Are No Credit Check Loans Good For People With Bad Credit?
No credit check loans are something to be
avoided if your credit is good. The loan without credit check process is quick
and easy and designed to help (well, not really) those who have bad credit and
need to borrow.
Generally, however, they are exorbitantly
costly and could lose you the title to your vehicle or possession of other
property you put up as collateral. Quite often, no credit check loans are a
payday type loan, which means you get the money by writing the lender a post
dated check for the date of your next pay period, at which point they cash the
check.
That seems easy and fair enough, doesn't it?
The catch, of course, is that you pay back that lender much more than you get
by taking out a loan without credit check.
Of course, there are situations that are
unpredictable and many of us can find ourselves in a financial pinch that, for
credit reasons, leaves us without any other option than a loan without a credit
check.
Loans without a credit check are a rather
novel and comparatively new industry, and some of them - such as payday loans
and title loans prey on the low income and the unfortunate.
There are legitimate lenders, however, that do
offer no credit check loans. Banks and other financial institutions do so. What
is important is that you comparison shop and read all the fine print. Ask for
as many free quotes as you can.
Most of these are going to be available
online, although some will say they can give you an online quote and what they
are doing is getting your personal contact information so a financial sales rep
can call and hound you into using their loan without credit check services.
If you want the information and this happens
you might consider submitting an alternative phone number. The result will be
that you will get an email saying they were unable to reach you by phone, at
which time you can tell them to send the quote by email. Some will, but some
will not. If they will not then they were probably one of the higher-end of the
lenders. Cross them off your list.
Comparison shopping is not just about who
offers the lowest rate, however. Make sure you know all their policies such as
prepayment penalties and terms of repayment.
A much lower rate paid back for an additional
three years could end up costing considerably more than its shorter term loan
without credit check counterpart who offered a higher rate of interest. Make
sure you do the math.
One term you will want to fully understand
when comparing the various no credit check loans. The term is APR, annual
percentage rate. This refers to the total cost of your loan for a year, and it
is expressed as a percentage of the amount of the loan.
Posted by:
12monthsfreephones
This entry was posted on 10:45 PM and is filed under
0 Responses to “Are No Credit Check Loans Good For People With Bad Credit?”
Post a Comment