No Credit Check Loans Facts
Getting approved for a loan with poor credit seems like a shot in the dark for a lot of us. And when it's an emergency such as an unexpected medical situation or car repair, you may find yourself looking for no credit check loans since they may seem like your only option to get the financing you need. Unfortunately, loans without credit checks do not exist. Even funding provided by predatory lenders who offer extremely high interest rates that will only put you deeper in debt still requires a credit check. If you're looking for no credit check loans, you may still be able to find funding even with a soft pull.
Why are credit checks so important?
A credit check is exactly what it sounds like – a lender or financial institution reviews your credit report. Doing so helps them determine how much of a risk you would be if you are allowed to borrow money. Unfortunately, when a lender pulls your report for the purpose of assessing your financial stability, this is recorded in your credit report which can lower your score. If you have several hard credit checks in your report, not only will this lower your score, it can cause other lenders to interpret those checks as a sign that you're in desperate need of money. They may think it means that you're not able to manage your money well or that you're willing to get more debt without paying off what you already owe.
Are personal loans with no credit check your only option?
While it is impossible to get loans without a credit check anyway, financial experts always recommend going the conventional route first. You need to make sure that there are no options left to you before applying for no credit check loans. If you do that, you can get a better idea of your chances of approval by checking your own credit.
How do you prepare for no credit check loans?
As we've already mentioned, all lender perform some kind of a credit check. Although, if you do find a lender who relies less on your credit history, there are some things you should do before you start working with them. You must prove to lenders if you want to get a loan that relies less on a credit check. You'll need documents and records that show your full financial profile, specifically your ability to pay back what you owe. Some of the documents that you'll need are:
- tax returns for the past two years
- employment history and pay stubs or proof of paychecks
- borrowing history including payment history
- bank statements
- education records
- documentation on credit card debt