Reviewing No-Credit-Check Online Loans: A Guide For Every New Applicant!

May 22, 2020
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Paul Petersen
Posted in Finance
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Financial situations are often hard to predict. For various reasons, you may end up with many unpaid bills & dues, small outstanding debts, or may simply need money for financing a decision. Instead of asking around or looking for a loan officer, how about going for a no-credit-check online loan? Used effectively and only in times of need, no credit check loans can be extremely handy. In this post, we are doing a quick review for new applicants.

Process, loan amount & term, and requirements

True to the name, no-credit-check online loans don’t require you to visit a bank or lender. You can check for websites, which can connect you to direct lenders, and approval usually takes less than one business day. With such online personal loans, you can borrow anywhere between $100 and $15,000, but for loans up to $5,000, approvals are easy. The term of the loan may vary, but doesn’t exceed 5 years. Requirements are basic –

The applicant needs to be an adult, aged 18 and above
The applicant must have an active US bank account for receiving money and scheduling repayment installments.
The applicant must show a proof of income
The applicant shouldn’t have existing online loans

Credit score and beyond

Lenders don’t typically evaluate your credit score for approval, and it is possible to get a loan with rating as low as 500. You can, however, use no-credit-check online loans to build your credit score. If you repay the loan installments on time, it can help your rating. Lenders don’t consider the credit score, because they are interested in other things, such as your income, education, and nature of job.

Factors to know

Keep in mind that no-credit-check online loans can be expensive. The APR is high, and there is a must-pay processing fee involved. Make sure that you use such loans carefully and only when you need one. Are no-credit-check online loans better than payday loans? Yes, because you have more time and flexibility to repay the money. Do not take the option of such loans for granted. If you fail to repay the loan, your credit score will get affected, and getting a second loan can be hard.

Check online to find websites that connect you to direct lenders, so that you can have a fair idea of the process and getting approved. Read reviews of lenders, pros and cons before you apply for no-credit-check online loans.