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.

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