No Credit Check Loans A Help for Troublesome Times

When in a financial emergency, would you choose a loan that’s less likely to be approved? Here’s why No Credit Check loans thrive despite a higher cost.

There’s no doubt that No Credit Check loans are among the higher cost loans out there. What makes them still so prominent and widespread? Isn’t the cost of the loan what makes them unattractive to people? Clearly,Guest Posting the market is proving since years that that’s not the case. While loans that people use to fulfil wants and aspirations (like car loans and home loans) are to a huge extent affected in demand by their cost, the same does not seem to stand so true for loans that serve people in urgent needs of funds for various reasons.

When in such a situation, options can be limited for a lot of people. Quick loans and borrowing from friends/family seem to be the available solution but not many wish to choose the latter and especially not after having done it once or twice before. Hence, quick loans are increasingly being the most preferred choice and as you read ahead, you shall see that a lot of people do not tend to have a strong credit history, making No Credit Check the only available quick loan option that can to an extent be relied upon.

Why do so many Individuals have Poor Credit Scores?

Roughly half of the millennials in the US do not have a healthy credit score. People outside of that group are a little better off but not by a huge number. What leads to this? Let’s take a look at the top reasons:

Poor understanding of the credit system: Not knowing how to prioritize payments and not knowing when shutting down a credit account (eg. Credit card) can actually be harmful for the credit scores, is an easy way to lose out on your credit score.
Using one credit card for everything: If you have and use just a single credit card for everything, use it to a high percentage of its limit and don’t repay it fully each month, there’s a significant hit that you’re causing to your credit score.
Not checking and acting upon errors: The credit system is complex. Once a year, you can check your credit report free of cost and repercussions. It is important to do so and apply to correct any issues and errors you find. Errors are common and corrections are also often done when requests are legitimate.
Not knowing what all gets featured on a credit report: Many do not know that even applying for a loan that gets rejected, hits the credit score. That’s just an example of many other things that make up the credit score.
Are No Credit Check Loans Faster?

Credit check is just like any step of the loan approval process – it takes time. When one step is skipped, time is saved. However, there are other things that need to compensate for what the credit check does. Being a short term loan, these are typically steps that do not take much time, hence No Credit Check loans still tend to be faster.

The other thing that makes these loans faster in general, is that they’re non-bank direct lender loans. Their processes seem to be simpler and quicker in general but this of course varies from lender to lender, and so does the speed and consistency of loans disbursement.

We have a few suggestions that can help you get loans quicker, if that’s what you need:

Keep all the documents and details ready while applying
Provide complete information and try to ensure it’s all easy to verify
Provide good quality scans of documents when applying online
Ready reviews about your lender to understand if they’re fast at processing loans
Apply for only as much as you know you can really repay and it’s likely that the lender would make similar assessments and process you loan so you don’t have to reapply elsewhere and waste time that way.
How Much Costlier are these Loans?

Loans and their mathematics are not designed to be very easy to understand. It’s hard to compare the usual bank and credit card loans with the non-bank direct lender loans which come with APR disclosures and simple interest while the former typically charge compounded interest.

In the simplest of terms, what I can say is that in less than a year’s term a significantly higher APR loan shall have a significantly higher cost irrespective of the type of interest being charged. Beware of loans that charge interest monthly – these shall have a many times higher APR (which is Annual).

Being very short term loans, No Credit Check loans have a high rate of interest but if your loan term is short enough, the final amount you end up paying quite a small amount at times. The only real way to know how costly a loan really is, is to find out the final cost.

One piece of advice here is to stay totally away from loans that you may fail to repay on time. Loans get very expensive if you cross the stipulated repayment schedules.

When should one avoid No Credit Check Loans?

No Credit Check loans are higher cost loans which are intended for emergencies and other sudden needs. These are also essentially short term loans which are not intended to be designed as a replacement for bank loans or other conventional loans like home loans, car loans, etc. They have their benefits but used wrongly, they can be very expensive and damaging too.

While it is virtually impossible to make an exhaustive list of every situation in which such loans should be avoided, here are a few which should help understand the idea well:

When you’re in a long term need: It’s simple – do not take a high interest rate loan for a long period of time. It will be more expensive than is reasonable. These loans are intended to be short term loans and even the idea of repeatedly renewing them to use them for a long term could be disastrous.
When bank loans are available and can serve you: If you’re not in too much of a hurry and bank loans are available to you, it should not be a problem to choose that option – they would tend to be less expensive. However, if what you specifically need is a very short term loan, you may have to do the mathematics to understand what’s less expensive.
When your credit history is great and there are other quick enough options available: There are other quick loan options out there. Some banks offer pre-approved loans to their long term customers, which are fairly quick. If credit history is not a problem in your case, you must first consider those options which may come at a lower cost.
When you find a lender whose offer seems illegitimate: Some lenders can be hard to verify for legitimacy. Sometimes the offer and their missing online presence should be a giveaway and it’s good to look for safer, genuine lenders while taking a non-bank direct lender loan. I share links of a trusted lender at the end of this article.
When you’re nearing bankruptcy: Since the loans are intended to be quick and with minimal checks and verifications, you’re the one who needs to know that bankruptcy isn’t near when you take this loan. Unlike loans with collaterals and bank loans, bankruptcy cannot be used to close these loans and the penalty of non-repayment will just keep piling up if you hit bankruptcy with such a loan still outstanding.
When you’re already in a lot of debt and didn’t think your decision through: Many borrows stuck in a debt cycle resort to No Credit Check loans. There are ways to use such loans to escape the debt cycle but these are not easy to calculate and it’s definitely not great if things go south from there. Employing a debt consultant for help at such a time may be helpful, if you are not sure you’re getting the mathematics of it right.
Is the “Guaranteed Approval” Real?

Many No Credit Check loans claim to offer a “Guaranteed Approval” on the loan. While this claim seems too good to be true, there’s more to it than meets the eye in the first glance.

I have read into the finer lines of many such loan offers and also spoken to some past borrowers and here I shall share what it truly means – which can vary a little from lender to lender but at a broader sense, remain fairly standard.

The first thing to keep in mind, is that lenders of the No Credit Check loans being non-bank entities, are able to offer a very flexible sum of amount. Some lenders can choose to offer loans for as little as $100. Maybe even lower but I didn’t find any such mention.

The second thing is that the marketing and terminology is worded in a way that it assumes qualification for the loan. If you do not qualify for their loan i.e., if you do not meet their eligibility criteria, there’s anyways no question of an approval. This also encompasses what amount you shall be eligible for borrowing.

Given these facts, it is fair to state that provided you apply for your loans of an amount that their eligibility criteria can accommodate and provided that you meet the rest of the eligibility requirements, your loans shall be approved with certainty. The catch here is that it’s hard to know for sure, what amount can be approved. Some lenders tend to make counter-offers to borrowers when they deem the borrower ineligible for the amount that’s being applied for.

Conclusion

Loans are available in so many ways and forms with so many labels today, that it gets confusing these days for the borrowers. No Credit Check loans also come under multiple labels and are typically offered by non-bank direct lenders. Being riskier for the lender, they tend to be a higher expense loan but the government regulations ensure transparency by mandating APRs to be disclosed and by eliminating compounded interest which tends to make lower interest rates far more expensive over time. The other advantage can be the very short term – which can be useful to many borrowers.

One of the reputed and experienced direct lenders offering such loans is CashAmericaToday. You can check out these pages to find their longer term online installment loans with no credit check and shorter term online cash advance with no credit chek.

Source: Free Guest Posting Articles from ArticlesFactory.com

Posted in Uncategorized | Tagged | Comments Off

Is A Home Equity Loan Right For You?

The reason’s for taking advantage of home equity loans are the most important part of the process. Take the time to sit down and ask yourself, “Do I really need a home equity loan? Do I want to go on a spending spree or am I really trying to improve my life?”

You keep hearing about home equity loans.

The bills are out of control and you need a new car. “Maybe we can get a new carpet and paint the house”,Guest Posting you say to yourself. And, you keep hearing about home equity loans.

These are just a few reasons why home equity loans can seem like the solution to all your problems and are so popular.

Home Equity Loans: The Upside and Downside

Home equity loans can be a fantastic way to start your own business or to take advantage of an investment opportunity. They can also make your situation worse than it was before you got the home equity loan.

The reason’s for taking advantage of home equity loans are the most important part of the process. Take the time to sit down and ask yourself, “Do I really need a home equity loan? Do I want to go on a spending spree or am I really trying to improve my life?”

A Home Equity Loan is Like Having a Second Mortgage on Your Home

Suppose your home is worth $200,000 and you have a mortgage against it at $150,000, you will have $50,000 of equity available. Home equity loans allow you to borrow up to 80%, and sometimes more in certain situations, of your home value. In this situation you could borrow $80,000 as a home equity loan and still have only borrowed 80%.

This is why it is so important to take a good look at your situation before making a decision. You can see how easy it could be to get carried away with home equity loans.

A Home Equity Loan-Some Smart Reasons and Some Not-So-Smart

Let’s say you only need $20,000 for that new car and some home improvements. You decide to borrow another $15,000 of equity for that vacation to Hawaii you have been dreaming about. First of all, a vacation to Hawaii would not cost $15,000 unless you went on a first class, spare no expense vacation.

Using a home equity loan to buy a car may not be a great idea with today’s 0% interest rates and no money down loans. There is no sense in risking losing your home to buy a new car with these type of loan programs that are available in todays market.

On the other hand, a home equity loan for home improvements may be a great idea. This will add value to your home as long as you can afford the higher loan payments.

A business that’s doing great that you want to expand may be another good use of a home equity loan. As long as the business is already in profit and is not losing money.

Some solid investments can be a good idea if you have done your research before hand. The latest IPO may or may not be a great idea.

Consolidating high interest credit cards may be a great idea as long as you close the accounts and don’t run them back up. You really only need one or two credit cards in case of an emergency.

Educational expenses may be a good reason to take a home equity loan to get your children started in the right direction. Someday this type of an investment can pay off.

These are just a few things you can do with home equity loans. It’s very easy to borrow too much, only to find yourself having a tough time making the new payments.

The important thing to remember with home equity loans is to be logical and don’t let your emotions get the best of you. Again, take the time to sit down and research all your options. This way you can rest well at night and not have to be concerned about losing your home. You can enjoy the things you do with your home equity loan knowing you’ve made a wise decisio

Posted in Uncategorized | Tagged | Comments Off