As their names suggest, no credit check loans are loans that don’t involve credit checks unlike normal loans you’ll obtain from the banks or any other high street lenders. The purpose of these loans is to offer an alternative to traditional lending, where not everyone may qualify, especially those who have less than perfect credit.
Reasons to Obtain a No Credit Check Loan
You may need a no credit check loan for the most obvious reason, and that is because you may have bad credit and cannot get accepted for personal loans. It pays to know, however, that not everyone who got refused a loan from banks and other lending institutions necessarily have indecent credit. It could be that you are a newly college grad or a new employee, and have no previous experience with credit yet. It could also be that you are self-employed and are not receiving wage slips every 15 to 30 days. If this is you, you can benefit from a loan with no credit checks.
Additionally, a no credit check loan allows you to obtain cash fast. The benefit of skipping credit checks is that not only can you qualify despite having bad credit, but it makes everything a lot faster compared to getting a loan from the high street. This means very little paperwork to accomplish, and no waiting for days or weeks to get your money.
No credit check loans may either be short or long term, which can be payable between two weeks and 36 months. They can also either be unsecured or secured by collateral. A perfect example of a secured loan is a logbook loan, where the borrower’s vehicle serves as collateral against the loan.
Logbook Loan as Your Perfect Solution
There are many types of no credit check loans out there, but the following are what make a logbook loan stand out from the rest:
Lets you borrow more. Because a logbook loan is essentially backed up by security, you are given access to more cash, which you can release through your vehicle. Unlike other no credit check loans which limit you to about £500 to £1,000 only, with a logbook loan you can borrow as much as £10,000! The more value your vehicle has, the more money you can unleash!
More flexible repayment terms. Unlike other loans for bad credit such as payday loans, you can pay the loan in instalments, instead of a one lump sum. Additionally, the length of the loan is more flexible, which can last anywhere between three months to three years, depending on the amount you borrowed.
Available for self-employed. While other loans may look closely into your employment history, a logbook loan only requires that you have a stable and sustainable income source. You don’t need to worry about having to present pay stubs if you are self-employed and don’t have them, because your bank statement will be enough proof.
Surely it will always depend on your own individual circumstances, but if you own a working vehicle that has some value in it, you might want to consider a logbook loan to help you raise that quick cash that you need.