A loan is a debt that a lender or a bank gives to an individual or a business, and they have to pay back the loan with interest. As the lender is lending money, they need to check if the person can return the money. For that, they check their credit score, which determines their past credit history. If the credit score is good or excellent, then the person has always paid the loans or debts on time. But if the credit score is bad, it can make the lenders feel insecure. Hence, a person with a bad credit score can face many challenges to get a loan. Thankfully, you can now apply for online loans with no credit check. Read on to know more about how you can apply for loans even if you have bad credit.
What is a no-credit-check loan?
The credit score plays an important role when you are applying for a loan. As mentioned above, having a good credit score can make it easier to get approval for a loan, while it can be challenging for you to get a loan with bad credit. In this scenario, a no-credit-check loan can be a great idea. What is this? A no-credit-check loan is a debt that the bank or any financial institution will offer you without checking the credit score. That means, even if you have bad credit, you will be able to get the loan. As easy as it may sound, there are many essential things that you have to know.
Things to know about no-credit-check loan
People apply for online loans with no credit check mainly for two reasons – either they don’t have a credit score or their credit score is bad. If you don’t have a traditional credit account or have not used the credit for the last 24 months, you will not have a credit score. In these two cases, you can apply for loans that don’t require a credit check. But you have to know some of the critical points:
- You will get a small loan amount: One of the most important things you have to know is that you cannot apply for a bigger loan amount under the no-credit-check facility. So you will have to ensure that you are applying for a smaller loan amount to get the approval. But you will be able to pay off the amount over several months in monthly installments or EMI. So, if you are planning to apply for a bigger loan amount, you may not get what you are looking for.
- Proof for income flow is needed: When the lender is providing you with a loan without even checking your credit score, the lender will need the assurance that you have the ability to pay off the money. For this, you will have to show evidence about your income to assure the lender that you can give your EMI. For example, if you are an employed professional, then you need to show your salary slip. If you are a businessman/woman, then show the monthly turnover. Besides these, you have to prove any additional income such as investments, rent, or anything.
- Higher APR rate: One thing that you need to know before you apply for any online loans with no credit check is that the APR (annual percentage rate) is quite high. While the normal APR rate varies from 6% to 10% with excellent credit scores, you may have to pay an APR as high as 400% with a no-credit-check loan. This can increase the total pay-off amount by almost ten times the actual loaned amount.
These are the important things that you have to know while you are applying for a no-credit-check loan. Of course, if you don’t have good credit and need a loan badly, this can be a great solution. But it would help if you kept all these things in mind. Nowadays, many reliable banks and financial institutes offer online loans with no credit check facility. Therefore, you can do a bit of research online and learn more about the facilities, APR, and other terms and conditions.
Company Name: Slick Cash Loan
Contact Person: Mark Snow
Email: Send Email
Phone: (888) 200-7445
Address:1125 E Broadway #545
Country: United States