Are you currently looking for guaranteed loan approval but can’t find a supplier due to your bad credit history?
If so, you should consider a lender no credit check loans. These types of lenders will evaluate other areas of your financial profile when deciding whether or not to approve you, such as your income, employment status, and loan repayment history.
If this sounds like something you are interested in exploring further, keep reading this article and learn about the best deals for loans no credit check loans in 2021 and how you can improve your bad credit rating.
In addition to listing a number of the best vendors currently on the market, we also discuss how the end-to-end non-credit check process works and what you need to do to ensure you don’t end up paying extortionate interest.
What is no credit check loans?
As the name suggests, no credit check loans refers to a funding application that does not take into account your FICO credit rating.
In fact, when lenders are deciding whether or not to approve your application, they won’t do a credit check at all.
This is especially useful if you currently have a bad credit history, not least because traditional lenders usually deny you based on your less than ideal FICO score.
Instead of looking at your credit report, a non-credit check lender will consider a number of other factors, such as your income and employment status.
This means that as long as you have a stable income and the lender is confident that you can afford to make the minimum weekly / monthly payments, you should have no problem getting approved – regardless of your credit rating.
However, this, of course, comes at a price.
In exchange for providing you with a guaranteed loan approval without a credit check, lenders will charge you an interest rate per annum, which is significantly higher than that of a regular bank. In fact, if you choose a payday loan without a credit check, you will pay at an average annual rate of 400%.
It is also important to note that some providers charge a surplus of 1,000% per annum, so it is very important that you understand how much you are paying before processing your loan application.
What will lenders ignore when considering my application?
When traditional lenders consider an online loan application, they usually use three main credit rating bureaus.
All of this information will subsequently give you your FICO credit rating, which most lenders use to determine whether or not to give you a loan.
However, credit checkers do not use the three main rating agencies when evaluating your application. Instead, they will use secondary sources in an attempt to validate the information you provide in your application. With that said, we have listed the main factors that lenders will overlook when filing an application.
First, credit check lenders most likely won’t ask you to have a steady income. In the vast majority of cases, this should be in the form of permanent employment. However, some lenders will look to you if your main source of income comes from other sources, such as benefits, disability benefits, or pensions.
Your employment status
The lender will also want to know what your current employment status is. This applies to full and part-time employment, as well as self-employment.
Since each state in the United States has its own laws regarding lending practices, the provider of an unchecked loan will want to know where you are. In some cases, the lender will not be able to offer you a loan if you are in a state that prohibits payday loans. In addition, it also depends on your location, how much interest you pay and whether you need to meet the minimum monthly income.
While no lender will use the three main lending agencies, they are likely to use secondary sources to assess your credit history. This will not be done for the purpose of obtaining your FICO credit rating. Instead, it will be to find out if you have paid off loans before.
Most lenders will ask if you own or rent your home. If it is the former, it will increase your chances of being approved by a lender and will likely lead to a better annual interest rate.
What types of loans no credit check loans are available?
In the vast majority of cases, credit check loans are not available in two main forms – payday loans and installment loans. Here’s what you need to know.
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A payday loan is a type of short-term loan that you have to pay back the next time you get paid.
- For example, suppose you receive your monthly salary on July 4th.
- On July 20, you don’t have enough money, so you decide to take out a payday loan.
- You borrow $ 300 and agree to pay back the next time you receive your monthly salary.
- You will be paid on August 4th, and then you will return the borrowed $ 300 plus interes
An installment loan is a traditional personal loan that is issued for a longer period of time. An installment loan usually allows you to borrow more than a Payday loan allows.
- For example, you need to borrow $ 6,000 to pay for a new car.
- You use a lender no credit check loans and agree to repay the money within 5 years.
- Every month you make a fixed payment that includes an annual interest rate.
- After 6 years of paying monthly payments, you have completely repaid the debt.
How can I get an online loan without a credit check?
In short, the non-credit check loan process works in much the same way as any other lender operating in the online space.
However, if you have never gone through this process before, we have listed the basic steps you need to follow below.
Step 1. Find a non-credit check lender
First, you will need to find a non-credit check lender that suits your individual requirements.
Further down the page, you will find five of the best non-credit check lenders currently working in the field.
Step 2. Run a loan application
Once you have selected your preferred loan provider, it is time to apply online.
Initially, you will need to choose how much you want to borrow and for how long. Then you will need to enter some personal information.
This will include your full name, home address, telephone number, date of birth, social security number and, if applicable, your driver’s license number.
Step 3. Enter your financial information
While you do not need to enter information related to your FICO credit rating, you still need to inform the non-credit checking lender of your financial situation.
Typically, this will include your current employment status, monthly income, home ownership status, and if you currently have any other outstanding loan products.
Step 4: Assess Your Loan Offer
After you complete the loan application process, which usually takes no more than 5 minutes, the lender will let you know if you are approved.
If so, you will be able to view your loan offer on the screen. This will include your annual interest rate and whether or not you need to pay a clearance fee
Step 5. Enter your bank account details
The final step in the loan process no credit check loans is to enter your Account Verification Details.
This must be the bank account where you want to deposit your credit funds, which will also be required to create an automatic debit agreement. This must be the bank account from which you plan to make payments.
Finally, once all of the above is done, you should receive your loan funds within 1-2 business days, depending on the lender in question.