What are the advantages of small loans with no credit check?
So what are the advantages of small loans with no credit check? Here are some of the top benefits of choosing this option during the times when you need money.
One of the greatest advantages of a small loan that doesn’t require a credit check is that you can get the money you need in a short amount of time. As long as you can supply the required documentation (which includes proving that you’ll be able to pay back the loan) during business hours, you can get the money you need the same day you complete your application. If you turn in your application after business hours, you can typically get your money early the next day.
This fast delivery can make all the difference when bills are due or if you need to make an emergency purchase. In emergency financial situations, a single day can mean the difference between whether or not you avoid a hefty fine or get kicked out of your apartment. By getting the small loan you need when you need it, you can resolve your current financial problem and then get to work repaying your loan.
Bad Credit Isn’t a Problem
Another primary advantage of small loans with no credit check is that any past credit issues you’ve experienced don’t impact your ability to take out a loan. There is a wide array of factors that can negatively impact your credit score, including late payments on credit cards, previously defaulting on a loan or other payment, or foreclosure.
However, even situations where you’ve been financially responsible can hurt your credit score. A short credit history, or simply having only credit cards or only loans can actually lower your credit score, even if you make payments on time.
With bad credit, lenders that check your credit score will often limit how much money you can borrow. In many cases, you might not even be allowed to borrow at all — and when you’re in urgent need of money, this can be disastrous.
Obviously, this isn’t an issue with small loans that don’t require a credit check. Qualification for your loan is based on your income level. After all, this is what truly proves your ability to pay back your loan.
No Effect on Your Future Credit Score
When taking out emergency loans, people often fear how their loan will impact their credit score. It’s common knowledge that hard inquiry credit checks can damage your credit score, which could ultimately hurt your ability to get good rates on future loans.
This isn’t a problem when taking out small loans with no credit check. Because a credit check isn’t required to qualify for these loans, there won’t be an inquiry to show up on your credit report in the first place. This way, taking out a small loan today to cover a financial emergency won’t hinder your ability to get a good rate on a mortgage or other major loan.
Small loans with no credit check shouldn’t be used frivolously, but as these benefits demonstrate, they can make all the difference during financial emergencies. By allowing you to get the money you need regardless of your current credit situation, these small loans will help you get through any financial situation.