When getting a loan with no credit check, look at the interest rates, consider all the options first, and verify that the lender is reputable, recommends About.com. If it is a loan that requires collateral, such as is the case with a car title loan, consider the risks compared to the benefits of the loan.Continue Reading
While many people looking for a loan with no credit check have no or bad credit, it is still a good idea to check alternatives first, says About.com. Check with your bank or credit union to see if you qualify for a loan. If not, at least look at the interest rate of the no-credit-check loan. This is one of the biggest drawbacks to this type of loan. The loan is more expensive due to the interest rate, to make up for the risk of accepting different credit situations. Also, look at the terms closely to see if any other fees are involved.
Some common no-credit-check loans are payday loans and car title loans, says About.com. The risk with a car title loan is that you have to put up your car as collateral. If you can’t pay it back in time, the company has legal right to take ownership of your car. Both of these loans don’t check your credit, but they are more expensive than traditional loans and are short-term loans.Learn more about Personal Loans