It has been said that around 19.52 million Canadians have taken out personal loans. There’s no doubt that these loans create a lot of interest, however, what should you know before you take out a no-credit-check loan?
You might think that life’s easier without credit. However, if you’re interested in taking out a loan, there are a few things that you ought to know.
Online loans with no credit checks come with a lot of perks. For instance, they often come with competitive rates and flexible terms, plus you get quick cash when you need it.
However, there are some traps to take into consideration. If you don’t know what you’re doing, you could end up in a deep financial hole.
So to learn the key things you need to know before you take out loans with no credit checks, keep reading.
How Does a No-Credit Check Loan Work?
The first thing you need to know before jumping into a fast loan is how it actually works. This means that you need to know how to apply for them and what the process is to get them.
Every loan provider’s money lending process is different, so it’s always important to consider this and also if they let you apply with no credit checks.
However, at Kingcash.ca, getting our fast loans is quite a straightforward process. To start, all you need to do is apply for a loan.
From there you will put in a few details and then send your application off.
If you get accepted for the loan, then you will then be paid for it. This payment can go through as quickly as the same day.
There are some instances when it may take longer than this. However, this isn’t overly common and generally, you should get your payment within a couple of days.
Loan Requirements
When it comes to applying for your loan, there are a few requirements that you should be aware of. So let’s cover those now.
These loan requirements may vary depending on the loan provider that you use. At King Cash, we have our own requirements that you must meet if you want to qualify for our loan.
The first requirement is that legally you must be at least 18 years old to enter into a contract with us.
Your Income
The next requirement is that you have a Canadian bank account that you have been using for at least 3 months. Your employer should also pay you directly into this account.
Another requirement is that you have had a stable job for at least 3 months and a monthly income of at least $1200. Aside from this, you should only have a few, if any, non-sufficient fund transactions.
Personal Information
One other requirement is that you shouldn’t be entering into a consumer proposal or considering bankruptcy.
You should have a low income to debt ratio and very few other active short-term loans or payday loans. Finally, you should be a Canadian citizen to qualify for a loan.
If you meet all these requirements then you can apply for a fast loan and you can even get paid on the same day.
Repayments
Something else that you should be aware of with every loan with no credit check, is that interest is added to it. This interest is normally set and you should check how much interest you can expect to pay.
You should also be aware that if you don’t make your repayments on time then your interest may increase.
The interest rates that you will have to pay can vary from loan to loan, so it’s good to do your research before you get into the loan.
The good news is that some loan providers are flexible so you can spread out your payments.
Consider the Loan Provider
Unfortunately, not every loan provider out there will be right for you, so it’s important to shop around. This not only goes for what deals they offer but also the quality of their service.
There are some loan providers who don’t offer good services and you should be aware of them.
If you don’t look at each one carefully then you may end up getting a loan with the wrong loan provider and that’s the last thing you want.
Here are a few things you should be checking:
Their Reputation
One of the most important things that you can look for in a loan provider is their reputation. If they have a bad reputation then you shouldn’t work with them.
You can look at reviews of their service to find out whether or not they have a good reputation. If they have a lot of good reviews that recommend the service then this is a great sign.
Their Services
Each loan provider may offer different services. For example, some loan providers may let you take out more money than others. Some loans may also come with higher interest rates.
It’s important that you choose the loan provider who has the best service for your needs.
Their Process
Some loan providers say they have a quick process; however, when application requests start coming in, it may be longer than you think. If you need money in a hurry then the last thing you want to do is wait a long time to get it.
So it’s important that you look at how quick their process is. Also, consider if there are any hidden fees that come with their loans as this may end up costing you more in the long run.
Apply for a Loan Today
Jumping into a no-credit-check loan without knowing what you are getting into isn’t a good idea. If you ever find yourself stuck or confused, follow the advice in this quick guide.
Also, if you need some fast cash, then be sure to check out our loan options today.
