The financial lending market finally
toned down it's strict lending rules a few years ago by offering loans with no
credit checks. Anyone one suffering from a bad credit history had no chance of
obtaining any form of loan due to past strict regulations. However, as time
went by and a growing list of competitors springing into the financial lending
business, lenders were forced to reduce their requirements and reach out to
those of a less privileged credit history. A typical bad credit history would
include CCJ, default, late payment and also bankruptcy. Anyone with these
credit problems can now apply for a loan with no credit check.
Loans with no credit check is a
thing of recent history, but before then, most banks won't even consider an
application if the applicant had a negative credit history. The advent and
upsurge of banks and loan lenders has created a tough competitive market. This
competitive market has steered lenders to give loans with no credit check, to
avoid them running out of business. Today, anyone with a default history, late
payment and even bankruptcy can stand a chance.
One of the major benefits of a loan
with no credit check is the fact that it helps individuals meet some urgent
financial commitments before their payday arrives. These commitments could
include bills, shopping expenses and a host of other things. An added benefit
of loans with no credit checks is that it helps individuals with poor credit
history to boost their ratings. The credit system rewards people when they make
their repayments on time without default.
When applying for a loan with no
credit check, its important to understand there are two types. Secured loans
and unsecured loans. Secured loans are said to be secured because lenders
expect you to have a collateral. A collateral could be anything of monetary value
that could be used to repay back your loan should in case you couldn't pay it
back. Collateral's can include properties, jewelries, stocks and shares etc.
Secured loans have flexible terms
and conditions. They also carry a lower interest rate than unsecured loans.
Unsecured loans don't require any collateral. Though they carry a higher
interest rate, they're a better option for individuals with no collateral to
put down, in fact they make up a vast majority of most loans with no credit
check.
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