What are no credit check loans?

As like the name suggests, these are the types of short term cash advances  whereby the lender does not perform a hard credit check.

In short, your creditworthiness is determined without necessarily doing a credit check. They require a credit check but it is minimal.

No credit check loans are usually an appealing option for borrowers with poor and bad credit scores. But as much as no credit check loans may seem to be a good deal, these are also some drawbacks involved.

It is therefore important to educate yourself on these loans in order to make a safe borrowing decision.

What sort of loans have no credit checks?

 There are different variations of loans with no credit check and some of them are safer compared to others. 

  1. The first type of no credit check loan is a payday loan. This is short term financing for 10-30 days. It is a good type of loan for emergencies but comes with higher interest.
  2. The second type of loan with minimal checks is an installment loan. These loans are with monthly payments and have lower interest than payday loans. The term can be 6 months or more.
  3. The third type of loan is an auto title loan. This type of loan is secured on the collateral in your vehicle. For example you have $3000 in your car you could use this money as a loan from a lender. 

These loans have no hard credit checks and are often advertised as “no credit check loans” but it is not 100% true. The lender will need personal information.

What is the difference between Oakpark’s loans and payday loans?

Payday loans are short term in nature with a limited repayment term. We offer installment loans that come with lower interest, longer repayment terms and higher loan amounts. 

Here is a quick summary of the difference between installment loans and short term loans.

 

OakPark loanspayday loans
Loan$400 – $5,000$200
% rates90 – 200%600%+
TimeUp to 3 years14 days
Rebuild credit?X
Security needed?X
Lose your vehicle?XX

 

What is a soft credit check?

No lender will guarantee you a loan without doing a ground-check on your details. This is know as a soft credit check and looks at rudimentary factors such as your address, salary, address.

What is a hard credit check?

A hard credit check is a test performed on your credit history by a bank or major lender. These checks are more aggressive and may affect your ability to get credit. This is why a no credit check loan may be appealing to those who wish to apply with minimal credit issues. Poor credit is not an issue.

What information is required by the lenders?

The following details are generally needed by lenders

  •         Your income details
  •         Your employment status
  •         Your bank account
  •         Your financial history

How safe are loans with no credit check?

No credit check loans are offered online by reputable and legitimate lenders.  The fast loans are available for all borrowers regardless of their credit type.

If you want to know the difference between a reputable lender and a scammer ensure that you pay attention to the loan term, rates and ability to pay the debt.

What is interest rate or APR?

Interest rate is the cost of borrowing a loan. It is a percentage that is usually charged on top of the principal amount. APR, which is the short form of Annual Percentage Rate,  is the rate that you will pay on a yearly basis.

What is a loan term?

Loan term is how long it will take you to pay off the loan.  It is the time between funding up to when the loan amount plus all interest and fees are paid in full.

What is ability to pay?

Ability to pay simply means whether you can afford to pay the whole loan, including the interest and associated fees. Every time you borrow money, ensure that the lender focuses on whether or not you are able to pay the debt.  This can be clearly shown by the rate they offer.

In case you cannot qualify for an unsecured credit card and you can’t borrow from friends and family, applying for start-up loans with no credit check may be a good deal.

Ensure that the loan term and rate is convenient for you. Also, ensure that the lender is interested in your ability to pay back the debt. 

If they do not perform a hard credit check, they should at least consider your income and employment status through a soft credit check.

What is the interest rate for the loans?

No credit check loans have an APR ranging from 90% to 600%. These rates vary depending on the state.

How much money can I get?

Amounts start at just $100 and go up to $1000 on the payday loan side. This is a short term loan that is due in from 1-4 weeks. With an installment loan, the amounts got beyond $5000 with longer terms.

When  can I get the cash?

If you submit your loan application by noon, it will be processed and approved on the same business day. Applications made afternoon are approved on the next business day.

Payday Loans Near me?

If you are looking for a no credit check loan in your state or city it is perhaps better to consider the online alternative. IN any state where short term lending is legal we are there to assist. From Alabama to Wisconsin we have an online solution to receive funds fast

Retail location difference?

The benefit of store locations is a possible immediate payout instead of waiting a day with an online lender. If you have bad credit then you could also be wasting a lot of time driving only to be refused. You could use that time on no credit check lenders instead on the internet.

Fico score and no credit check loans

A Fico score under 600 puts you in peril of not obtaining a loan from a large intuition.

This also includes the major online lending corporations as they use the same process to check your credit score. If you have a sub 600 Fico score then a loan from OakPark Financial may suit your needs.

Are your fees higher?

The natural answer is yes. If you qualify for a loan from a bank with good credit then the fees should automatically be lower as you pose less risk to the lender. Lenders with poorer credit score have a higher default rate and our interest rates reflect this.

What can I use my no credit check loan for?

When you need cash for an emergency then a short term loan can be a real boon to assist you. There are many situation in which a no credit check loan can real save you. Here are some examples

 Medical Expenses

Insurance can be expensive and many Americans have none at all. You may also only be partially covered with a deductible amount. This can run into thousands of dollars fast. A loan can pay down these expenses to pacify your creditors.

Emergency car repair or home repair

Getting to work is one of the most important factors when you have a job that needs a car. If you have no funds to fix it then you could lose your job.

Imagine your heater breaking in the middle of winter and you cannot heat your home. A loan can assist you to immediately pay off the repair so you and your family can keep warm.

Are these loans applicable with bad credit?

Yes, they are lifeline if you have bad credit and cannot get a bank loan. A bank loan cannot be done as fast as an online bad credit loan either.

Because of the lower barrier to entry people with poor credit score have a better chance of receiving a loan.

Paying off another debt

If you have debt collectors on your back and those calls are getting too frequent. A no credit check loan can keep them at bay for a short time. In this instance you probably need payday loan consolidation though as the long term payments will be smaller.

What are the advantages?

  • Bad credit is welcomed by most lenders
  • A 5 minute application process
  • High approval rates for bad credit borrowers
  • Can help build credit if you pay back on time
  • A lifesaver when you have an emergency expense
  • As fast 24 hour deposit in your account
  • No hard credit checks

What are the disadvantages of no credit check loans?

High-interest rates and fees are a feature of these small business start up loans with bad credit. For most people, this is manageable if they pay back in time.

If you roll-over your loan or take out several loans then the fees and interest can be a dangerous factor. You should always work out if you can pay back the loan in the time allotted.

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