subject: Loans With No Credit Check Right Away From Direct Lenders [print this page] There are millions of people struggling with a low credit score today and lenders are now targeting them as they try to get more people to apply for their loans. One way that they are doing this is by offering loans with no credit check and what this simply means is that the lender you pick will not verify your credit history. You will therefore get by even in situations where you have been involved in things like bankruptcies and defaulting among others.
Things you need to understand on no credit check loans
Interest rates and terms: you should know that the interest rates that you will get when applying for these loans will be way higher compared to loans that are offered to people with high credit scores. The lenders can therefore easily offset any losses that are likely to occur if any borrower fails to settle his debt fully. The terms & conditions on the loans are also very strict to ensure that the applicant handles all repayments promptly.
Pledging collateral: the fact that there is no credit verification in the application process for loans with no credit check means that they are open to both people with no credit and those with troubled credit history. It is therefore very risky for the lenders who offer these loans as there are no guarantees of getting prompt repayments on their loans. You will therefore find some asking their borrowers to pledge collateral to have some security.
Availability: loans with no credit check are available from local and online lenders therefore you can go with the choice that seems more convenient to you. However, local application can be quite frustrating since you have to deal with the lender you pick in person and shopping for the loans will mean visiting one lender after the other. You can avoid all this by applying with online lenders where you will benefit from:
Filling only a simple form in the application process
An application process without paperwork or faxing
Fast processing of funds
If you qualify for no credit check loans, you can utilize the chance to work on your credit rating to make it easier for you to qualify for other loans. You can do this by applying for loans with longer repayment periods, always maintaining low debts compared to your credit limit and making timely repayments for the loans.
