It is impossible to predict the future, and no matter how hard you may plan or try to get things in perfect financial shape for your family, there may be emergencies or situations that hit you out of nowhere. For some, the only options for financial support come from no credit check loans. Contrary to what you may think or what you have heard, this lending option might be just what you need.
Your Other Alternatives
Medical bills or a blown transmission aren’t things that people plan into their monthly budget, yet they can become very real expenses that need to be paid. It is hard to walk into a bank and ask for an application for a personal loan for several hundred dollars. Not only is it impractical, but the chances of approval for those with bad credit are very small. Your employer may also be a dead end with financial help, as few offer paycheck advances. Your extended family or friends may have their own financial struggles and even if willing would be unable to give you the funds you need to get out of a bind.
If this sounds like your situation, no credit check loans in Canada are a solid option. While not an option that should become a way of life, these loans can meet an immediate expense and relieve the stress of the unexpected. For those with poor credit or no credit, this unconventional lending may be your only hope.
Your Credit Worthiness
Lending of any kind impacts your creditworthiness. Even with bad credit loans no credit check is needed, a potential lender looks at your ability to pay back any amount that is borrowed. Creditworthiness is more than just a credit report or payment history. While credit scores may seem to be what traditional lenders make their application approval decisions on, these institutions also look at income and debt-to-income ratios. Lenders who don’t put an emphasis on your credit history, such as no credit check lenders, focus on repayment likelihood and ability.
Fast cash for unexpected expenses has value to you, but your lack of creditworthiness may be a source of value for the lender. The risk that a lender takes on is made up for in higher fees and interest rates, as well as very strict loan terms. This is why no credit check lending shouldn’t become a habit. A lifetime of high-interest rate finance charges will do a number on your bank account. However, the possibility of being approved for fast cash to address your car repair could be worth the investment in the present.
Your Loan Application
When you need access to cash and don’t have a good credit score, there are several lending options you could pursue. Though you may not be required to consent to a hard inquiry on your report for the traditional FICO score, there is an application process you generally have to complete. Fortunately, much of this documentation and supporting information can be filed completely online.
First, you need to decide what loan option you want to apply for:
1. Payday Loan
With this short-term, unsecured loan, a lender issues a small amount of money, usually based on the expected value of the borrower’s next paycheck. Sometimes called a payroll loan or cash advance loan, the lender issues the funds and receives payment plus interest and fees on the borrower’s payday. These loans could however have an APR as high as 272.39%.
2. Secured Loan
With a secured loan, there is some sort of collateral at stake for the borrower. The lender may take a car title as security for a loan, though the issued amount will not exceed the value of the car.
3. Guarantor Loan
To raise your chances of approval, you can ask a creditworthy individual (friend or family member) to submit to the credit check and guarantee the loan. Though this could bring down your interest rate, it impacts your co-signer's credit if you default on the loan.
To complete an application for a no credit check loan, you need your personal identification information, paystubs or bank statements, and the banking information concerning repayment to the lender. Lenders require automatic drafts on repayment in order to reduce the risk of nonpayment. Watch the terms of the loan carefully to avoid surprise fees or processing charges. It is important to compare different lenders because of the fee and interest rate variations. These can end up costing you much more than you had planned or can easily afford, however badly you may need the funds.
Your Loan Approval
When you are out of options, getting approved for a quick cash loan could be the answer to an unexpected problem. At LoanConnect, you can find the best loan rate for whatever financial situation you are facing. Apply today and get matched with a potential financial services provider.
