Do Short Term Loans with No Credit Check Really Exist?
In reality, lenders do not provide short-term loans with no credit checks. Due to growing demands for short-term loans and borrowers’ concerns over their credit scores, several lenders may claim to give short-term loans without any credit checks. However, this is not true.
Regulations require all direct lenders to carry out credit checks on every loan application. Moreover, there’s no way a lender will know whether you can keep up with repayments without checking your credit history. Therefore, you should beware of lenders who claim to offer a short-term loan with no credit checks as they might be scammers.
However, you can expect soft credit checks from lenders like the ones we work with at WeLoans. These checks will have little effect on your credit history. They are only in place to check your proof of income and alternative credit sources. This is much safer than getting offers from lenders that do not require any form of credit check.
Is It Possible to Get Short Term Loans with No Credit Check Through WeLoans?
No, it is impossible to get no credit check loans. Regulations require every private lender to carry out some form of credit check before loan approval.
As an independent broker, WeLoans does not conduct credit checks or offer loans. Instead, we link you with a long list of reliable partner lenders to increase your chances of getting loan approval.
We work with reputable lenders who will pull your credit to be sure that you are qualified for the short-term loan. Our partner lenders implement soft credit checks, examining more relevant information when considering your loan application.
These up-to-date checks are aimed at assessing your ability to repay the loan. The elimination of hard checks will increase your chance of getting a short-term loan.
How Does WeLoans Compare?
|Why Use Us?|
|How much am I allowed to borrow?||Up to $35,000||No hidden fees or charges|
|What are typically the loan terms?||Up to 36 months||Various repayment options|
|Do lenders check my credit?||Yes||Soft search only|
|Do lenders take bad credit?||Yes||Bad credit considered|
|Chances of approval||Good||Quick turnaround|
|How to apply?||Apply online||No paperwork needed|
Why Do Lenders Check My Credit?
Whenever lenders check your credit, they want to assess the kind of borrower you will be. Running a credit check and going over your credit report will help them understand how well you’ve managed credit over the years. It is a way to judge your financial trustworthiness and ability to make loan repayments based on your past financial behavior.
A credit check often shows the following:
- Your personal information, including name and date of birth
- Your contact address and address history
- Current account overdraft
- Accounts where you’ve taken out a credit
- Public records
- Financial links to other people
- Fraud and identity theft
Low credit balances, paid-off accounts, and a good record of timely payments will work in your favor when you need to get a loan. On the other hand, late payments, accounts in collections, and maxed-out credit cards tend to paint you as a potential unreliable borrower.
Can I Apply for a Short Term Loan with Bad Credit?
Yes, you can apply for short-term loans for bad credit from the lenders we work with. We believe that your credit history should not hinder you from getting the short-term loan you need. Thankfully, an extensive list of direct lenders agrees with this, giving you access to the short-term bad credit loans you need.
Submit your information through WeLoans, and we will provide you with a long list of lenders who will most likely approve your loans and give you suitable terms. This way, you can quickly compare the different options available and eliminate worries about your credit score affecting your loan application.
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Pros and Cons of Short Term Loans
Short-term loans help you cover emergency expenses or loosen tight budgets to get the things you need. However, before you dive into it, there are a few benefits and drawbacks to keep in mind.
The approval process for a short-term loan is typically not as long as other loan types, and you can complete the whole process online. Once the lender approves your loan, the payout can be as fast as one business day, depending on the lender’s conditions.
Opportunity for people with bad credit
Many short-term loan lenders often put small emphasis on a credit history before approval. Your proof of steady income and employment and your bank account information is enough in most cases. This is good news if you have bad credit or limited credit history.
High interest rates
Many short-term loans are often associated with higher interest rates than longer-term loans. These higher interest rates will translate to higher payments at the end of the loan term.
Potential damage to your credit score
Failing to repay a short-term loan as agreed with your lender can negatively affect your credit score. Outstanding short-term loans tend to increase your debt-to-income ratio, affecting your potential to borrow money in the future.
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How to Improve My Credit Score?
A bad credit score may be a hindrance to getting loan approval. If you look toward improving your credit score before taking a loan, the following tactics will come in handy:
Review Your Credit Report
Checking your credit history at intervals is a great strategy to improve your credit score. A credit report review will reveal any mistakes, discrepancies, and potential fraud cases on your report. Discovering these early enough will allow you to dispute the discrepancies with the credit bureau providing the information.
Don't Miss the Payment
Payment history is a crucial part of a credit report, making up 35% of your score. Therefore, missing or defaulting on payments may negatively impact the credit score. To keep the score high, ensure that you pay all your bills on time.
Cut Down on Your Current Debt
Another crucial part of your credit score is credit utilization, which makes up 30%. If you use over 30% of your available credit, creditors may interpret it negatively. For instance, if you use a credit card with a $5000 limit, it is advised to keep the amount you use below $1500.