We have over 15 years of experience

Bad Credit Personal Loans – No Credit Check?

How can you go about crossing the financial minefield to get a secured personal loan. According to your bank and all the online advertising, it sounds really easy.

Having security gives you a better chance as the bank can take away your asset that was pledged. A lot of people have no assets or do not want to risk it so they would rather pay higher interest because they have bad credit.

currency notes dollars secured by a lock and chain


Bad Credit Personal Loans

You need urgent cash to pay down some expense. In life your car breaks down or you have a sudden bill come in. The amount of cash is in the hundreds or even $1000.

If we all could have some back up money then life would be great but most Americans have very little put aside. To compound to the misery many also have bad credit. This is defined by a FICO score of 610 or less. So if you need a personal loan where can you look? The answer could be a personal loan for bad credit

climbing over his credit score

What is a bad credit personal loan?

These types of loans come in a few forms. Examples are installment loans, credit cards, bank loans, titles loans and some could say a payday loan is also a type of personal loan. The bad credit part is usually dictated by a higher interest rate

Getting a personal loan with bad credit

A bad credit score, less than 610, is not an obstacle to obtaining a personal loan. Our online personal lenders are used to issuing loans to people with bad credit. These lenders  view your credit scores and past credit score history when making a decision to lend you cash. These lenders are a lot more approachable as they charge additional interest to mitigate the risk of bad credit.

No credit check personal loans?

You’re already very aware a secured personal loan no credit check (no hard check) will be tied more often than not to your property or other such collateral (things you own). So in this case you need to be completely certain, you can meet the payments comfortably. If you don’t you could run the risk of losing your property!

Personal loans no credit check direct lender

The difference between a direct no credit check personal loan lender and a broker is that the direct lender is assumed to have better rates. That could be so but when it comes to bad credit all interest is a lot higher than a bank. The ultimate factor is in the terms and conditions of your loan and on the lenders website. Check in the footer to see the APR charged before deciding on a lender.

Do I need to pledge collateral for a personal loan?

This type of loan means you’ll need collateral in exchange for a sum of money at a low-interest rate, the process begins. There are a number of things you’ll need of course, but before you gather these together make sure you check your Credit Score. It should be a matter of routine for you anyway and you can get at least one free credit score each year.

You need to be very clear on your objectives so:

  • How much do I need to borrow?
  • Do I have enough collateral?
  • What’s my loan limit?

If I want less interest with a personal loan what assets can I use?

You can use real estate and even a car or a boat. You might also have financial investments you could possibly use. Banks in general like hard assets like a car or home. The more immovable for them the better.

 

What income do I need to get a personal loan with bad credit?

You will need at the ready proof of your monthly income. Any documents you have will help, and of course, your employment situation needs to be secure for the foreseeable future. It is possible to get a bad credit loan, but a good score will help considerably in your quest to cross the finish line first! But you want no credit checks (i.e. hard checks) right?

Important Things to Note for personal loans and no credit:

‘The most sensible place to start would be at your own personal bank – you’ll probably get the best terms here as a regular customer. Having a no obligation chat won’t do any harm. Take a look at the various other options available to you as your ban’s terms may not be to your liking – in short it pays to shop around.’

happy money mascot with a thumbs up

It may sound obvious but the most important thing is the annual percentage rate or APR. The shorter the term you can get the better it will be in the long run. What you must do is ensure you understand all of the terms and the small print. There could be fees attached for things like late or missed payments.

 

Extra Info

In certain cases, you may be able to use the item you purchase from the proceeds of the loan – but be aware you could get into even deeper trouble if it all goes wrong. It’s called ‘Double Jeopardy’

There are many lenders who will take investments such as stocks and bonds as collateral. This can work well as you can still continue to earn money on them while the lender holds them as collateral.

Good luck with your secured loan. If you are looking for an unsecured payday loan for bad credit then look here.

Avatar

About Jason Rathman

Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.