What is a No Credit Check Loan?

In the world of finance, there are lots of different services, products, institutions and terms. In order to learn how money works and how to get access to it, it’s important to be educated on the different aspects of the financial industry. One financial service that many people don’t quite understand is that of the no credit check loan, or sometimes referred to as “pret sans enquete de credit“. Here, you’ll learn more about what a no credit check loan is and how to get one.

What is a No Credit Check Loan?

By definition, a no credit check loan is a type of loan that doesn’t require an institution to perform a hard inquiry into an individual’s credit in order to apply for it. Essentially, it’s a loan you can get without your credit history being a factor that is considered. That being said, just because your credit won’t be checked, there is still no guarantee of approval. Lenders are still likely to look at other factors such as income and collateral in order to decide whether or not to issue out the loan.

Where Can You Get a No Credit Check Loan?

There are a number of different places you can go to in order to get a no credit check loan. Some of the most common places to get a loan like this include payday lenders, auto title lenders, friends and relatives and pawn shops.

PayDay Lenders

This is one of the most common places to get a no credit check loan. You’ve likely seen advertisements online or on tv showing payday lenders offering a sum of money that they want to recover with your next paycheck. You’ll likely pay a fee to get instant access to cash in this way, but it is one avenue to get money if you need it right away. It’s just good advice to make sure you have security in your next paycheck to allow for borrowing from it today.

Auto Title Lenders

Many auto title lenders offer loans with no credit check. Typically the way they do this is by using the car title as collateral.  You can then usually borrow up to 25% or 50% of the value of the car, and usually have to pay it back within a month’s time. As far as total loan amounts, you’re probably looking at a dollar amount between $100 to $5,000 on average.

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