What are no Credit Check Loans?

There are many different types of loans these days and it is not always easy to keep up with them and what they are all about. For example, no credit check loans are pretty new onto the market and might be something that many people have not used before. However, they can open up lending to a group of people that were not able to get loans before and therefore can be very useful for certain people.

Poor credit rating

It used to be the case that people who did not have a good credit rating did not have any borrowing options at all. However, with the introduction of no credit check loans it meant that they did. The lenders will still do a credit check but they will not worry about whether the person has a poor credit history. They will only check that they have an income to see whether they will be able to repay the loan. This means that the loans will be available to almost anyone that wants one. Traditional lenders will always do a credit check and will only lend to those people that they trust to repay. This means that they will look to see whether you have repaid loans in the past or kept up with payments on bills and things like that. They will all have different criteria as to how high a risk they think potential borrowers are and so some may reject people and others may not. However, if you have previously been rejected, this will show up on your credit report and may put off other potential lenders. Therefore, applying to a lender which is unlikely to turn you down will be a way to avoid this.

Need money quickly

Many loans take quite a while to arrange. This is because the lenders only work office hours and they take a while to sort out all of the relevant paperwork and do the checks that they need to do. However, a no credit check lender tends to organise things really quickly. This means that they are able to get the money that is required into the bank account of the borrower within a few hours in some cases. They do this because they are very aware that many people do turn to them to get loans in an emergency. Perhaps to pay a bill, replace something that is broken or just to buy food and therefore the money will be required really quickly. They will therefore make every effort to get the loan sorted out in a short space of time, although how long this takes will vary between lenders. This means that if money is needed in an emergency then these types of loans can be really handy regardless of whether you have a good or poor credit rating. But do check with your potential lender if you need money fast to see how long it will take them to organise the loan as it may vary quite a lot.

Quick to repay

No credit loans are often really fast to repay. This means that you will not be in debt for very long. This can be a great thing for many people. Some people are not keen on being in debt and so the idea that their debt could be limited can be a really attractive prospect. Others may need money available to them in the future so will want the loan to be paid quickly so that they are not paying out for too long and can therefore use the money they would have been paying out to help them out in the future. It can just be great to know that your debt will not be around for that long and that you will only make one or a few repayments before it goes.

There are different types of no credit check loans as well and so you will be able to choose one which suits you the best. You will find that there are some that lend small amounts of money and some that lend larger amounts. Also, the repayments terms will be different with some needing repayment in a few weeks and others taking longer. You will need to look at the different loans types in order to work out which one will be the most suited to your needs. It is wise to have a good idea of what they all are so that you will be able to decide whether any might be appropriate for you to use. You may know about payday loans where you borrow small amounts of money and repay in a few weeks when you next get paid in one lump sum. There are also similar loans where you can repay in a few instalments to make repayments more manageable. Then you will find that if you want to borrow significantly larger amounts of money you can opt for a guarantor loan, which you will pay back over a much longer term and you will need someone with a good credit rating to act as a guarantor for you.

Is it Wise to use no Credit Check Loans?

There are many different types of loans available for us to use, but we might feel that there are some loans that are better to use than others. It might be for a number of reasons, but it is good to think about why you might be put off certain types of loans. For example, you may have heard of no credit check loans but do not use them because you have concerns. It is good to address these so that you do not dismiss them without real reason. Otherwise you might find that you are missing out on a borrowing opportunity which otherwise might be really suitable for you. There might be reasons why you choose other types of loans but it is good to think about whether these really are good reasons to use them

Known lenders

It is not surprising that many of us will tend to use lenders that we know. This could be because we feel that we can trust them more. However, many of us do not actually have any reason to trust them more. If you have used them, then your personal experience will tell you that. But often we will trust a well known lender even if we have never used them ourselves. This is because the fact that we know their name somehow makes us feel that they can be trusted. We think that they must behave well if they are well known as they cannot afford for their reputation to be spoilt but actually this is not really right. An unknown company has far more to lose because if one person says they are bad it might be the only thing anyone has heard about them and they may lose lots of custom as a result and fold. However, a big company can afford for a few people to say bad things about them and to lose a few customers so they may actually try less hard to impress their customers.

High Street presence

We may like to use a lender with a high street branch. We might like the idea that we will be able to go in and talk to someone if we need to. However, most of us do not bother to do this and would rather use online or telephone help so that we do not have to go out and can do so outside of bank opening hours. It is worth thinking about whether it really will be necessary to have a branch. Also if the company does has high street branches their costs will be much higher as the business rates for high streets are high. This means that it could be more expensive to borrow using a company that does have high street branches.

Advertise

When companies advertise, either on the television or on the internet it can make us more aware of them and we think that we can trust them more. We feel more familiar with the brand and we might feel that we like them because of these adverts. However, it is worth thinking about what these adverts really tell us about a company. They might tell us that they can afford to advertise and perhaps a little bit about the products that they offer but that is all. This means that we might be better off actually using a lender that does not advertise. They will not have those expenses which could lead to them charging more money. We can also find out about their products on their website so do not need to look at an advert to do that.

Traditional types of lending

It might be that you feel you can trust traditional types of lending because it is what you are used to. However, we do need to be open to change or else we might find that we are throwing away an opportunity that might really benefit us. If we have a poor credit record then those traditional lenders may not lend us anything. This means that the only choice we may have is to go to no credit lenders. Then we might need the loan really quickly and there will be more chance of this happening quickly with a no credit check lender as they tend to be geared up for lending to people in an emergency. More traditional lenders will tend to take their time.

It is therefore best no to discriminate against no credit lenders until you know a bit more about them. Just because they are not so well known does not mean that they are not so good and you might be missing out on the opportunity to get loans that you may not be offered anywhere else.  So take some time to do a bit of research and think about whether these loans might be better at addressing your borrowing needs than other types of loans.