove that you are a U.S. citizen or a permanent resident. Provide the address and phone numbers of your home, work, and a valid email ID.
You May Like To Read:
- What Are the Benefits of No Credit Check Loans?
- How Do No Credit Check Payday Loans Work
- Top 10 Reasons Why Payday Loans are So Popular
Author: Cathy Carter