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Personal Loans With No Credit Check: Tips To Secure The Larger Sums

Skipping credit checks in the loan approval process is good news for bad credit borrowers. But applications for personal loans with no credit checks are not destined to succeed. Sometimes a little help is needed.

When applying for a loan, credit scores have a much smaller influence over the approval process than most people realize. Some lenders have even formulated loan packages that are ideal for bad credit borrowers, and ignore credit history. Unsurprisingly, offering personal loans with no credit check has been received extremely well.

There are several clear advantages for both lenders and borrowers in offering a loan without first checking out their credit history, but unfortunately a guaranteed loan approval is not one of them. There are criteria for applicants to meet, basic though they might be.

This is because the key factors that secured approval are based on income and debt-to-income ratios, not credit scores. But if the criteria set are satisfied, then getting the personal loan becomes extremely likely.

How No Credit Check Loans Work

Normally, credit checks are an important part of the loan approval process. But lenders can offer personal loans with no credit check for a number of reasons. First and foremost is the fact that credit scores are not seen as essential anymore, so ignoring the scores is fine.

There are two reasons why low credit scores need not receive too much attention. The first is that often the score itself is inaccurate, with credit agencies failing to update the scores as regularly as they should. So, when it comes to applying for a personal loan, they are misrepresented.

The second is that low scores no longer reflect bad money management. In fact, most bad credit borrowers have seen their credit rating fall as a result of bad financial luck in the economic emergency of the past four years. So, applicants who seem to be high-risk, are actually trustworthy borrowers. By removing the credit check, these applicants are given a fairer chance, though not quite guaranteed loan approval.

Benefits to the Borrower

There can be no surprise in the popularity of personal loans with no credit check. Lenders benefit through charging higher interest rates that lead to greater profits. The vast majority of borrowers repay their loans on time since they have more to benefit by rebuilding their credit rating.

But for borrowers, the benefits are not just about rebuilding their financial credibility. The approval time for a loan application is slashed, and while guaranteed loan approval cannot be provided, the chances of success are much higher when income and affordability are prioritized.

Also, by providing a faster and more assured loan approval process, the stress level amongst applicants falls dramatically. Getting a personal loan has become easier, and as such there is a way out of financial problems.

Improving Approval Chances

As already mentioned, offering personal loans with no credit checks is no guarantee of approval. Lenders want to be sure that the repayments will be made, and in most cases have set strict criteria to weed out the best borrowers. However, providing some kind of security can always help.

Most of the time, the loan limit is very low, usually no higher than $1,500. This would be enough to deal with one or two small debts, or cover a minor financial emergency, but little else. And with no guaranteed loan approval, providing some security, in the form of either collateral or a cosigner, can seal the deal.

Collateral provides the lender with a source of compensation should the borrower default on the personal loan, while a cosigner is a guarantor who promises to make the monthly repayments should the borrower be unable to. In both casesArticle Submission, a larger loan can be secured.

Article Tags: Guaranteed Loan Approval, Personal Loans, Credit Check, Credit Scores, Approval Process, Guaranteed Loan, Loan Approval, Personal Loan

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Lara Sawyer is the author of this article. She works successfully as a financial advisor with years of expertise on Bad Credit Loans Guaranteed Approval. She publishes informative articles about Guaranteed Bad Credit Loans, home loans, credit cards, auto loans, business loans and others at

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