It is a known fact that 34 percent of American adults have taken some sort of personal loans at some point in life. This reflects a huge number; and so if you’re planning to take a loan, you are not alone. Once you decide to take the loan the first thing you want to ensure is that you have a good credit score. It is going to be really hard to get a loan if you have a bad credit history. It is good to know your credit score before you even approach a lender for financing.
FICO is the company responsible for developing the credit score. They have classified people in five categories. To be in top three you will need to have a score of 630 or above. If you have a score lower than the 630, your personal loan applications will most likely be rejected. There is still hope as you can apply for the no credit check loan.
What is no credit check loan?
The name might have given you a clue already. This is a type of loan in which the lender will not check your credit score. If you have a bad credit history, there are ways to improve it but it will take a long time. In case of urgent need of the money, your only option will be the no credit check loan.
Why no credit check loans?
Bonsai Finance believes that the credit score does not represent a person, credit checking will delay the loan, and checking credit score multiple times can negatively impact your credit score. It is really easy to get this type of loans as you can apply by visiting the company office or even make your application online. Less paperwork is required as compared to the bank.
Benefits of no credit check loans:
There are certain benefits associated with the no credit check loans and some of them are given here.
- This loan can help you improve your credit history. If you have taken the loan and you will give it back on time, it will improve your credit score. It will show that you are reliable now. In case you have paid back this loan on time, you can get more loans as the most recent loan is more valuable in the eyes of banks.
- There is no need for collateral while taking the loan. This means if you are fully broke, you can also take this loan and fulfill the essential needs of your life.
- The company is not concerned about how you will spend this money. Banks are concerned if you take up business loan and use it for personal purposes. There is no restriction here.
- You can pay back the loan in installments. There is no need to pay all the money one time as most companies will offer you to pay back this loan in installments from 2 months to 2 years.
- You will not have to wait for a really long time as most companies will give approval in one day. You can apply in the morning and get the loan by evening. It is not possible with the banks.
- This type of loans has less interest rate as compared to the payday loans and credit cards.
- You can apply online in most cases as all the process will be done online. You will sign the agreement online and the money is deposited to your bank account. In case you have the bank account blocked, money can be sent by money transfer exchange.
- You will get the loan even when all other sources have refused to give loans and you are stranded.
- This type of loans is perfectly safe, contrary to the belief that these loans can harm you. Even this loan is helping you improve credit score.
It is evident that no credit check loans are safe and reliable. You can get this loan when others refuse to give you a loan. They have less interest rate and can be taken in less time as compared to other types of loans. You can also try to improve your credit score.