Loans with No Credit Check: What They Are and Where Do You Get Them? What are “No credit check loans”? Do they actually exist? In this article, you’ll learn what is meant by “No Credit Check” Loan and how you can benefit from that and still save your money.

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You may think that getting a personal loan is impossible when you have bad credit or no credit history at all, but actually, you have a few options. It may not be easy, and some options are safer than others, but you can find ways with a little research. You may also find that these options can be expensive, so be cautious and only go for any of such options if you have exhausted every other means possible.

How does a loan without Credit Check work?

“No Credit Check” actually means soft check. To understand this, you have to know how hard check and soft check differ. A hard check means pulling and perusing a copy of your credit history, while a soft check merely returns a brief overview of a person’s records. Another key difference between the two is that hard checks reflect on your credit history, while soft checks don’t.

No-credit-check loans are typically short-term and you get the loaned money right away. Terms typically last two weeks or a few months, but can stretch up to two years; and if this is the case, APR or annual percentage rates can hit 400% or more, with finance charges going as high as 30% of the amount you borrowed.

To apply for a no-credit-check loan, be ready to at least confirm your identity, contact information, and bank account. They would most likely look for the typical requirements such as being 18 years old and above, citizenship details, and a reliable source of income.

What are examples of No Credit Check Loans?

Payday Loans. Lenders of payday loans do not run hard checks because they do not need to know your creditworthiness, they just need to be sure that they can collect, and they have your paycheck as collateral for that. Consider a payday loan as your last resort as there is a great possibility that you can’t pay off your debt by the next payout, resulting in rolling over your debt or re-borrowing. This will put you in a debt trap and before you know it, you are deep in debt due to the high APR and finance charges.

Collateral Loans. These are no-credit-check and long-term loans you can take by pledging collateral. A car title loan is a common example. This will allow you to loan against the value of the car. You must authorize the lender to take your car if you fail to pay off the debt. A car title loan is problematic, especially if you use the car primarily to go to work. If they take the car from you, your income may suffer.

Credit Union. You can take out a no-credit-check loan from a credit union where you are a member of. They usually offer loans to members and consider factors other than your credit score when evaluating creditworthiness. You can be a member of a credit union based on your employment, neighbourhood, and affiliations. You may want to ask your employer or a credit union near you to see if you meet the requirements for membership.

Where can you find lenders?

Before diving into an online search for lenders, consider going to your local credit union first to inquire. If that did not work out, the Internet is your next best option. There are online lenders that specifically work with borrowers with bad credit. Between the guy in your street corner with a placard and an online lender, the latter is most probably your safer bet. Always remember to check the credibility of the lender. An online search can garner comments and reviews, so make sure to do this before making any transaction. Check the Federal Financial Protection Bureau, as well, for an added layer of security.

This article originally appeared on Payment1.com.

A different Perspective?

A colleague was telling me how she was struggling financially and how many things, courses she’d like to have and places she’d like to visit. As I listened I was prompted to ask: Are you really that bad in handling money? She stopped and looked at me to which I heard myself saying: Money has no value unless it is being used, you don’t see the use or value of money unless through the energetic feeling you get when it produces those things you love having.

So how about generating more of the feeling you have when you are enjoying the places you like to visit and the courses you have done so far and the feeling when you received the things you now have and thank money for allowing you to stretch towards more of what you love.

I asked her: Has money ever failed to show up in your life? She looked at me and said: It always shows up. I said: well you are good with money then, otherwise if you weren’t it wouldn’t keep coming to you, you just have to acknowledge how good you are with money and enjoy being in its presence and let it enjoy your presence. How you dealt with money in the past was based on the knowledge and understanding you had back then, you are getting better in all your ways and dealings now because you have new information coming to you all the time.

My colleague was instantly edified and became enthusiastic about money and life and we both continued chatting about how grateful we are for all that we are learning each and every moment of our lives.

My Last Words

In all situations, there is always a way out and when you cannot think of one, please think about the last time you were in trouble or needed an urgent solution, did it come? Albeit not the way you envisioned but it did come, not early and not late and most of the time it shows up wearing overalls or looking like work and when you actually get into it, it turns out to be FUN!

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