Unsecured Personal Loans with No Credit Check: Why They Make Sense
The idea of getting unsecured personal loans with no credit check may seem far-fetched, but they are sound financing options. Just by meeting the right criteria, much-needed funds can be accessed.
By ignoring the credit history of an applicant, it effectively means that the lender is accepting a high degree of risk. However, it also means that applicants can look forward to a guaranteed fast approval process, though the outcome itself can only be guaranteed if all of the criteria are met.
The chance to gain access to an unsecured personal loan and the necessary funds to handle existing debt issues, is highly attractive. But as with all forms of financial matters, it is important to take a cautious approach.
How No Credit Checks Work
It is understandable if the idea of getting approval on unsecured personal loans with no credit checks seems too good to be true. For many of us, having a poor credit history stops us from even looking for loans. But so long as the necessary criteria are met, and the accompanying compromises are accepted, it is possible to secure funds.
The compromises are fairly straightforward, but must be accepted if there is to be any chance of getting the green light. For a start, the interest rate charged by the lender is higher, while the loan limit is often quite low. Typically, lenders will provide $1,500 to $3,000, though sums as high as $25,000 are available with specific terms.
While guaranteed fast approval cannot be relied upon, the assessment process is much faster because credit histories do not need to be checked. Still, it is worth noting that these unsecured personal loans are likely to be expensive over its lifetime.
Loan Types to Consider
The principal source of unsecured personal loans, with no credit check to worry about, are payday loans. They are usually limited to between $250 and $1,500 with a repayment term of as little as 30 days. The money can be used to clear some emergency debts fast, but repayment is taken directly out of an upcoming paycheck, so the loan needs to be kept small.
As long as sufficient income is confirmed, guaranteed fast approval means that emergency financial situations can be dealt with within 24 hours. For example, a final notice on an outstanding bill or debt can be paid off. But that is really as far as it goes, and larger sums require other arrangements.
For larger sums, like $5,000, it many be necessary to negotiate a deal with the lender and agree repayment over 90 or 120 days. But for large unsecured personal loans, like $20,000, there can be major compromises to make. Sometimes, a family loan from a family member is the best choice.
Finding the Best Terms
Of course, not every lender will provide unsecured personal loans with no credit checks. This is understandable, given the degree of risk involved. The best place to search is online, with most lenders there specializing in loans to people with poor credit histories.
Of course, despite the attraction of guaranteed fast approval, it is important to consult the Better Business Bureau website before agreeing any loan deal. Taking time over available options is a good move, and when dealing with an unsecured personal loan with rather high interest rates, it is essential to make the loan deal as affordable as possible.
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ABOUT THE AUTHOR
Devora Witts is a certified loan consultant who helps people get approved for Loans for People with Bad Credit and Bad Credit Mortgage Loans. To get aid with your financial situation you can visit her at http://www.badcreditloanservices.com