No credit check loans: Steer clear & Save Yourself Financial Pain

Date Posted: August 26, 2015

No Credit Check Loans

Finding a lender to loan you the money you want has never been easier, regardless of how bad your credit rating is. A simple Google search is all it takes. No credit check loans have grown in popularity, because all you need to do is complete an online form and approval is given almost immediately. The whole concept of ‘no credit check’ is in the title, but the risks are enormous if you decide to head down this path.

The reason you would apply for a loan of this sort, and we use the word ‘apply’ loosely given it’s virtually impossible to be denied, is because you don’t want anyone to know how bad your credit history is. As such the lender considers you a high risk and imposes fees and terms that are so heavily skewed in their favour, that a single hiccup during the life of the loan could leave you on the brink of financial ruin.

no credit check loans rejected

What fees and terms are typical in no credit check loans?

The nature of the loan dictates that you take almost every risk imaginable. Despite the lender offering you the cash you need, whether it be no credit check car loans, no credit check personal loans, or any other kind of no credit check loans, the risk they take is actually quite small.

  • Interest rates will be exorbitant, so by the time you pay off the loan, the item you bought will be worth far less than the amount of money you paid back.
  • The lender may lock you into a long-term repayment structure, so you’ll be making repayments with those high-interest rates for a long period of time.
  • You will most likely be forced to set up a direct debit payment scheme. If you don’t have enough money in your account when the loan repayment is due, for whatever reason, the consequences will range from a big penalty fee to repossession of property or worse.
  • Establishment fees, early exit fees, and other hidden fees will be far greater than for a regular loan. If your financial situation improves during the life of the loan, paying it off early may cost you a lot of money.
  • You’ll be asked to provide a lump sum down payment. For example, if you wished to borrow $12,000 to buy a car, you may be asked to contribute $2,000 upfront. Can you afford that? Where will you get that money? How much financial stress will that put you and your family under?
  • Personal property will be used as collateral in case you default against the loan. For no credit check car loans, it could be the car itself. For a no credit check personal loans it could be your car, jewellery, your home or something else valuable and precious to you. If you can make the inflated loan repayments, the lender will have every right to take possession of your personal property.
  • You will probably be encouraged to buy insurance as well that does nothing for you but protects the lender in the event of your death or disability so they can recover the outstanding loan amount.

No credit check car loans, what’s the best alternative to get finance??

Your credit history has limited your options, but you should never place yourself in a position where one false move could have dire financial consequences for you and your family. Don’t accept terms that are designed to lock you into long term, high-interest repayments with virtually no way of improving the terms if your financial position changes. You are setting yourself up for a huge fall.

no credit check car loans approved

Car loans are accessible for people with bad credit, in fact with the majority of lenders increasing the ‘tightness’ of their lending policies more & more Australians are being told ‘no’ by the big banks. That’s why bad credit car loans are such a win for anyone like you. The simple question you need to ask yourself:

Why would consider no credit check car loans when bad credit car loans have substantially better rates, terms and flexibility?

You’ve made financial decisions in the past that have negatively impacted your credit rating, but that is not uncommon. Many people have bad credit ratings, and the best way to improve your credit score is to make smarter, more informed lending choices. Ensuring you totally understand the terms and conditions of the loan agreement you sign, and making decisions with your head and not your heart, you will reduce the chances of defaulting on the loan. Making repayments in full and on time during the life of the loan will dramatically improve your credit rating.

But I like the idea of no credit check personal loans…

no credit check personal loans chalkboard

Sometimes it’s best to honest with yourself and really wonder if it all seems to good to be true, it probably is. This is always the case with no credit check personal loans! Around the country right now we have access to 4-5 lenders who will lend you funds if you have a bad credit rating, some even with defaults or part 9 agreements. The difference with a no credit check personal loan as opposed to bad credit personal loans is easy to see when the maths are as simple as this:

  • No credit check personal loan interest rates – 28% and above
  • Bad credit personal loan interest rates – 14% – 25%

Really simple huh? You’ll always win by getting bad credit personal loans over no credit check personal loans or any form of no credit check loan. Don’t make a mistake that will cost you more in the long run!

Got bad credit? Loans for people with bad credit can help

Having a bad credit rating means you’re unlikely to be approved for a normal loan. Unfortunately, until you’ve proven you’re not a credit risk anymore, you’re options are limited. However, most reputable financial institutions and banks offer bad credit loans because they understand that people are human and make mistakes. Bad credit loans are designed to help people get the money they need while giving them the best chance of making their repayments and improving their credit score. They are available to make just about any purchase such as cars, motorbikes, homes, boats, caravans and even personal loans.

By talking to the experienced bad credit loan brokers at Loans For People With Bad Credit, you will have the best chance of securing a loan that you’re capable of servicing without putting undue stress on yourself and those you care for. Loans For People With Bad Credit has relationships with many reputable banks and financial institutions and has intimate knowledge of their bad credit loan products. The team will assess your credit history and current financial position, and apply for the best bad credit loans to suit your needs.

calculate repayments

Calculate Repayments

With a loan calculator you can work out what your repayments may be, how they can change with interest rates and how much you can borrow based on a weekly, monthly payment. Be armed for when you speak to your lender!

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Compare Loans

When ready, you will be able to compare loans to help you decide which is better suited to your needs! Assess what terms and figures will better help your situation and be fully prepared when you speak to your broker.