Worldwide, global debt rose to a massive 226 trillion. Specifically, 73.2% of Canadians said they had an outstanding debt or once had one. Of which, a third believe that their debt is too much to bear.
With global economic stress, facing a financial crisis is only natural. Unfortunately, loans are the only quick solution to recovering from this financial stress.
However, it would be difficult for those with a poor credit history to take out a loan, right? Well, not necessarily. Read on to learn about no credit check loans and how much of a good or bad alternative it is to traditional loans!
The Bright Side of No Credit Check Loans
Financial institutions often conduct credit checks to determine the credibility of borrowers. In the eyes of lenders, a credit history speaks of a client’s ability to consistently pay on time.
The better the credit score, the less likely the client is to make late or missing payments. However, poor credit history happens to the best of us.
Those with poor credit history who opt for a loan find it challenging to get approval. This is mainly because the lender will take their time reviewing and creating a “fairer” loan deal.
After a long waiting period, most would meet a high-interest rate before granting the loan. Sometimes, the lender would ask the borrower to lessen the amount to get approval.
Suffice it to say borrowers with poor or no credit history at all are at a disadvantage. This is where no credit check loans shine the brightest. Lenders are open to financing struggling customers with no discrimination.
As the name implies, a credit check loan is a type where lenders won’t review the borrower’s credit history. This gives borrowers who have bad or no credit history better loan opportunities.
Since lenders won’t factor in credit scores, interest rates won’t necessarily be high. Depending on other factors such as job and time, the interest rate could rule in favor of the borrower.
Fast Cash: Quick Process
No credit check loans are specifically designed to meet the needs of those with bad credit. Compared to traditional types of loans, no credit check loans require fewer requirements. It only demands basic documents such as a valid I.D., bank info, and income statement.
As such, expect a relatively straightforward process when applying. Especially since you’re directly applying to the lender rather than to a hierarchy of organization executives.
After submitting the application form, expect to get the money on the same day or the next. It’s the epitome of what we call fast cash.
Additionally, no credit check loans are convenient. Lenders went digital, so you can apply for a loan from the comfort of your home! This move eradicated the need to visit banks and wait in line.
At EasternLoans, for instance, online no-check loan applicants usually receive the cash within a few hours after approval. It’s quick money. No more long tiring document processing and inconvenient travels.
Don’t have a computer at home? EasternLoans’ website is mobile adaptive. It should work as well, even when opened on your mobile devices.
Another benefit of a no credit check loan is that lenders don’t require collateral. If you bring your poor credit history to a traditional lender, they’ll likely approve your request under certain conditions.
Aside from higher interest, they may require you to bring a guarantor or collateral. With no credit check loans, you won’t have to put up your personal property to secure the loans.
Enjoy Flexible Terms
The best loans should feature a reasonable, flexible repayment period. Under traditional loans, lenders give you specific, non-negotiable monthly payments and interest rates.
However, no credit check loans are available with flexible terms. Borrowers can choose among repayment plans that best suit their needs.
If you’re struggling to meet your payments, your lender will allow you to make a partial payment. In this repayment system, you can reduce your monthly amount due. However, this means you’ll be paying over a more extended period.
The Cons of No Credit Check Loans: Beware of Predatory Lenders
The main problem with no credit check loans is that it presents higher risks. Lenders often solve the trouble of non-repayment by increasing interest rates. As a result, these loans can reach mountains and be unbearable to borrowers with no fixed income.
Meanwhile, malicious no-credit check loan lenders can take the violent route when unpaid. Unfortunately, this is common, especially if it involves significant money. Then again, it’s a matter of choosing a reliable and trustworthy lender.
The most disadvantageous thing about no credit check loans is the cap on how much they lend. Since this type of loan is risky for lenders, they tend to minimize damage by limiting how much they can lend. For example, at EasternLoans, borrowers can get $500-$750 deposited in their back after application.
The Debt Cycle
When you take the fast cash route, you’re entering a debt cycle that can be difficult to come around from. Under extreme circumstances, high-interest rates force one to take out another loan to help them repay an existing one.
The dilemma is that this is a band-aid solution. If you have employment issues, this solution can quickly lead to an even bigger problem.
However, it’s important to remember that this only happens in extreme cases. Often, this results from a huge debt and a sudden lack of cash inflow from the borrower’s side. Meaning so long as you’re financially literate, this potential ruckus won’t be a problem.
Prone to Risks and Scams
This con is more relevant to no credit check loans provided online. While there’s continuous development in digital technology, there is no assurance that a website is 100% safe.
Malicious web users like hackers always look for prey, and financial websites are their playgrounds. So while we can take measures to prevent cybercrimes, there is always a risk.
However, this doesn’t mean you shouldn’t trust online applications for no credit check loans. Again, it’s a matter of finding a verified and secure digital lending organization.
Bad Credit Loans in Canada!
An online lending website that you can trust? We at EasternLoans took extra steps to ensure we wouldn’t jeopardize your security and privacy.
We will help you financially rise via our flexible and budget-friendly plans.
Worried about a long, tiring process? Perhaps rejection once we see your bad credit history? This is fine for us.
Our no credit check loans are the best and quickest in Canada. Don’t be afraid to send us a message! Our team of experts can help you get started!