If you are applying for a loan to a bank, it usually requires a credit check. If you do not have a good credit but high income steady job, you probably will get the loan that you are requesting. If you have a low credit score, it does not mean that the loan cannot be granted to you, all you need to do is present to the bank papers or proofs to the bank that you can really pay. Of course, all loans require collateral. Personal loans mean that you are pledging your properties like house, car and other investments. It is a risk you have to take but if you are a good creditor, you do not have to worry.
No-credit-check personal loans are types of loans that you will not require you to have a credit check. It provides personal loans to low income individuals. It is a novel way to overcome credit problems. Even if you have a bad credit, you can still have your loan approved. They are usually high interest rates compared to secured loans.
Here are some guides to No-Credit-Check personal loans:
- Interest – in every loan that you make, interest is always there. A bank or credit bureau will have at least livable interest rates. This type of credit loan has usually twice the interest rate of the normal personal loan. Ask yourself if you can pay for this kind of loan because it can be a burden if you are not capable because of the high interest. Take out a calculator and try to compute how much the interest will cost you. If you are confident, enough that you can pay for it then do not hesitate to apply for the loan.
- Collateral – On no-credit-check personal loans, the interest rate is higher. Banks that grant this kind of loan need a personal guarantee to the creditor in the form of collateral. You will have to pledge for your properties like your house, personal stuff, car and other investments. It is against the law to sell these collateral properties if you are not yet finished paying for your loan. Banks have the right to take these properties if you are proven not capable of paying your loan.
- In applying for this type of loan, you definitely need a job and pay stubs. They will determine the load amount of your loan depending on your monthly income. You are required to submit a checking account of your social security number. They are going to deposit the amount in that account. These credit companies usually give out small loan but with high interest rate.
- Approval is fast and quick – thanks to the no credit assessment, these loans approval process is easy and without hassles. If you are in dire need of money, you will get your loan in no time. Most lenders provide loan approval within one day into your provided account.
These loans are meant for emergencies where there is no credit assessment processes and urgency is the main issue. Just remember that the interest rates are almost doubled so you are actually paying much more that what you have actually borrowed. You must think carefully before applying for this kind of loan, if you do not need it that badly, I suggest that you go to the traditional credit-check loan.