How Do You Apply for a No Credit Check Loan?
- Financial Connections. Opened a joint account with someone? Co-signed on a credit application? Such relationships are recorded here.
Don’t be discouraged if your credit file contains troublesome entries. When you apply for a no credit check loan, lenders understand that you probably have some issues in your history. You can still be approved, with appropriate terms.
Several hard credit checks over a short period have a negative effect on your perceived creditworthiness, so you should limit how often they occur. Now Loan’s pre-approval system helps you to accomplish just that, only placing your application in front of lenders prepared to work with you.
Types of No Credit Check Loans
There are two main types of no credit check payday loans and personal loans. Which you choose determines the maximum amount of money you can request, how long you have to repay it, the interest rate, and other terms.
You can potentially borrow ?10,000 or more with a personal loan, depending upon your creditworthiness as determined by the application process. The payback period is typically between 1-7 years for an unsecured loan of this type or longer for a secured loan. Along with a lower interest rate than a payday loan, these favourable terms come with more stringent qualification requirements.
By contrast, payday loans max out below ?10,000 and typically need to be repaid in 3-9 months time. Literal payday loans, meant to be paid on the borrower’s next pay date, do still exist, but the term has become shorthand for any fast, low-value loan.
Because of the short-term nature of these loans, their interest rates are much higher. It is important that you review the terms of the loan carefully. If you are not convinced you can repay the full amount in the time allotted, you should explore different options.
Which Loan is Right for You?
Personal loans are the better option across the board if you can qualify for one.