People have mixed opinions on a no-credit-check loan. The loan without a credit check is a myth to many. On the other hand, some borrowers think it might be a twisty affair. However, in reality, it is not so.
We are a direct lender. Our team is known as 1oneFinance. We have been lending money to countless borrowers, making them happy with customised loans. We find today’s borrowers more aware and informed about loans. Frankly speaking, you make our work easier. However, we have still found a few borrowers confused or questioning about the no credit check loans. We can clear your confusion about this topic in this post.
The Connection between Credit Check and a Personal Unsecured Loan
We offer personal loans. You already guessed that they are known as unsecured loans too. An unsecured loan option is a loan without collateral. You do not have to bring the paperwork of an asset to get this loan from us. Any unsecured loan works without collateral, and you also gain the freedom to use these loans in flexible ways.
Taking out a personal loan is, therefore, an easy deal. A borrower need not worry about the verification norms of collateral. The loan application becomes free from clutters. However, the credit check still remains a vital part of the loan.
Is a no-credit-check loan impossible, then? Well, the answer is ‘No.’ A no credit check loan is possible, and that too without collateral. We can say that you need to look for the right product.
A credit score is connected with a loan to help the lender and the borrower find and define loan affordability. Whether or not you can afford the loan repayments using your income points out to the affordability of your loan.
Yes, your income can define your loan affordability. However, your credit score helps you and your lender understand loan affordability better, provide you with more suitable loan products, and make repayments strategically to develop the credit score.
Why Do People Look for a No Credit Check Loan?
There is more than one reason you find a borrower to look for a no-credit check loan. Mostly, these reasons can revolve around credit score and income. However, there can be other purposes a borrower has to look for a loan of this kind. A few of the reasons we have identified by working with our borrowers are given below:
- A poor credit score drives borrowers to look for a loan without a credit check.
- People with low income may look for a loan with no credit check because a low or poor income is likely to affect their credit scores.
- Often a loan without a hard credit check is very useful for emergencies.
- Unemployed people are most likely to ask for a no-credit-check loan because the lack of earnings can get them into pending payments or debt, which leaves a negative mark on the credit check.
Apart from these reasons, we have also encountered borrowers requiring a no-credit check loan for a variety of purposes. One of them is borrowing a short-term loan. We have experienced borrowers asking for a soft credit check with loans of this kind. Technically, they are not wrong.
How a No Credit Check Loan Is Possible: Natalie’s Story
We can share with you the story of one of our borrowers. Her name is Natalie, and she has encountered a situation that might appear similar to the one you are facing right now.
She is a teacher in a local school, a wife, and a mother of two. Before winter, the roof of her house came to collapse. Luckily, no one was home. She needed some money to mend the roof almost immediately. However, her husband was recovering from an illness at that time. Both her kids are of school-going age. She needed quick cash money as a solution to fix the roof of her residence. Luckily, she met us.
We went through Natalie’s credit profile and found a bad credit score. It was not extremely poor. However, she might have experienced issues getting credit for the score she had. She requested a no-credit check loan, and we agreed to do it to provide her with the immediate financial help she needs.
She worked at a school at that time. She has an income source with proof or documents; we asked her to take out one of the no credit check payday loans. As the product name of the loan already suggests, a payday loan is a short-term loan that you take out now and repay on your next payday.
In this light, you can repay it within a few weeks or extend the term to a few months. However, the loan is based on the information of your payday, i.e, your salary information.
She used her school’s experience letters to get the loan from us. We offered her an even rate because her income came as sufficient to repay the loan.
You might be thinking about a bad credit score. Well, the truth is we lenders will make a soft credit check instead of a hard credit check to lend you money. If you need a no-credit check loan, you need to supply some information (valid, of course) on your salary or income details to help us define and ascertain the loan repayment.
Keeping this thing in mind, you can search for a loan product that does not mandate a hard credit check. One of them is the payday loan.
You can also take out a loan without a credit check by altering your income statements. Good examples of this are the cash loans for people on benefits. You can get these loans with no income but with benefit programs (if you receive them).
To Conclude
We hope that we have helped you understand the reality behind a no-credit check loan. The words ‘no credit check’ can have a variety of meanings in the financial field. To direct lenders, all it means is getting a loan with your income details. However, a soft credit check will be made. It won’t disapprove the loan or discard its approval. It is done to offer you the best loan deals.
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.