In those cases, a loan with no credit check may be an option as a way of showing that they are able to manage credit effectively, building a credit score so that they can access credit from mainstream lenders at some point in the future. Some people have a low score, or no score, because they are young, have moved around a lot, or have just never felt the need to borrow money. So, if your credit score with the main credit reference agencies is poor, working with a payday lender or a cash loan company that uses criteria beyond just your credit score could be the most sensible course of action. There are, however, legitimate companies that offer loans without performing a detailed check. Any company that claims to offer a loan without performing any checks at all is most likely doing something shady, and you could be putting yourself at risk by working with such a company. Stability in terms of regular repayments, not maxing out credit cards, not defaulting on agreements, and borrowing responsibly/only when needed for a major purchase, is a must.Įven companies that claim to offer a loan with no credit check will still want to confirm your identity, and usually do this with what is known as a ‘soft check’. To borrow thousands of dollars over a period of months or years, the lender wants to know that the borrower is capable of making repayments on time for that long. ![]() Traditional lenders expect to see near-flawless credit histories. It’s important to understand, however, that lenders who are offering loans to people without performing in-depth investigations into their credit history are taking a risk, and need to mitigate that risk. The annual equivalent rate for a no credit check loan can appear to be huge, since the amount that the person repays includes a significant charge. No credit check loans will usually be for relatively small sums of money, repaid quickly, and with a high charge for the borrowing. Would-be borrowers should pay attention to the lender and do their own due diligence. Be aware that My Borrowing website is a lead generator and may sell your application to a lender who does perform credit checks. As long as an applicant has some income, whether from unemployment benefits, sickness benefits, or even a pension, that should be enough for them to be able to demonstrate the ability to repay a loan. No credit check loans are available for people with bad credit, even if they are unemployed.
0 Comments
Leave a Reply. |