According to BNN Bloomberg, the average Canadian owes $20,744 before you factor in the mortgage. If that’s you, the worst part about being under financial pressure isn’t the debt — it’s how unexpected expenses tend to hit you all at once.
If the car transmission needs repairs, the roof will suddenly need fixing. And while the freezing winter temperatures may have all but forced you to turn up the furnace last month, those utility bills can still catch you by surprise.
When you’re short on cash and payday was yesterday, no credit check loans can be a lifesaver. But while they can be useful, you don’t want to jump into them blind.
What pitfalls should you be aware of? How can you make the most of your loan? Read on to see our list of things you need to know about applying for loans with no credit check.
1. The “No Credit Check” in “No Credit Check Loans” Is Real
Not having cash on hand is awkward enough. But when you’re up for a job promotion or you’re moving to a new city, a recent credit application can put you in a really uncomfortable position.
If you were going through the bank or applying for a new credit card, the credit implications would be inescapable. Why? Because traditional lenders will often use your credit history to assess your ability to pay them back.
With no credit check loans, your lender won’t be pulling up your credit report. No, really. They won’t.
Instead, they’ll be looking at factors like:
- Your job situation
- Your current debt levels
- The amount of money you make
In short, they’ll be assessing your overall ability to pay back your loan. So naturally, these loans are often a fantastic fit for people with either bad credit or a need for financial discretion.
2. You Will Need to Verify Your Income
When your back’s against the wall financially, a no credit check loan can be an amazing resource. But just because there are no credit checks involved in the application process, that doesn’t mean that there are no checks at all. No credit check lenders care deeply about making sure you can repay them.
Think about it from a business standpoint.
If someone in Jeff Bezos’s tax bracket asked you for $1,000, you probably wouldn’t hesitate to fork it over. However, would you lend the same amount of cash to someone making less than $100 a year? Not if your living depended on it.
For this reason, no credit check loans are usually extended to people with traditional employers. If you’re self-employed or working for commission, you may have to explore your other financial options.
3. There May Be Lower Loan Limits
So you’ve got some expenses you need to cover. And you’re 99.9 percent sure that a no credit check loan is your way forward. There’s just one question left:
How much can you borrow from a no credit check lender?
If you’re hoping to secure the loan, finish your five-figure renovations, and walk into the sunset, you might be disappointed. But if you need a few hundred bucks to make it through the month, a no credit check loan will put money in your pocket fast.
In other words, these loans can keep you afloat in an emergency. But you’re not going to buy a furnished mansion with the amounts that are typically available.
4. Not All Lenders Are Created Equal
If you enter the words “no credit check loan Canada” into Google, you’ll see multiple lenders and money-related websites on the first page. However, even if loans are more or less the same, you have to be careful when you’re choosing a company.
Some lenders will give you the money while charging you a small fortune in interest rates. Others will have set-in-stone repayment deadlines. And some sites are just scams.
When you’re scraping the bottom of your bank account for cash, it can be tempting to go with the first company that approves your loan. But when it comes to your financial and personal data, it’s better to be safe than sorry.
5. Approval Times Can Be Lightning-Fast
Everybody loves the “no credit checks” part of getting a no credit check loan. But there’s another benefit of applying for these loans that people aren’t always aware of:
Approvals happen fast. So fast, in fact, that same-day approvals and deposits are often the norm.
If you need money in a pinch, the bank, with its long underwriting process, may not move fast enough for your weekend repairs. In contrast, however, no credit check loans are designed with the demands of your lifestyle in mind.
6. You May Be Able to Extend Your Loan
Think about the last time you had a deadline crunch at work.
You probably labored over the project for hours. Maybe you worked overtime and pulled a couple of all-nighters to get it done.
That wasn’t much fun, was it?
As a general rule of thumb, smaller loans come with higher interest rates and shorter repayment periods. But even so, not all no credit check lenders are the financial equivalent of a less-than-understanding boss.
Life happens. We get that. That’s why we offer loan extensions to our clients.
Not all no credit check lenders will do that. But we do.
Here’s What It Means to Get a No Credit Check Loan
On paper, no credit check loans hit all the right notes.
There’s no credit check. The money hits your bank account with the speed of a heavyweight boxing champion. And you don’t have to jump through hoops to get approved.
However, while no credit check loans may be a valuable resource, you’ll still need a verifiable income. In addition, you should be looking to borrow a smaller amount of cash.
If you’re looking for a no credit check lender, we give help Canadians find financial relief. We’ll give you the cash you need ASAP. Apply for your loan today.