The financial lending market finally toned down it’s strict lending rules a few years ago by offering loans with no credit checks. Anyone one suffering from a bad credit history had no chance of obtaining any form of loan due to past strict regulations. However, as time went by and a growing list of competitors springing into the financial lending business, lenders were forced to reduce their requirements and reach out to those of a less privileged credit history. A typical bad credit history would include CCJ, default, late payment and also bankruptcy. Anyone with these credit problems can now apply for a loan with no credit check.
Loans with no credit check is a thing of recent history, but before then, most banks won’t even consider an application if the applicant had a negative credit history. The advent and upsurge of banks and loan lenders has created a tough competitive market. This competitive market has steered lenders to give loans with no credit check, to avoid them running out of business. Today, anyone with a default history, late payment and even bankruptcy can stand a chance.
One of the major benefits of a loan with no credit check is the fact that it helps individuals meet some urgent financial commitments before their payday arrives. These commitments could include bills, shopping expenses and a host of other things. An added benefit of loans with no credit checks is that it helps individuals with poor credit history to boost their ratings. The credit system rewards people when they make their repayments on time without default.
When applying for a loan with no credit check, its important to understand there are two types. Secured loans and unsecured loans. Secured loans are said to be secured because lenders expect you to have a collateral. A collateral could be anything of monetary value that could be used to repay back your loan should in case you couldn’t pay it back. Collateral’s can include properties, jewelries, stocks and shares etc.
Secured loans have flexible terms and conditions. They also carry a lower interest rate than unsecured loans. Unsecured loans don’t require any collateral. Though they carry a higher interest rate, they’re a better option for individuals with no collateral to put down, in fact they make up a vast majority of most loans with no credit check.
So what are the requirements to obtain a loan with no credit check. First, most lenders would expect you to prove that you have some income coming in. It’s in their interest to do so since they’re offering you a loan with no credit check. Most would expect you to be earning a specified minimum wage. They’ll also expect you to provide any form of document to show you are working, this can be 3 months pay slip, account document’s if you’re self employed, bank statement and so on.
You must also be 18 years of age or over, and reside in your current address for at least 5 years. This figure vary with lenders. You can provide other documents if you’ve been living at your current address for less than 5 years.
You can either get a secured or and unsecured loan with no credit check with money lenders. With the secured loan, you’re expected to have what is called a collateral. A collateral is something of value that can be used in place of your loan should incase you weren’t able to pay it back. On the other hand, an unsecured loan with no credit check requires no collateral.
An important feature of a secured loan is that it carries lower interest charges compared to an unsecured loan. The terms of a secured loan is more flexible. The reason why these features exist is due to the fact that secured loans comes with a collateral, as such the lenders money is more secured and safe.
To be sure that you’ll pay back your loan with no credit check, financial lenders would want you to provide proof of income. This could be in form of pay slips, account statements and other documents that supports and proves you have a source of income. Most lenders would require that you have a full time job. You must be earning their stated minimum income and you must be 18 years of age or older. Another important factor they consider is your duration at your home resident.
One of the key reasons why many people apply for a loan with no credit check, apart from the fact it requires no credit check is the immediate accessibility to cash. It has proven to be very helpful to families and individuals who are behind in bills and other financial commitments before their next payday. In addition, the credit system rewards people with points when they make their loan payments on time and regularly.
Most loans with no credit check fall under a payday loan. A payday loan is a loan given to individuals in need of immediate cash. Often times, these individuals are behind in utility bills or other monthly expenses, and hope to pay back the loan soon after they’ve been paid their wages.
The advent of the internet has really made this type of loan accessible. Its fast, and easy to apply for. Most lenders would approve a loan on the same day and will not require you faxing any document.
With more and more money lending businesses springing up from all looks and corners, it has brought with it options and choices. People with bd credits can access loans with no credit check either online or offline. Offline methods includes the physical visitation of a bank or lending institution. This use to be the common way of applying for loans until the advent of the internet.