There are various types of loans that bypass credit checks, one of the most appealing of which is the personal loan.
Personal loans are very simple products, but are remarkably new in the grand scheme of things. Personal loans are small, usually short-term loans that are provided by banks, credit unions, and other lenders and may be used for any purpose.
While most personal loans offered do require good credit, many are increasing being offered without regard for one’s credit history. You may have to do some searching, but the results likely will be worth it. While the interest rates on no credit check personal loans almost certainly will higher than on more traditional loans, they will not be as high as the rates normally associated with bad credit.
Because the lenders of no credit personal checks are unaware of your credit history, some personal loans will require a cosigner on your account. Once obtained, personal loans may be used for any purpose, with debt consolidation being a very common choice.
Personal loans without credit checks usually are relatively small and are granted for about 3 to 5 years. If you need a loan that is larger than usual, or with a longer repayment term, then you probably will need to secure your loan against some collateral. Taking out a secured loan will cause your interest rate to be lower than it would be otherwise.
Because there is no credit check on some personal loans, they also are a good choice if you need cash within a short period of time. The absence of credit checks substantially cuts down on loan processing time.
Still, make sure that you only take out a personal loan that you will be able to repay on time. As you make your payments, you have a unique opportunity to build your reputation with your lender. Ideally, your diligence and reliability will translate into better rates and terms for you in the future.
Another type of loan that does not require a credit check for approval is the payday loan, or cash advance loan. Such loans are offered at an extensive number of similarly named businesses, as well as online.
Generally, all that is required for approval of such a loan is verification of one’s identity, and the loan money sometimes is disbursed in as little as one hour. The amount of the loan provided usually ranges from $100 to $1000. It becomes due for repayment within two to four weeks – on your payday.
There are very high fees attached to payday loans. Lenders determine fees either as a percentage of the entire loan amount, or as a fee per certain amount (such as $30 for every $100 borrowed). In addition, the interest rates for late payments are sky-high.
In many cases, payday loans are “secured” against a personal check made out on the day of the original loan disbursement.
Payday loan companies are in the business of making money off of their extreme fees and interest rates. While they may be helpful in emergency situations when you know you will be able to repay on time, exercise all the caution that you can muster when deciding to use a payday loan.
If you need to borrow a small amount of money for a short-term goal, then consider asking your friends or family for a loan. Such loans almost certainly will not require credit checks! You also may want to inquire about loans from community organizations. Ask around, and you might be surprised where loans turn up.
If you will be attending college, graduate school or professional school, and need to find a student loan without a credit check, then look no further than the federal financial aid program. Except in very rare circumstances, credit checks are not used to determine eligibility for federal loans, and private loans can be found without them too.
More information on no credit check student loans.
A Word of Caution
Before borrowing any no credit check loan, you should inquire about your lender with the Better Business Bureau. While there are many great, reputable lenders out there, there also are companies that will try to take advantage of your difficult situation. Beware of hidden costs, and compare, compare, compare!
If you need to obtain a loan without a credit check, then there is a loan for you. Speak with a trusted financial advisor or a representative from your bank or credit union who can help you to determine your best course of action.