No Credit Check Loans
While personal loans with no credit check are attractive to people with bad credit or with no credit history, they can also provide fast cash for a short term for borrowers with no credit woes. The reason for this is the way that credit bureaus calculate their scores.
Most people do not realize that lender requests for credit reports can actually have a negative impact on credit scores. Requests from multiple lenders can lower a credit score by several points. Short term loans which are repaid on time have no impact on credit scores since lenders do not request reports from credit bureaus. A personal loan with no credit check does not have any effect on credit scores as long as the loan is paid on time. When the need for cash is short term, cash loans may provide a good option.
Short Term Loans
No credit check payday loans are usually for terms of between 14 and 30 days, basically until the borrower receives their next paycheck. Some lenders may provide loans of up to 90 days without a credit check and repayment options vary between lenders. Very short term loans are usually paid in full with interest on the due date, but 90 day loans may offer installment payments. The loan amount is based on the borrower’s income and is generally equal to no more than 2 weeks salary. Maximum loan amounts are between $1000 and $1500.
Conventional Loan Fees and Penalties
Although the interest rates on no credit check loans are higher than those of longer term conventional loans, there are no loan origination fees or other costs for loans. Conventional loans usually have terms of at least one year and prepayment penalties may apply if the loan is paid off before the final payment is due. When a borrower needs cash quickly for a short period of time, short term loans may actually be a better option since the higher short term interest rate may be offset by the fees and penalties charged on conventional loans.
Getting Cash Fast
One advantage of short term loans is speed. The application and approval processes are simplified so the money is usually available the same day, often within an hour of the loan application. Applying for loans no credit check required makes the loan approval faster and the majority of applicants are approved. The requirements for applicants are usually just 3 months employment at the same job and an active checking account. The application can be completed online with the funds direct deposited to the borrower’s checking account.
Short term loans with no credit check can provide fast cash to meet short term financial needs even for people with good credit. If the need for extra money is small and short term, cash loans may have advantages over conventional loans. No loan origination fees or prepayment penalties can make these unsecured loans an attractive alternative for fast cash that can be quickly repaid.