Having good credit opens many doors and being burdened with poor credit closes even more. Those with the worst credit often find themselves unable to get loans, credit cards, and even bank accounts.
Even people with slightly below average credit are now being rejected by lenders.
Just when there seem to be no options, these consumers read an ad for short term loans No credit check, it says, but can that be true?
High Street lenders said they would increase consumer lending but most have not followed through.
They are very wary of borrowers who present even the slightest level of risk. Lending to individuals who were not the most creditworthy proved a mistake a few years ago.
These institutions are still reeling from the effects and will not soon re-enter that territory.
People with poor credit often look for short term loans to cover unexpected expenses. Some apply to banks, only to be rejected. Others need cash quickly so they cannot go this route, though it is unlikely to be successful anyway.
A better option for both groups is loans with no credit check. This way, they do not have to worry about their tarnished credit history preventing them from getting the cash they need.
Short Term Loans No Credit Check Required?
With these types of short term loans, no credit check is ever run, not even a credit score inquiry. Consumer credit standing remains unknown to these lenders. In exchange, borrowers are willing to pay the higher interest rates that these loans carry. It is a small added expense for getting money they cannot obtain elsewhere.
By their nature, short term loans feature quick repayment, making the high rates less painful than they would be for longer-term financing.
Consumers may sometimes hear short term financing referred to as a payday loan. No credit check is usually involved in this type of funding and the loan is designed to be repaid with the next paycheck. Some short term loans feature a longer repayment period than this.
Short Term Isn’t Always Best
Consumers who do not think they can repay the money with their upcoming check should consider a loan with a longer term. They should be able to find loans with no credit check that feature a two or even three-month repayment period.
The common question is what differs with these short term loans. No credit check is one aspect and the other is being able to complete the entire transaction online. Lenders provide electronic applications that are submitted online rather than faxed.
Many of them do not require additional documentation, making it possible to apply for the loan in just minutes.
Guaranteed Or Instant
Another difference from conventional financing is that the lender may either guarantee approval or make an instant approval condition. Loans with no credit check and guaranteed approval sometimes must be secured by an asset that serves as collateral.
With instant approval, the applicant waits only a few minutes to learn whether he or she is approved for the loan.
Even when consumers have poor credit, they may be applied for these short term loans. No credit check are beautiful words to read when reviewing online short term lenders. Whether they opt for two or three month financing or a payday loan, no credit check features can be found through online research.
It is much easier to get money this way than by dealing with a High Street bank.