Among the disadvantages of money matters come in the form of financial emergencies. The timing is inconvenient most of the time, and you hardly have the cash to deal with them as they crop up. You may even search for sources that may help you, with no success.
This forces you to consider borrowing a loan, but your credit score (as about 33% of U.S. credit scores) is below ‘fair’ level, which means below average. This can be discouraging, especially in the case of borrowing money from financial institutions, even though you may be earning significant income that allows you to pay back the money in a short period.
Note to readers: We would like to clarify that we are not affiliated with any lender or broker. We do not make decisions about lending, neither do we influence the decisions that lenders take. We do not have any role in evaluating an applicant credit and we do not lend out money either. All decisions taken by lenders are independent and we are not responsible for their actions.
Accessing credit without a bank account is not what you might think
Access to credit without a bank account is extremely difficult. This happens to be the case because credit loan lenders also look for some kind of assurance that you will pay them back. Just because credit loans do not come with extensive checks and conventional processes, that does not mean the lender will not evaluate your file thoroughly. The evaluation may happen in several ways.
The concept of No credit check loans
For you to understand this concept, you should know that lenders usually perform credit evaluations of potential borrowers.
When it comes to installment loans no credit check, however, the situation is slightly different: you are in dire need of money for emergency reasons, and you take out a loan – but the lender does not do hard credit checks on you. For instance, they do not examine aspects such as collateral.
This is because aggregators manage most of the online loan lender websites instead of actual lenders.
It just means that they do soft credit checks that are minimal, and this is in order to establish:
- Your identity
- Your previous repayment history (in case you have taken out loans before)
- Your ability to pay back the loan
When the lender verifies that the borrower passes the checks, and the applicant have a steady source of income, then the loan is approved to the borrower.
Installment loans that lack credit checks
Guaranteed installment loans direct lenders only are typically unlike regular loans since the lender grants them without many requirements and they are online.
When the loan is approved for the borrower, he can have the money deposit in the bank account even on the same day. This quickness of processing transactions is due to the short loan application form that does not need much paperwork, resulting in faster processing times.
Note that we are not suggesting that no credit check installment loans must be accessed from direct lenders only; we are just saying that it is good to consider it as an option. In addition, keep in mind that this is a contract between the lender and you.
Possible benefits of bad credit installment loans direct lenders only
- Stellar credit scores may not always be required
- Lightening fast transaction speed, even more so during regular working hours on weekdays
- Collateral not a necessity
- Higher convenience as compared to traditional borrowing
- Direct lender would maintain confidentiality and is a source of instant funding
- A quick way of addressing emergency situations
The acceptance rate for loans is relatively much higher. Another added benefit is the absence of any extra processing fees. The whole process is less time consuming as no extra information is requested from you.
If data privacy and consumer confidentiality is what worries you, then fear not. The entire application for a payday loan is filled and processed online. The decision on your application also comes in quickly. The authorities have also placed strict laws to protect your sensitive personal information.
Are installment loans without checks a better option than traditional loans?
Every short-term loan has its own level of risk, and installment loans are no different. However, they can be a reasonable alternative to traditional loans.
Conventional loans are offered as per a borrowers income levels. They also have a fixed repayment schedule. There is a time limit and a borrowing limit in a conventional loan. Hence, even if a borrower wanted more money, he/she cannot possibly go beyond a certain level (constrained by income).
It is also important to refrain from financing a lifestyle by constantly borrowing and then making repayments on those borrowings. If this is indeed the case, then installment loans present a useful alternative.
Banks and traditional financial institutions aren’t too keen on lending to customers with bad credit scores. People with a less than desirable credit score can find installment loans as a useful option. Keep in mind that installment loan lenders also evaluate your financial standing.
They still want to establish your ability to repay the loan. For that, they will analyze your household monthly revenue and other details. The difference between them and a traditional lender is the flexibility with which installment loan lenders go about this process. They are not as strict as conventional lenders might be.
Installment loans without credit checks may be a viable option if you are struggling with your credit score, compared to traditional loans. However, they are not the sole solution out there, and it is good if you explore other financial solutions.