Yes, you can! When in need of money, you may be stressing about how your imperfect credit record may impact your implication. Well, stress no more! There are plenty of options for you even if you haven’t had a perfect financial history.
- No credit check loans are there to throw a lifeline to borrowers who may find it difficult to secure a loan due to financial hiccups in the past.
- A credit check occurs when a company looks at your credit history to grasp your past financial behaviour.
- A credit score of around 600 or above will usually be high enough to secure a loan with a credit check.
- Given that only 14% of borrowers fully and promptly pay back their loans, it is important to have an understanding of how you will pay your loan back, before you take it out.
- The average APR on a payday loan is 396%, meaning that if you’re in financial trouble with already weak credit, it may be worth considering alternative means of financing, such as a loan from a loved one.
Why Would I Need A No Credit Check Loan?
You may need a no credit check loan if you are in need of funds and haven’t had the easiest financial journey. Having had financial trouble in the past contributes to an imperfect credit record, that will illustrate whether you have taken out loans in the past, failed to pay them back, failed to pay bills and other financial indicators that you haven’t had the easiest ride.
All of your past financial moves will contribute to a credit score, which is a number between 300 and 850. The higher your number, the better your credit record.
What Is A Good Credit Score?
There is no single number that represents a good or bad credit score, but there are some general rules that can show you whether you’re in good financial stead or not.
Generally speaking, a 396 to 579 credit score is slightly below par.
580 to 669 are considered fair.
670 to 739 are considered good.
740 to 799 are very good.
800 and up are considered excellent – so if that’s you, no need to worry!
What Is A Bad Credit Score?
Lenders typically will be wary of borrowers with a score of the mid 650s and lower. 589 to 668 are known as subprime borrowers, meaning that they will find it difficult to repay their loan, if we are extrapolating from their financial past. 580 and lower are considered poor and therefore, if this is you, it may be the best option to get a no credit check loan. This may also be necessary if you are considered very poor, with a score between 300 to 579, or below average, with a score of 300.
How Much Can I Borrow And How Long For?
Assuming you find the right borrowing lender, which you likely will, you could be eligible to borrow as little as $100 up to as much as $35,000, depending on your credentials, such as your employment status and income.
Before requesting a certain amount of money, you should be clear as to how much you truly need. As these loans have stringent repayment plans, you should be sure that you are not unnecessarily loaning money that you may struggle to repay.
What Else Could I Do?
You could approach a family member or friend if you think that this would be more suitable to you. Typically, a loan from a loved one is more flexible than a high street loan, as they know you on a personal level and may be willing to make more adjustments to a repayment plan.
You could think about securing a guarantor loan, whereby somebody you know, who will find it easier to take out a loan, will do so on your behalf.
If you are really stuck, you should talk to a financial advisor who will be able to guide you in the right direction.