Do you need a personal loan, but your credit is bad? Check out this ultimate guide to no credit check loans and how to get one for yourself.
Do you have a bad credit history?
Are you worried that no one will give you a loan? Are you wondering if you are eligible for no credit check loans?
If you were nodding your head in agreement or saying yes to any of these questions, then you are reading the right post.
Getting a loan when you have a bad credit history can be tricky, but it’s not impossible.
Here are some tips that will help you to secure a loan as quickly as possible.
1. What Types Of No Credit Check Loans Can I Get?
In order to increase your chances of getting a loan when you have bad credit, you must know exactly what types of loans are available to you.
Knowing your options will help you to make an informed decision.
Here is a rundown of three of your best options, how they work and what they can offer you.
These loans can be taken out online. They are also referred to as a cash advance or pay advance loan. Although they started out as loans that people would take out and pay off once they got paid, they have evolved.
Payday loans are no longer just associated with a borrower’s payday, since they can now be requested and paid off on days other than a payday.
The key features of these loans are:
- Short term payback
- Requires no security
- Pays out small amounts
Lenders will usually not do much digging into your credit history for these loans. They usually just want proof that you have a job.
Payday loans are a great choice if you find yourself needing small amounts of cash for urgent needs.
Installment loans are no credit check loans that offer larger amounts than a payday loan. These loans will give you a longer period to pay off what is owed.
This type of loan will suit you, if you have a large bill for home maintenance, medical bills, tuition fees or any sizable emergency expense.
The key features of this loan are:
- longer payback times
- Higher interest rates
- large amounts to borrow
You will need to present proof that you have a steady income and you will also need to show that you have a valid checking account.
Line Of Credit Loans
Even if you have bad credit many lenders will give you a line of credit. A line of credit involves getting a set amount from which you can borrow at different times.
These are great no credit check loans because no payments will be due until you actually make a withdrawal from the line of credit.
Here are the key advantages of this type of loan:
- Flexibility to use as you choose
- Available whenever you need it
- Ability to gauge interest rates based on how much you borrow
If you prove to your lender that you are responsible, it might even be possible to extend your line of credit, if the need arises.
2. How Can You Be Sure You Will Qualify For A Loan?
Now that you know the different types of loans that are available, you may be wondering if you can actually qualify for a loan.
Every lender is different but there are certain basic requirements that are necessary. Here is a look at the most common ones:
You must be at least eighteen years of age in order to get a loan. It doesn’t matter which state you live in, you cannot get a loan if you are under eighteen years of age.
You must be employed. The minimum for some lenders is one month of employment.
However, don’t be surprised if there are lenders who refuse to give you a loan unless you have been working for six months or more. Every lender is different.
A checking account is necessary if you want your lenders to feel more secure about giving you one of their no credit check loans. They will need to know you can pay off your debts.
If you are not a citizen or at least a permanent resident of the United States, then it will be impossible to get the loan. This is one requirement that is legally binding and no legitimate lender can get around it.
Now that you know the basic requirements, the next best thing you can do in your quest for a no credit check loan is to shop around.
Look into the various options offered by each lender and create a list of your needs. Compare and contrast each offer with your most urgent needs.
This will help you to make the right choice.
3. What Fees Will I Have To Pay?
Now that you know about the types of no credit check loans and the requirements for each, you are probably wondering about fees.
These are the major fees that you should know about:
These fees are unavoidable and they usually take about twenty percent of the actual loan.
When you decide to borrow you should take this into consideration especially if you need a certain amount. Always factor in the removal of the establishment fees.
These fees may vary but you can look to pay at least four percent per month.
This is a fixed amount that is paid. However, if you get lucky you might find a lender who pays this fee for you.
If you fail to repay the loan you will incur a penalty which usually means additional amounts will be added to what you owe.
Having a bad credit history can make it seem impossible to get a loan. If you desperately need the money, you may find yourself feeling extremely worried.
Fortunately, the options discussed here are easy to access. However, the most important thing you can do, if you have the time, is to compare the pros and the cons of taking the loan from each lender.
Make sure that you are doing what is best for you in the long run, no matter how pressing the need is. If you would like more advice on financial matters, check out our blog where we give you practical advice on how to make your money work for you.