Personal Loans With No Credit Check
For many loan applications, having bad credit can get in the way of a favorable loan decision. This is especially true if you have a bankruptcy, repossession or home foreclosure in your past.
The good news is there are loan options available for people with bad credit or no credit history at all. If you've been looking for online personal loans with no credit checks, here's what you need to know.
What Are Personal Loans?
A personal loan online is usually an unsecured type of loan. This means that you won't have to use collateral to secure the loan. Common types of collateral include cars, homes and other property.
When you get approved for a personal loan, you can use the money for almost any expense. Some borrowers use money from an online personal loan for repairs and emergency expenses. Other borrowers use the money for vacations, school expenses and big-ticket personal items.
The amount of money that you pay to get a personal loan online depends on the interest rates, amount of the loan and how long you'll have the loan. If you're interested in getting a personal loan estimate, there are loan calculators that can provide you with this information.
Personal loans have a few similarities to installment loans. For instance, both offer short-term opportunities to borrow money. However, personal loans and installment loans may offer different interest rates. The features of each online loan depends on the lenders.
Facts About Personal Loans
Whether you use your personal loan to pay for emergency expenses or get caught up on your bills, there are some things you should know.
- Millions of people apply for personal loans every year. In fact, TransUnion estimates that over 27 million people were approved for these loans last year.
- You can get personal loans from internet lenders. Completing a loan application online provides a convenient way for you to borrow money without having to drive to an office. Not only does applying for a loan online secure your privacy, it can save time.
- Personal loans without a credit check may have higher interest rates than other types of loans. When lenders don't conduct credit checks on customers, it can be risky. That's the reason no-credit loans have higher interest rates.
- Personal loans can come with fees and penalties. Every lender has a different policy. Interest rates for personal loans can be as low as 5 percent or as high as 36 percent. A personal loan lender can charge an origination fee. This fee ranges from 1 percent to 6 percent. The origination fee is the money that's charged to customers for lenders to process their loans.
Is Getting a Personal Loan a Smart Decision?
Taking on new debt is a decision that should be carefully considered. Although loans can provide relief, you don't want to get trapped into a lot of debt.
If you need money to pay for a predetermined expense, getting a personal loan can be a wise choice. This is especially true if you have a plan for repaying the loan in full.
Find out if you can afford an additional payment every month. Calculate your budget to see how much extra money you have at the end of the month. Never borrow money with the hope that you'll be able to repay the money 'somehow'.
Reasons to Apply for Personal Loans
Personal loans offer benefits that you won't be able to enjoy with other types of loans. Here are a few.
You may not have to provide your lender with collateral. Signing a contract for a secured loan concerns many borrowers. This is especially true when you have to guarantee the loan with your valuables.
You can use a personal loan to consolidate your other debts. If you have multiple credit cards that you're required to pay, it can be a smart move to consolidate the debt into one loan. Just be careful not to create more debt on your credit cards.
Personal loans can help you pay for emergency expenses. When your roof is leaking or your car needs a new engine, how will you pay for these expenses? A personal loan can provide you with the cash that can cover extra bills.
There's no limit to the ways you can use personal loans. Lenders won't monitor the way you use your loan money. As long as you make your payments on time, you'll be in good standing with your lender.
Out-of-pocket expenses can eat away at the money you have in your savings account. Depending on your financial circumstances, a personal loan can be a helpful resource. Be sure to know the cost and terms of a personal loan before you make a commitment.