0 credit cards | No Credit Check Loans: Personal Loans For Bad Credit

No Credit Check Loans: Personal Loans For Bad Credit

hen you are in a financial crisis and have a bad FICO score, going to a normal bank to get a cash loan is not really a viable option.  Traditional lenders are not interested in writing bad credit loans.  After all, you are perceived as a bad credit risk.

So, are there lenders that specialize in cash loans for people with no credit check?

Yes.  In response to this need, some lenders have designed no credit check loans to assist borrowers in an emergency.  These lenders provide you with instant cash without checking your credit report.  In many cases, the lenders do not even ask the reason for the loan.

No Credit Check Personal Loans For People With Bad Credit

The ideal candidate for a personal loan without a credit check is the borrower who needs a loan for bad credit.

However, if you have had too many credit inquiries over a short period of time, you might be interested in a no credit check loan to avoid an additional inquiry into your credit report.  Each additional inquiry, over a short period of time, further damages your credit score.

Also, because the lender is taking a risk by lending to you without a credit check, he is going to charge a much higher interest rate and require the loan to be repaid over a shorter period of time.  The lender may also charge additional application and processing fees in addition to the interest.

Options For No Credit Check Loans

There are three different types of no credit check personal loans commonly found in the United States today.

Payday Loans. Pay day loans are the most common types of no credit check loan.  A payday loan is usually offered in  a small amount; and, lenders do not care about your credit score.  They are available immediately, usually by writing a post dated check to the lender in exchange for immediate cash.

Secured Loans: These typically range from the pawnbroker on the corner to car title loans.  In each case, the lender allows you to post collateral to cover the loan should you default.  In the case of the pawnbroker, you will leave the collateral with the broker, while a car title lender will allow you to retain possession of the vehicle while he keeps the title.  The interest charged on these types of loans is still high, but not as high as a payday loan.

Unsecured Personal Loans: Unsecured loans are difficult to get. Usually these loans are underwritten by finance companies for larger amounts and a longer period of time.  The interest rate is usually pretty high.  In lieu of a credit check, the company will look at whether or not you have a job and a stable place of residence.

The no credit check loan is a fast, hassle free method of obtaining a short term loan.  However, as with any convenience, you will have to pay a price in the form of high interest, fees and a short repayment term.

All of these factors need to be weighed against the need for the loan.  However, if you have a bad FICO score or need to avoid another credit report inquiry, the no credit check loan may be the best option for an immediate bad credit loan.

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