Getting Unsecured Loans with No Credit Check

Sometimes called payday loans or fast cash advances, getting unsecured loans with no credit check is possible for most individuals who are employed. Loans of this nature are typically selected by individuals who have had credit problems in the past, including bankruptcy, as it gives them access to the funds they require without a credit check that would cause denial for more traditional forms of credit.  

Unsecured loans have higher interest rates than secured loans or personal loans that are given based on an applicant's credit score. Because of the higher interest rates, these loans should not be the first choice of financing for individuals who might qualify for other forms of credit based on credit checks.

Loan terms for unsecured loans have shorter repayment schedules than secured loans, with most requiring payment within 1 to 4 weeks.  Most lenders of unsecured loans will require that your loan payments are made with automatic withdrawals from your bank account. Some lenders allow borrowers to extend the repayment period for 7 weeks or longer, but will charge penalty fees and additional interest for that privilege.

Why do People Apply for Unsecured Loans?

There are any number of reasons why an individual would apply for an unsecured loan, including the need to pay for medical expenses, make a purchase, handle an emergency, go on vacation, or consolidate other debts into a single payment.  

The decision to apply for an unsecured loan with no credit check is made by individuals who have poor credit histories, and are unable to get approved for credit cards or loans with lower interest rates.

How to Apply for Unsecured Loans with No Credit Check

There are both online providers of unsecured loans and private lending companies offline.  If you are looking to receive money quickly, online loans are your best option.  Online applications for unsecured loans are processed faster than offline applications, with some processed and approved within 60 seconds of applying.  Provided the borrower meets the minimum approval requirements, an online loan can be funded within a few hours of approval via a transfer of funds into the borrowers bank account.

How to Qualify for an Unsecured Loan with No Credit Check

As the name of the loan suggests, unsecured loans are offered to borrowers without any form of security or collateral.  Each unsecured loan lender will have a different set of criteria for borrower approval, but in general you will need to be at least 18 years old, employed, meet minimum monthly income requirements, and have an active bank account.  There are some loan providers who will require that you have had the same job for a minimum period of time.

What to Watch Out For with an Unsecured Loan with No Credit Check

Not only do consumers face exorbitant interest rates with one of these loans, there are other issues that you need to be aware of as well.

Serious consequences if you fail to repay. Since your paycheck is used to secure the loan, you feel safe because the amount that you need to repay will be there on payday. But what if you get sick and do not have sick pay or you cannot take vacation time to make up for it? If your paycheck is not enough to cover the amount needed, you will have to come up with a source of cash to fund that difference.

Avoid rolling over your payday loans. Some choose to roll over their payday loans into another two weeks or so and incur additional fees. This can cause you to build up a substantial amount of interest owed very quickly which becomes harder and harder to pay back.
Payday loan companies use unscrupulous tactics in collection efforts. Most often, they threaten to turn the original check over to authorities as a 'bad check' transaction saying that this makes you liable for arrest and criminal prosecution, when that is not the case.

Use an Unsecured Loan with No Credit Check as a Transition Only

People who use these types of loans are often caught in circumstances that force them to turn to methods that they normally would not use in order to get through a tough time.

Make it a priority to avoid these loans and if you do use them, only do so as a means to get back on your feet and begin using less expensive options for you. If you do not, you stand the risk of payday loans becoming a standard way of handling your money and the interest that you pay will consume your money quickly.

Make plans to save small amounts of money. Even if it is just $10 per week, you should begin to do that as while you are taking out these loans in order to help build up a small amount of cash to keep on hand for the little emergencies that come up.

Getting an unsecured loan with no credit check is an easy thing to get into, but can be more difficult from which to make an exit.

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