A no credit check loan is one where you will be able to
borrow without having a good credit record. Although all lenders will do a
credit check, there are some loans where the credit check is just a formality
and the lender will not mind if you have a poor credit rating and still lend to
you. There are a few different types of no credit check loans such as payday
loans and instalment loans. There are also different lenders to choose between.
It is good to do some research to find the best for you, but you may be
wondering where on earth to start?
- Pick the right loan for you – it is best to start by finding out all about the different types of loan that you can choose from. You need to look at how much you can borrow, what the repayment terms are and any other expectations. You should know how much you need to borrow, how long you need the money for and hopefully how much you will be able to afford to repay. If you do not know this then find out and then you can work out which loans will suit your needs the best. Often this will be determined by the amount of money that you need to borrow but it is important to think about how much you can afford to repay right at this stage as it will make a huge difference later. There are no that many no credit check loans available so it should be pretty easy to decide which one will be the best for you.
- Decide what you want from a lender – once you have decided on the type of loan that you want to go for, you will need to pick between all of the lenders offering this type of loan. This can be really tricky as there will be a lot to choose from. Therefore, it is important to think about what you want form the lender and this will help you to pick between them. Think about things like whether they are well-known, if they are highly rated, how much they charge for the loans, if your friends would recommend them, if they have good customer service and things like that. You need to think about what is important to you when it comes to choosing a good lender. If you have borrowed money before then this might be easier as you will know what lenders are like. However, you should be able to imagine what it might be like, especially if you have ever dealt with a bank or building society or even any other company.
- Find the best lender – the trickiest bit is now to pair up the lender with your requirements. You will need to research each one and look at their qualities and whether they match with what you are looking for. You will be able to find out quite a lot of information form their websites. You could also ask people you know whether they have ever used this sort of lender and if they can recommend one. Looking at online reviews can also be useful but you may find that this might be a little tricky as some lenders may be new and not have reviews and some reviews may be biased. However, if you take a look at lots of review sites, then this should help you to get some impressions. It can also be sensible to contact the lender. Use the means of communication that you are likely to use if you do get a loan form them, whether that is email, online form, text message or whatever and see what sort of response you get. It can be good to judge on how quickly they get back to you, how well they answer your query and how polite they are. Think about whether you would be happy dealing with then if you have to.
This may seem like a lot to do just to get
the best loan. However, it really is worth putting the effort in. You could
find that you will save a significant amount fo money if you do this. You may
find that you get a loan that offers much better value for money. You may find
that you get a loan that closely meets your needs. There are all sorts of
advantages and it will mean that your borrowing experience will be much more
positive as a result. You do not want to regret the choice that you made,
perhaps picking the wring loan or a lender that you do not like. If you spend a
bit of time on this, then you will end up much happier with your choice and you
should be able to have a really positive borrowing experience. That has got to
be worth it!
If you have a poor credit rating then you will be limited in
the borrowing that you can do. Many traditional lenders will avoid lending to
anyone with a poor credit limit and this means that you will have to look at
short-term loans if you want a loan where the lender is happy to allow those
with a poor credit score to borrow from them. Within this category there is a
selection of different loans available. The instalment loan could be considered
to be one of the most useful and it is good to know a bit more about it so that
you can decide whether it might be a good choice for you.
What is an instalment loan?
An instalment loan is a short-term loan which you repay in instalments. That sounds very obvious, but as short-term loans differ and some do not work like this it is an important feature. The loans tend to be available to most people even if they have a poor credit record. They can usually be arranged pretty quickly and are often for smaller and more manageable sums of money. This means that if you are in a rush for money they can be one of the better options for you. They will also be appealing to anyone with a poor credit record. As they can be arranged quickly, they can also be good for anyone who needs money really quickly.
How is it better than other options?
Other short-term loans include a payday loan. This is very similar but the loan has to be repaid in one lump sum. Although some people really like this as they can really quickly repay the money that they owe, it can be difficult for some to find the money to repay and the money they need to also cover their bills and other expenses afterwards. Therefore, having an instalment loans, where you can borrow a similar amount but repay it over a longer period can make repaying much easier. You may also be able to afford to borrow a bit more money as you will not have to worry about repaying it so quickly. Another short-term loan is a guarantor loan and you also repay this in instalments. However, you tend to borrow more money and need a guarantor to cover repayments if you cannot meet them. Although some borrowers prefer this, it can be problematic for those that do not know anyone that they can ask to be a guarantor for them.
Are they best for poor credit?
Whether these are the best for poor credit is something that could be argued back and forth at length. However, the fact that you repay in instalments means that it is easier to afford those repayments. If you have a poor credit score, it could be because you often struggle with repaying things or you do not have a very high income. If either of these is true, then repaying in smaller amounts is likely to be an advantage for you. Although the loan will last longer and might be more expensive than loans where you repay more money over a shorter period, you are less likely to miss a repayment. If you do miss a repayment you will have to pay extra charges and this could lead to the loan being much more expensive which is not something anyone wants. There are other poor credit options though and it is good to look at them all to work out which will be the best for you.
How can it help me?
You will need to think whether an instalment loan might therefore be a good option for you. Every borrower is different with regards to how much they want to borrow, how much they are prepared to pay for their loan, how quickly they can repay and how much they can afford to repay as well as what their credit record is like. Therefore, whether this loan is suitable for you will depend on your situation. If you need money quickly have a poor credit record and want easy to manage and regular repayments then this could be a suitable loan for you. However, if you even if you have a good credit record it could still be a good loan for you if you need the money really quickly and want to repay it in small amounts. You will therefore need to think about the situation that you are in and examine all of your preferences with regards to loans as well as your options and make the best possible match that you can. It is worth finding out more about all of the different loans that are available to you and you will then be able to make sure that you choose the one that is best suited to you.