If you are among the many individuals who have a history of bad credit, getting a loan is a problem. Fortunately there are still options left for people with a bad credit history.
Just like any product or service, no credit check financing has its cons and pros. The good news is that the pros outweigh the cons.
What are the advantages of no credit check loans:
- The loans are usually approved fast. This is good especially if you need cash fast.
- The requirements are few compared to a secured loan. The usual requirements are that you have a bank account, of legal age, and you have a stable job for a minimum of 6 months.
- There is no possession at risk. No collateral is lost in case the loan defaults.
- Interest rates are fixed which makes repayment easy to budget.
People are willing to disregard the cons especially if they need the money in an emergency.
Here are the disadvantages:
- Due to its nature, most loans can only approve small amounts. Since no collateral is included in the agreement, large amount of loans are risky.
- Higher interest rate usually is applied on a no credit check financing.
- Since the lender is vulnerable to default they prefer to shorten the term.
No credit check financing can also be used not only in emergency situations. You can use it to buy high priced product or service. Try going in a jewelry store and ask for a no credit check jewelry financing. This allows the business to still offer their products to people without the need for an immediate large amount of cash. When you apply for a loan like this, approval is very fast to avoid the hassle of waiting for customers. They can take the jewelry home within the same day.