No Credit Loans

Effective tips to obtain no credit loans

Are you suffering from the curse of poor credit? Or, don’t you have a credit history at all? Have no worry, you’re not alone. There are millions of Americans who suffer from the adverse effects of bad credit. Unhealthy credit rating badly affects an individual’s financial life, especially when he/she is looking for a loan from traditional lending institutions like banks or credit unions. If you’re also facing such a problem, you may opt for taking out a no credit loan. No credit loans are one of the latest offerings from the private lending institutions. These financial products are especially made to provide some financial ease to the bad credit holders. Traditional lenders generally don’t offer such loans. However, sometimes they do so, if the borrower can put up collateral.

Types of no credit loans

There are basically 3 types of no credit loans and those are payday loan or cash advance loan, auto title loan and pawn shop loan.

• Payday loan – This is a type of no credit loan that doesn’t run any credit check nor demands any collateral to use. This is a short term loan which is generally lent for 14 days to 30 days.

• Auto title loan – With an auto title loan, the borrower has to use his vehicle as the security for the loan. After paying back the loan on time, the borrower can get his vehicle back.

• Pawn shop loan – Pawn shop loan is another type of loan that you can surely opt for, if you have some saleable items that you don’t need right now. You can use that stuff as collateral and get a loan against it from a pawn lender. The lender will hold the stuff until you pay back the loan. But if you fail to pay back the loan on time, the lender can sell off the item to free up his money.

Steps towards getting no credit loans

Your poor credit profile doesn’t come in the way of getting no credit loans at all. Moreover, applying for such loans is simpler, if compared to traditional bank loans. Here are steps that would make the loan application procedure even easier.

1. Determine the type of loan – First of all, you must determine the type of no credit loan you’re looking for. If you want to go for a payday loan, just write a check for loan amount plus pre-set fees and interests to the lender. Once you pay back the loan on your next salary day, take your check back. But if you don’t pay the loan back on the due date, the lender may cash in the check. Payday loan would be perfect if you don’t have any asset to use as collateral. But if you own a car, you may opt for an auto title loan by using the car as the security. If you have any good, expensive and saleable item in your home, you may use it to borrow a pawn shop loan. All these loans are no credit loans that are offered without credit check.

2. Contact local lenders – The next step is to visit payday lender or cash advance lenders, pawn shops etc. in and around your locality. Compare the lenders, in terms of the interest rates, repayment schedule and loan terms they offer. Also, be attentive towards the fees they levy on late payment, early payment etc. You can also opt for online lenders for no credit check loans. However, if you want to deal with an online lender, make sure you check its reputation and legitimacy.

3. Fill out the application form – Once you choose the lender, the next step is the fill out the application form. Whether you apply with a lender at a physical site or online, you will need to furnish some important and relevant documents to prove your identify and your financial status. As identity proof you can use driving license or government issued ID. As employment proof, you can furnish recent paystubs (at least last 2 months’). No credit loans lenders require the borrowers to be employed with the same employer for a minimum of 6 months before submitting the loan application and your paystubs would be the best to prove your employment status. To get the loan sanctioned, you also need to furnish recent bank statement. Unless you have a bank savings account with a positive balance, you can hardly expect to get a no credit loan. It is also required because the lenders generally deposit the loan amount directly into your bank account instead of issuing a check. So unless you have a bank account, it would be difficult for the lender to disburse a loan.

4. Check the loan agreement – Once you submit your loan application form and the lender approves it, they will ask you to sign the loan agreement. Before you sign off on the loan agreement, go through the fine print carefully. This section of the agreement usually contains tricky loan terms. Therefore, unless you read it well, you may miss them. And consequently, you may face unwanted harassments and hassles in future. After going through the loan agreement, if you find everything alright, you can sign the agreement.

Discussed above are the prime steps towards applying for and obtaining no credit loans. Irrespective of the type, a loan is a loan that you should pay back on time to avoid facing any unwanted hassle.

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