How Does Financing with no Credit Check Work?
If you’re thinking about getting a personal loan but don’t have a credit check, you might be worried about the outcome. In fact, if you want to borrow money but are conscious of your previous credit history, then you’ve probably been frantically searching the internet for a local no credit check company. Sound familiar? Don’t worry, you’re not alone, with recent statistics showing that 16 percent of Americans have no credit score and an even higher percentage said to have a poor credit rating.
You’ll be pleased to hear – and believe it or not – that getting finance without a credit check is actually possible. But how does financing with no credit check work? Here, we explore.
What is financing with no credit check?
In short, financing with no credit check is when a lender won’t review your credit score or credit history when initially deciding whether to give you a loan or not. With certain lenders, like Zip Loan, borrowers might even be able to get their hands on larger sums of cash with no credit check financing.
A no credit check loan might be the most attractive option for those wanting to get their hands on cash fast, as well as those with a low credit score or no credit history.
What is a credit check?
A person’s credit history shows lenders how responsible that person is when it comes to repaying their debts. This can be taken from several sources, including banks, credit card companies, and collection agencies. From this, a credit score can be devised.
If a lender isn’t reviewing a borrower’s credit score or credit history, it might be a riskier move for them. So, if you are considering applying for finance with no credit check, make sure you’ve researched the terms and conditions first.
Will a lender check anything else, if not a person’s credit score?
If a lender isn’t looking at a person’s credit score, they might ask to look at alternative documents to determine a borrower’s best financing options.
Take Zip Loan, for example, who could ask to see the likes of your tax return, employment history, education records, and bank statements to be sure that you are eligible for a loan from them.
How to shop for finance with no credit check
If you feel borrowing from a lender who doesn’t require a credit check is the best option for you, it’s always important to remember to:
- Find a lender that assesses your ability to repay, just like Zip Loan. As mentioned, Zip Loan asks for alternative documents, instead of a credit check – which indicates that they want you to repay the loan, instead of anticipating you’ll fall into a borrowing cycle.
- Understand the repayment terms. It’s in your best interest to be aware of the repayment terms and conditions, so you can schedule and budget for future installments.
Are you ready to apply for a loan?
If you have a poor or no credit history, get in touch with Zip Loan. We understand that not everyone has the perfect credit score, and we are here for you. Contact a member of our team today to discuss your options.