All these no credit check loan ads would have you tempted when you need urgent funds. It’s a useful option, no doubt there.
Most loan providers won’t tell you the factors you need to consider before applying for any loan, but especially no credit check loan, because you’re already likely in the poor credit score area.
Consider these factors and evaluate your decision before clicking that final “get a loan” button. If you still think this loan is perfect, who’s going to stop you? Go and get that money! Oh, and don’t fret about getting the best no credit loan choice when WeLoans is here to help you.
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Is a No Credit Check Loan Right For You?
With dozens of loan options out there, you need to select one carefully. Each loan type comes with its own pros and cons, so make sure to read those instead of rushing through the process.
As far as no credit check loans go, they’re ideal for people with a plummeting credit score or no prior credit history. The lenders won’t dig through your credit reports with a hard credit check, and you won’t risk rejection because of your poor credit scores.
Alternatively, no credit check loans also come with higher APRs than normal. After all, lenders need to balance out the risk they’re taking by providing a loan in such cases. Therefore, it’s advisable to select an alternative if your credit scores are in the average range to avoid a higher loan cost.
If you’re sure that a no credit check loan is right, you’ll need to know a credible lender or broker to apply for a loan. Look no further than WeLoans. For more details about WeLoans and its loan services, visit their website.
Are You Eligible for the Loan?
Most lenders would scare you away with their eligibility criteria before you even start applying for a loan. Fortunately, no credit check loans have minimum criteria that just about anyone needing urgent finances would fulfill.
So, what does it take to get a no credit check loan? For starters, you must be of legal age, i.e., at least 18 years old, to apply for a loan. The lender may ask for proof through an ID, license, or passport. Secondly, you need an active bank account where the lender can deposit the funds. Most lenders don’t allow a cash handover.
Next up is US citizenship, even if you’re applying for an online loan. Finally, the lender needs proof of sustainable income whether you’re an employee, property owner, or businessman. If you’ve checked this list, you can officially apply for a no credit check loan.
How Much Do You Need?
While no credit check loans can go up to $35,000 if you’re applying through WeLoans, it’s important to calculate how much you actually need. You could always go a couple of thousand bucks extra, but the bigger the loan, the higher the payback. Hence, never overdo the amount and only keep it for emergency finances.
Before selecting an amount, make sure you add up the finances that have you borrowing a loan first. As for the remaining expenditure, see if you can delay those or manage them with an upcoming paycheck. Keep your loan amount restricted to necessary expenses only. If you’re completely out of cash, go only a couple hundred bucks extra, so you won’t have to take out another loan soon but won’t have to bear heavy repayments.
Have You Compared Offers?
Don’t sign a deal with the first lender that comes your way. A lender may be able to take advantage of your financial needs if you don’t compare offers from at least a handful of lenders beforehand.
When landing in this phase, check if the lender is providing the requested loan amount. Then, go over the repayment period as well as the terms and conditions. Some lenders may charge a hefty fee for even a one-day repayment delay. Others may restrict your loan usage to certain conditions.
Know the ins and outs of the shortlisted loan offers to make an informed decision. And most importantly, don’t forget to compare the lenders’ overall fees and interest rates. This factor usually makes or breaks the deal for most borrowers.
Is the Lender Licensed?
Settled on a lender after reviewing their terms and conditions and charges? Unfortunately, you could still fall for a trap, especially if the deal is too good to be true.
Any lender operating in the US should have a state-approved license that allows them to provide lending services under certain regulations. If the lender isn’t licensed, that’s bad news. For this reason, you should check the lender’s website and see if they’ve put up their license. If not, ask the lender to show it. Watch out for red flags, including the lender’s hesitance or refusal to show their license. Only borrow through reputable and licensed lenders, like the ones on WeLoans’ network.
What’s the Total Loan Cost?
Many people make the mistake of assuming that they only have to repay what they borrow. However, that’s not the case. Lenders need to gain profits by adding service charges and interest rates that the borrower needs to repay along with the original amount.
Rather than putting yourself in more debt than you started with, it’s a good idea to calculate the total you’ll need to repay. Lenders already mention the fee and APRs of a loan, so add those up. Most lenders charge 18-36% APR. Meanwhile, service charges are usually a fixed amount. Miss a repayment deadline, and you’ll need to bring in the additional interest rates.
Can You Repay the Loan?
You’d think this question should only come up once you’ve taken a loan. However, if you don’t have a repayment plan sorted, you’ll likely run into more financial troubles.
Ready to see if you can repay the loan you’re about to get? Check your debt-to-income ratio. While online lenders don’t need a good DTI, it’s best to borrow if it’s below 43%. Otherwise, you’ll run into the risk of repaying your previous debts, getting through necessary expenses, and not having enough to repay this loan. If you’re not great at maths, simply calculate your upcoming total expenditure and see if you have enough to repay the loan. If you can, make a proper repayment plan so there are no last-minute mistakes.
Applying for a loan, especially with minimal criteria, sounds easy until you’re facing the hardcore reality. Rushing into a decision is never a good idea, so you should ask yourself the questions above to glide through the process.