The greatest financial pressure rarely comes from the long-term debts that have been accrued, but usually by the unexpected expenses that crop up without warning. These make finding cash fast a priority, and when bad credit scores are involved then securing personal loans with no credit checks becomes necessary.
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The challenge in finding a lender willing to grant loans to individuals with extremely poor credit histories is not easy. While applicants with scores of between 580 and 650 might be accommodated by traditional lenders, anyone with scores of less than 580 may find it very difficult – especially when in need of fast loan approval.
But lenders who offer approval processes with no credit checks provide fast access to personal loan funds, and ensure even those with terrible credit scores have a chance of securing the cash they need to deal with financial emergencies.
Meet The Necessary Criteria
There are a variety of advantages to getting a personal loan with no credit checks (see below) but, to access them, it is necessary to meet basic criteria first. There is no surprise in these criteria, with the law stating only individuals aged 18 and over can get loans, while applicants also need to be US citizens or be a legal long-term resident.
Perhaps the most important condition is that the applicant is in full-time employment and has held that job for a minimum of 6 months prior to submitting the application. And while taking no time to carry out a credit check means fast loan approval is more possible, there is a need to prove affordability.
If the job held by applicant is well paid, their cause is helped greatly. But affordability is proven only when the excess income confirms that the repayment on the new personal loan can be made comfortably.
Advantages On Offer
When a financial emergency strikes, the priority is time. Usually, applying for a loan involves submitting the application and waiting for at least 24 hours, but up to 72 hours, to receive news on its approval or rejection. Getting a personal loan with no credit check means the waiting period is slashed to just a few minutes.
This is because the process involves the use of computer programs that calculate the terms of the loan, assessing affordability based on the information provided. This can be done in a matter of seconds, while some minor issues available via your Social Security Number is checked too.
Because there is no credit check carried out, time is saved and the chance of a fast loan approval is good. However, there are some negatives to consider too, especially when the most common personal loan available with these terms is the payday loan.
Payday Loans: Points To Consider
The chief advantage of a payday loan is not that approval is available within minutes, but that approval is almost guaranteed. After all, when seeking a personal loan with no credit checks, the only information that really matters relates to the income the applicant has.
A payday loan is granted solely on the back of the income due in the next paycheck because the loan is usually repaid in full with a single payment directly from that paycheck. Basically, the loan figure is as much as or less than the paycheck – with interest in the calculations too, of course.
Fast loan approval is fine, and even with terrible bad credit scores it is probable, but the compromise is that a very high interest rate (35%) is charged, and the repayment term is very short (14-30 days). What is more, the available sum is low, with most payday loans limited to $1,500. It means this personal loan option is ideal for emergency repayments, but at a very high cost.