Short Term Personal Loans that Skip the Credit Check Process - PowerPoint PPT Presentation

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Short Term Personal Loans that Skip the Credit Check Process

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Some short term personal loans can skip the credit check process, making them a faster and more easily available choice. Find out more about such loans here. – PowerPoint PPT presentation

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Date added: 10 August 2020
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Title: Short Term Personal Loans that Skip the Credit Check Process


1
Short Term Personal Loans that Skip the Credit
Check Process Loans serve many purposes in
people's lives and since the time that banking
has existed, loans have not just been around but
also evolved to be safer, quicker and of many
kinds. Loans however are not always attainable
for everyone. Apart from just being a settled
adult, having a constant income and having all
documentation that a loan may require, there's
also the credit history that matters. Credit
history today, is primary represented by scores
(credit scores) which are maintained for each
individual. When one applies for a loan, apart
from this score, typically also the credit
history is viewed as maintained by the
organizations that provide the credit
scoring. There are some loans however, that can
skip the credit check process and some that even
stay unaffected by the credit score. These tend
to be different types of short term personal
loans.
Understanding why Short Terms Loans can Skip the
Credit Check Process The credit history and score
are important risk indicators for a loan lending
company, during a loan lending process. However,
these are not the holy-grail for some types of
loans. When you apply for a shorter term loan,
what typically matters much more than the credit
history is the current income and upcoming
payments of outstanding debts. These are factors
that the credit score and history cannot clearly
indicate. For this main reason, it is less
practical to just consider the credit score and
history for a loan lending decision. Furthermore,
it is known that the credit system and scoring is
not a flawless process. Errors, inconsistencies
and missed records are frequent. Since many
years, over 30 of the US's borrowers suffer from
bad credit scores. A combination of all these
factors leave a window that's fulfilled well by
the No Credit Check short term loans. Are these
Loans Expensive? Loans and any other debt
product, get expensive with two factors
2
1. Risk for the lender, and 2. Demand in
the market.
Short term loans with a no credit check policy,
are high risk loans for lenders to be offering
and they are currently in a great demand
too. Since the lender is lending at a higher
risk, the expected returns ought to be on the
higher side too. The great demand allows for a
higher cost, hence these loans tend to be amongst
the higher expense loans products in the lending
market. Where to Find Such Loans? Short term
loans without credit checks available only
through direct lenders that are non-bank
entities. At the time of the writing of this
article, banks in the US do not offer such
loans. These non-bank direct lender loans can be
found through one of these three sources 1.
Online Direct Lenders The safest amongst the
four, dealing with an online direct lender for
loans tends to beneficial for customers because
of the immense competition as well as easy access
to other customers' reviews and experiences that
one can find before making a decision to take a
loan. CashAmericaToday is a prominent online
direct lender which offers bad credit personal
loans with guaranteed approvals and no credit
checks. 2. Mortgage Brokers These are
third-party entities that operate independently
and maintain a database of direct lenders. Many
of the lenders working with good mortgage brokers
could be offering No Credit Check Personal Loans
and the brokers would be able to help with such
offers. Due to a presence of a third party, there
are chances that a loan would be more expensive,
but many brokers tend to have a fairly safe
mechanism to select reliable lenders and this is
something that some borrowers find valuable. 3.
Other Direct Lenders Many direct lenders still
operate their services through pawn shops and
other physical stores or setups. Although the
demand for their services are dwindling, there
still exists a market that prefers the personal
interaction and physical paperwork, etc. Some
also run on the basis of relationships. How to
know that the Loan is Safe Safety of loans is
essentially seen in two ways 1. Safe decision
to borrow A loan is only safe to borrow, if the
borrower is sure to be able to repay it on time.
When loans cannot be repaid on time, they tend to
get more and more expensive. This however,
applies much more strongly to a loan that's
skipping the credit check process, because the
lender is skipping an indicator of loan repayment
tendency of the borrower. Plus the loan being
more expensive, any penalty on it is also bound
to be more expensive. 2. Safe loan source As
discussed in the previous section, there are ways
of knowing if your loan lender is reliable. This
is essential because short term loans with no
credit check are only offered by non-bank direct
lenders and there are some fraudulent lenders and
some non-genuine lenders out there in the
market. How to use Short Term No Credit Check
Loans to Improve Credit Score Short term no
credit check loans can be used with careful
calculation to improve credit score over time. Be
informed however, that if not carefully
calculated and meticulously done, such a plan can
go sideways terribly.
3
People who get it right, may use one or a
combination of these two steps/strategies 1.
Replace Conventional Loans with No Hard Credit
Loans For a limited duration of time, it can be
beneficial to take loans when you need, that skip
the Hard Credit Check. Hard Credit Checks are
done by institutional lenders like banks and also
some other lenders while processing a loan.
Multiple loans and even enquiries are bound to
drop your credit score. A No Hard Credit Check
loan on the other hand, does not affect your
credit health. 2. Maximize Limits and Reduce
Usage If you have an option to increase your
revolving credit limits like the limit on your
credit card, it makes it easier to use a smaller
percentage of your limit. Not exceeding 30 of
your credit limit over a period of time on such a
product helps you improve the credit score.
People working on this and in need to borrow
money while these efforts are in progress, often
opt for Bad Credit Loans from direct lenders,
which are available irrespective of the credit
score. Alternates to Loans People in an urgent
need of money, at times can use other ways to
borrow or generate money to fulfil the needs that
they may be looking at short term personal loans
for. The four most common ways are 1.
Borrowing from Family/Friends It comes probably
without a question that this practice is fairly
common despite the way it potentially and
commonly affects relationships and/or a person's
ego. Borrowing for friends and family members may
not be very reliable or healthy for
relationships, but the advantage borrowers tend
to find is that it doesn't usually cost money to
borrow - typically most friends and family
members do not impose interest on the borrowed
amount. However, if numbers are to believed, this
trend is reducing perhaps because loans are
becoming easier and more readily available. 2.
Online Paid Tasks Have you ever heard of Field
Agent, Foap, Fiverr and other such platforms/apps
where you complete tasks that suit you and earn
out of them? Some tasks on some of these
platforms do actually pay fair amounts quite
quickly but understanding those takes much more
than a day, which is why such services make sense
for mainly those who have been using them for
quite a while. Data says that one can expect to
earn roughly 60-90 in a day's work. 3.
Lending Apps Here's an option where caution is of
utmost importance. Borrowing from lending apps
can be fairly quick at times but since it's all
on the small screen of the phone, it's known that
many people tend to overlook the fine print and
that's what makes people often end up agreeing to
some very expensive terms and conditions.
Nonetheless, the convenience of such a service
had made it popular during the introductory
days. 4. Conventional Paid Tasks Provided that
one knows where to find these tasks readily,
tasks like pet sitting, babysitting, delivery
jobs, cleaning jobs and other such tasks can be a
useful solution to an urgent need of
money. However, if a personal loan is what you
are looking for, CashAmericaToday has ideal
options to suit most needs and you could follow
this link if you need money now.
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