No Credit Check Loans: A Help for Troublesome Times - PowerPoint PPT Presentation

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No Credit Check Loans: A Help for Troublesome Times

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When in a financial emergency, would you choose a loan that’s less likely to be approved? Here’s why No Credit Check loans thrive despite a higher cost. – PowerPoint PPT presentation

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Date added: 29 July 2020
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Provided by: cashamericatoday

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Title: No Credit Check Loans: A Help for Troublesome Times


1
No Credit Check Loans A Help for Troublesome
Times
There's no doubt that No Credit Check loans are
among the higher cost loans out there. What makes
them still so prominent and widespread? Isn't the
cost of the loan what makes them unattractive to
people? Clearly, the market is proving since
years that that's not the case. While loans that
people use to fulfil wants and aspirations (like
car loans and home loans) are to a huge extent
affected in demand by their cost, the same does
not seem to stand so true for loans that serve
people in urgent needs of funds for various
reasons. When in such a situation, options can be
limited for a lot of people. Quick loans and
borrowing from friends/family seem to be the
available solution but not many wish to choose
the latter and especially not after having done
it once or twice before. Hence, quick loans are
increasingly being the most preferred choice and
as you read ahead, you shall see that a lot of
people do not tend to have a strong credit
history, making No Credit Check the only
available quick loan option that can to an extent
be relied upon. Why do so many Individuals have
Poor Credit Scores? Roughly half of the
millennials in the US do not have a healthy
credit score. People outside of that group are a
little better off but not by a huge number. What
leads to this? Let's take a look at the top
reasons 1. Poor understanding of the credit
system Not knowing how to prioritize payments
and not knowing when shutting down a credit
account (eg. Credit card) can actually be harmful
for the credit scores, is an easy way to lose out
on your credit score. 2. Using one credit card
for everything If you have and use just a single
credit card for everything, use it to a high
percentage of its limit and don't repay it fully
each month, there's a significant hit that you're
causing to your credit score. 3. Not checking
and acting upon errors The credit system is
complex. Once a year, you can check your credit
report free of cost and repercussions. It is
important to do so and apply to correct any
issues and errors you find. Errors are common and
corrections are also often done when requests are
legitimate. 4. Not knowing what all gets
featured on a credit report Many do not know
that even applying for a loan that gets rejected,
hits the credit score. That's just an example of
many other things that make up the credit
score. Here's a link you could use to understand
how to improve your credit score. Are No Credit
Check Loans Faster? Credit check is just like any
step of the loan approval process - it takes
time. When one step is skipped, time is saved.
However, there are other things that need to
compensate for what the credit check does. Being
a short term loan, these are typically steps that
do not take much time, hence No Credit Check
loans still tend to be faster. The other thing
that makes these loans faster in general, is that
they're non-bank direct lender loans. Their
processes seem to be simpler and quicker in
general but this of course varies from lender to
lender, and so does the speed and consistency of
loans disbursement. We have a few suggestions
that can help you get loans quicker, if that's
what you need
2
Keep all the documents and details ready
while applying Provide complete information
and try to ensure it's all easy to verify
Provide good quality scans of documents when
applying online Ready reviews about your
lender to understand if they're fast at
processing loans Apply for only as much as
you know you can really repay and it's likely
that the lender would make similar assessments
and process you loan so you don't have to reapply
elsewhere and waste time that way. How Much
Costlier are these Loans? Loans and their
mathematics are not designed to be very easy to
understand. It's hard to compare the usual bank
and credit card loans with the non-bank direct
lender loans which come with APR disclosures and
simple interest while the former typically charge
compounded interest. In the simplest of terms,
what I can say is that in less than a year's term
a significantly higher APR loan shall have a
significantly higher cost irrespective of the
type of interest being charged. Beware of loans
that charge interest monthly - these shall have a
many times higher APR (which is Annual). Being
very short term loans, No Credit Check loans have
a high rate of interest but if your loan term is
short enough, the final amount you end up paying
quite a small amount at times. The only real way
to know how costly a loan really is, is to find
out the final cost. One piece of advice here is
to stay totally away from loans that you may fail
to repay on time. Loans get very expensive if you
cross the stipulated repayment schedules.
When should one avoid No Credit Check Loans? No
Credit Check loans are higher cost loans which
are intended for emergencies and other sudden
needs. These are also essentially short term
loans which are not intended to be designed as a
replacement for bank loans or other conventional
loans like home loans, car loans, etc. They have
their benefits but used wrongly, they can be very
expensive and damaging too. While it is virtually
impossible to make an exhaustive list of every
situation in which such loans should be avoided,
here are a few which should help understand the
idea well 1. When you're in a long term need
It's simple - do not take a high interest rate
loan for a long period of time. It will be more
expensive than is reasonable. These loans are
intended
3
to be short term loans and even the idea of
repeatedly renewing them to use them for a long
term could be disastrous. 2. When bank loans
are available and can serve you If you're not in
too much of a hurry and bank loans are available
to you, it should not be a problem to choose that
option - they would tend to be less expensive.
However, if what you specifically need is a very
short term loan, you may have to do the
mathematics to understand what's less
expensive. 3. When your credit history is
great and there are other quick enough options
available There are other quick loan options out
there. Some banks offer pre-approved loans to
their long term customers, which are fairly
quick. If credit history is not a problem in your
case, you must first consider those options which
may come at a lower cost. 4. When you find a
lender whose offer seems illegitimate Some
lenders can be hard to verify for legitimacy.
Sometimes the offer and their missing online
presence should be a giveaway and it's good to
look for safer, genuine lenders while taking a
non-bank direct lender loan. I share links of a
trusted lender at the end of this article. 5.
When you're nearing bankruptcy Since the loans
are intended to be quick and with minimal checks
and verifications, you're the one who needs to
know that bankruptcy isn't near when you take
this loan. Unlike loans with collaterals and bank
loans, bankruptcy cannot be used to close these
loans and the penalty of non-repayment will just
keep piling up if you hit bankruptcy with such a
loan still outstanding. 6. When you're already
in a lot of debt and didn't think your decision
through Many borrows stuck in a debt cycle
resort to No Credit Check loans. There are ways
to use such loans to escape the debt cycle but
these are not easy to calculate and it's
definitely not great if things go south from
there. Employing a debt consultant for help at
such a time may be helpful, if you are not sure
you're getting the mathematics of it right. Is
the "Guaranteed Approval" Real? Many No Credit
Check loans claim to offer a "Guaranteed
Approval" on the loan. While this claim seems too
good to be true, there's more to it than meets
the eye in the first glance. I have read into the
finer lines of many such loan offers and also
spoken to some past borrowers and here I shall
share what it truly means - which can vary a
little from lender to lender but at a broader
sense, remain fairly standard. The first thing to
keep in mind, is that lenders of the No Credit
Check loans being non-bank entities, are able to
offer a very flexible sum of amount. Some lenders
can choose to offer loans for as little as 100.
Maybe even lower but I didn't find any such
mention. The second thing is that the marketing
and terminology is worded in a way that it
assumes qualification for the loan. If you do not
qualify for their loan i.e., if you do not meet
their eligibility criteria, there's anyways no
question of an approval. This also encompasses
what amount you shall be eligible for
borrowing. Given these facts, it is fair to state
that provided you apply for your loans of an
amount that their eligibility criteria can
accommodate and provided that you meet the rest
of the eligibility requirements, your loans shall
be approved with certainty. The catch here is
that it's hard to know for sure, what amount can
be approved. Some lenders tend to make
counter-offers to borrowers when they deem the
borrower ineligible for the amount that's being
applied for.
4
Conclusion Loans are available in so many ways
and forms with so many labels today, that it gets
confusing these days for the borrowers. No Credit
Check loans also come under multiple labels and
are typically offered by non-bank direct lenders.
Being riskier for the lender, they tend to be a
higher expense loan but the government
regulations ensure transparency by mandating APRs
to be disclosed and by eliminating compounded
interest which tends to make lower interest rates
far more expensive over time. The other advantage
can be the very short term - which can be useful
to many borrowers. One of the reputed and
experienced direct lenders offering such loans is
CashAmericaToday. You can check out these pages
to find their longer term online installment
loans with no credit check and shorter term
online cash advance with no credit check.
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