Having money worries might feel like a lonely place at times. But you aren’t alone. Did you know that as many as 16% of people have a bad credit history?
But it’s not all bad news. Contrary to popular belief, you can still get credit, even if you currently have a terrible rating. The answer is to find a provider that offers no credit check loans.
Here are five fantastic tips for finding the best financial loans on the market, whatever your circumstances.
Figure Out the APR
We all make a few mistakes in our youth, and a poor credit rating is sometimes annoying and can catch up with us later on in life!
Fortunately, it doesn’t need to limit your lifestyle now, especially if you need a loan for something vital. That’s why finance companies came up with no credit loan products.
However, you don’t want to repeat the errors of your youth (who does?). But that’s always a risk when taking out a no-credit loan, as you’ll need to cover the loan interest cost.
You’ll need to shop around for a good deal to pick an affordable loan.
The first thing you should do when comparing no-credit loans is to take note of the APR (the annual percentage rate). All loan providers publish this figure, including us, and we believe we offer one of the most competitive rates.
It’s worth putting together a spreadsheet listing every no-credit loan and their APR so that you can sort them from smallest to highest.
Don’t forget to make sure you are using the most current published figure, too, as loan companies can often raise these rates depending on what’s happening in the rest of the economy.
Think About Timing
A loan with no credit check doesn’t mean zero checks, and most loan companies will still want reassurance that you can repay the loan.
They’ll look at other financial considerations without reviewing your credit history, including income and job.
One of the things that will work in your favor is to have a solid long history working in the same job, showing a regular salary month after month. So this is where timing comes in handy.
If you are thinking about moving jobs soon, apply for a loan before you make your move.
Conversely, suppose you are in a new position. In that case, it’s worth waiting until you have passed your probationary period and can provide you have a reliable, steady income.
If you want to get truly smart with your timing, you could also clue yourself up on economic forecasts to make an informed prediction about future interest rate rises (or falls).
Use It to Repair Your Credit Rating
A loan might seem attractive right now, but is it vital?
Do you need those home improvements, or can they wait? Should you hold off on that car purchase even though your current one looks like it might not survive the winter?
Your strongest instinct might be to forego a loan instead of applying for a bad credit loan.
But there’s an added financial benefit to this type of loan that you probably haven’t considered, and it’s this.
These fast loans can help job repair your credit rating. So by snapping up this loan right now, you’ll make it easier on yourself in the future should you need credit.
Of course, that does come with a massive caveat. You’ll need to keep an impeccable repayment record this time round.
Make sure you keep your financial information in order, use direct debit, and monitor your account to ensure you keep up with the monthly payments on time. Don’t wait for those stern letters to come through your letterbox.
Choose an Alternative Lender
No credit loans offer you plenty of choices when it comes to providers. You don’t have to stick with the brands you know or the banks you’ve visited.
Nowadays, many new and exciting financial products are on the market. Here are two alternatives for you to think about:
There are two ways to think about private lenders. The first is entirely personal and has no ties to financial markets. Parents and friends fall into this category.
But there are other types of private lenders, such as peer-to-peer lending. These might be a good option if you need a loan for something like a new business venture.
There are plenty of niche providers that might be perfect for you. For example, some specialize in small, short-term loans ($500, for example) that you repay over weeks and months rather than years. That might perfectly fit your needs.
Or you might find a lender for the specific loan type you need.
A car loan is the most obvious example, but plenty of other businesses now offer payment installments for purchases. That might fit your needs if you want a loan for a specific purchase.
Consider a Guarantor
Finally, a way to lower the rate you pay on a no credit check loan is by obtaining a guarantor.
A guarantor is usually a friend or family member who offers to back your loan. They essentially sign a piece of paper (albeit virtually nowadays) saying that if you default on your payments, they will cover the expenses instead.
They are your backer. Having a guarantor makes you a much safer investment for lenders, which can often mean you can access a better deal and a cheaper APR.
Ask your nearest and dearest if they’d be willing to help.
If they know you are working hard to repair your credit rating and that this loan will help you, they may be willing to give you that extra support.
No Credit Check Loans: Easier Than You Think
If you need a loan right now, you’ve probably got more options open than you might realize. No credit check loans might be what you need to get out of a financial stalemate.
Why not take that next step by applying for a loan with Kingcash? You can do that by clicking here to begin the easy five-minute form.