No Credit Check Loans

If you have had some problems in the past where bills haven’t been paid, often for very genuine reasons.

You may find your self excluded from main stream borrowing like your major high street bank. You may think that no credit check loans are the best option for you.

Maybe you have a family pet that needs an expensive operation and there are going to be vets bills to pay, or you need to stop your self getting evicted, or you have 30 days to pay a county court judgement before it is in your record for 6 years. Maybe you have gambling debts and you need to pay them off or you will get hit with a base ball bat in the face.

Most sub prime lenders will still do a credit check but have a certain tolerance level of some bad credit so just because a lender says they do a credit check this may not matter.

Doing a credit check allows the lender to protect them selves from fraud as the lender has an opportunity to verify the information you give them against the information they have in your credit report, even if you report if rammed full of defaults, county court judgements and missed payments on catalogues.

Companies that do no credit check loans often charge high fees and very high interest rates as the likelihood of that demographic of person defaulting on the no credit check loan is very high.

Interest only loan borrowing

Most interest only loans come in the form of interest only mortgages.  Usually if you tell a lender that you have another investment vehicle in place to pay off the capital at the end of the term of the mortgage like an ISA, PEP or endowment the home loan lender will let you have an interest only mortgage or interest only loan.

Most personal loans or secured loans are given out on a repayment basis, where the monthly payments include some money for the interest and some money to pay off the capital of what was borrowed.

Many lenders are stopping doing interest only loans as they want their money back sooner because of the credit crunch, and money is hard for the banks to get at the moment.

{ 2 comments… read them below or add one }

Paul Francis July 25, 2011 at 9:05 am

I’m not sure if no credit check loans exist. I’ve heard of paydday providers not carrying out credit checks but they still have to carry out a status check.

Gareth Jones 77 August 8, 2011 at 9:42 am

As the article suggests, most lenders will caqrry out a credit check even if they say they don’t. The only difference is that those lenders that target people with a bad credit history will have more of a tolerence level than prime lenders.