Thanks to traditional financial mediums revisiting their rules and making them stricter, the average Jane and Joe are left with no other choice but to seek the assistance of non-traditional lenders and their no credit check loans.
It’s no wonder there are tons of search inquiries on the internet that resemble, ‘no credit check loans near me’ or ‘types of no credit check loans’. With that stated, let’s jump right into the topic and take a look into the type of different types of no credit check loans available in the following sections –
Table of Contents
Payday Loans
These are easy-to-quality for and are offered by the lender to the borrower on a short-term basis.
The requirement is simple –
The applicant should have a stable source of income and a bank account. It is a great (short-term) solution to people with poor or bad credit history.
Features:
- Your credit history won’t be subjected to scrutiny.
- These are pretty easy to apply for and the approval rate is also very high.
- The funds get transferred to the applicant in minimal delay.
Guarantor Loans
This is a type of loan that is offered by non-traditional lenders to applicants with poor credit scores. The catch is –
The applicant would need to produce a guarantor in front of the lender who would guarantee the loan for the applicant.
A guarantor could be anyone but the person should own a home and should have a high credit score.
Guarantor loans come with a long payback period which can go up to 60 months! Compared to a payday loan, that needs to be cleared within a month, a guarantor loan is a much better option!
Features
- The interest rates are pretty low.
- The payback period is long.
- Large amounts can be easily borrowed.
- People with bad credit scores can borrow easily!
Logbook Loans
These are ideal for people who have an immediate need for money, have a bad credit score but own a car that has high value. The applicant will be submitting their car to the lender as collateral and he or she will be lent money based on the value of their vehicle.
Features:
- People with poor credit scores can apply for this type of loan.
- The overall paperwork is pretty easy.
- The sanctioned loan amount can vary depending on the value and overall condition of the car of the applicant.
Instalment Loans
One would need to make several payments in the form of EMIs or equated monthly instalments. These instalments would need to be carried over by the applicant until the debt is cleared.
This is a great solution for people who are in immediate need for some cold hard cash.
Features:
- One wouldn’t need to produce a guarantor while applying for the loan.
- An applicant with a poor credit score can also apply for this type of loan.
- One wouldn’t need to deposit anything as collateral to get their application sanctioned.
It is evident by now that there are lots of credit options even when traditional financial institutions have closed their doors for you – no thanks to your bad credit score. At the same time, one should also keep in mind that they would need to remain vigilant when they are choosing a lender. It is the only way to keep one from getting duped!
