Getting Personal Loans with No Credit Checks: Facts Worth Knowing
The fact that it is possible to get personal loans with no credit checks means even applicants with terrible credit histories are assured of funds. But no credit check does not mean guaranteed funds.
That in itself can be another challenge, with traditional lenders almost certain to reject an applicant with a bad credit history. But online lenders are more open to this niche of the market, and while falling short of guaranteed loan approval, at least have a greater likelihood of granting approval.
There are, of course, criteria and conditions to consider that make the whole transaction more realistic. It may seem that such personal loans are a matter for the imagination, but the right boxes need to be ticked before there is any chance of getting the loan needed.
What Does No Credit Check Mean?
Normally, when a lender is considering a loan application, they will check out the credit history of the applicant so as to ascertain how likely he or she is to meet the repayment schedule without a hitch. By offering personal loans with no credit checks, the chance to assess the applicant in practically gone.
Without any security, the lender is likely to do two things: firstly, raise the interest rate; and secondly, set a pretty low loan limit. Both of these moves are designed to restrict the potential loss they might suffer as a result of lending without knowing the credit history of the borrower.
The payback for the borrower is a close to guaranteed loan approval, though there remains some criteria to meet first. But issues in the past, including bankruptcy and loan defaults are ignored, allowing the applicant a chance to use the personal loan to rebuild their credit status.
Available Loan Options
The restrictions set by lenders are not necessarily iron-clad - that is to say, getting large personal loans with no credit check is possible. Normally, the loan is restricted to between $1,500 and $3,000, depending on the lender and the agreed repayment schedule, while the interest rate can be higher than normal.
But these loans are all unsecured, so if some kind of security can be provided then the limit can be raised considerably. In fact, while guaranteed loan approval might not be offered because of a need to prove an ability to afford repayments, any loan application with collateral is much easier to get.
For example, if $50,000 of home equity is offered as collateral, then a personal loan of $50,000 can be secured; or if the family car is worth $20,000, it can be offered as collateral on a $20,000 loan. But remember, that failure to make repayments will mean that security is lost.
Finding the Right Lender
Not every lender is willing to offer personal loans with no credit checks, but those that do are experts in lending to people with very poor credit histories. For this reason, the deals they provide are set to be the best around.
For the most part, however, it is important to check out the reputation of any lenders, especially when they are found on the internet. Online lenders are known to offer great deals, including near guaranteed loan approval, and it is well worth the effort in searching online.
Still, be sure to check them out with the Better Business Bureau website before signing up to any personal loan agreement with them.
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ABOUT THE AUTHOR
Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loans for 5000 and Bad Credit Student Loans Guaranteed. For more information about his services please visit him at http://www.accessmyloan.com