How to Shop for a No Credit Check Loan

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The lending industry can be confusing and difficult for anyone, but it’s even more painful to navigate if your credit score is low.
There are “no credit check loans” you can find online or from storefronts, but you can practically see some of those predatory lenders salivating at their chance to take advantage of you.
Speaking of salivating, you know what’s simpler than finding a loan? Shopping for food. If only finding a no credit check loan could be as simple as a trip to the grocery store.
Thankfully, there are a lot of similarities. Read on and try not to get too hungry.

Make a List of What you Need

A grocery list allows you to stay focused while shopping, making sure you pick up everything you need and hopefully not buying too many items you don’t.

When you’re looking for the proper “no credit check” loan, it’s also a good idea to have a list of your needs.

You should figure out exactly what you’ll be able to pay, how long you’ll have before you have to pay it back, whether you might have collateral that you’d be willing to put up, and if you have anyone with better credit who might be able to co-sign.

A list is even more important when it comes to loans than when it comes to groceries. The worst thing that might happen if you leave your grocery list at home is your house spends another week banana-less.

The worst thing that’ll happen if you take out a loan you aren’t prepared for is crushing debt and bankruptcy.

Compare Different Brands

When it comes to certain products, you probably have a favorite. You don’t care that “Toasted Wheat Chippers” are cheaper and healthier. You love “Frosty Bran-Os,” and when you choose a cereal, you’re bonded for life.

But when it comes to milk or butter or broccoli? You might as well compare the different options to find out which is the most affordable while still providing everything you need.

For loans, you want to make comparisons too. And just like with food items, it’s important that you’re searching out the most affordable option that will get you what you need.

But here’s where things are a little different. While most items in a grocery store will be clearly labeled for your convenience, a lot of lenders would rather obscure just how much their loan will cost you.

That’s why you should be sure to compare different loans in terms of their APR, or annual percentage rating, which is a number that tells you the total cost of a loan, including fees and interest.

Hopefully, you’ll be able to find a loan that you can afford and still have money left over for those tasty Frosty Bran-Os.

Read Those Labels Closely

One thing lenders and food manufacturers have in common is that they love to hide any negative facts very carefully.

Sure, that tea drink is ORGANIC and ARTISINAL and it has a lovely picture of a sunset on it, but turn the bottle around and you’ll find out that it has approximately 900 grams of sugar (give or take).

Lenders are the same way. They’ll try to tell you the good parts upfront while hiding the bad stuff. They have big flashy signs that tell you NO CREDIT CHECK and INSTANT CASH, but you won’t be seeing SHORT PAYMENT TERMS and HIDDEN FEES shimmering in neon.

That’s why it’s important for you to turn around the (metaphorical) bottle and read the fine print. In this case, that’s asking your lender the right questions and making sure you’ll have a payment plan that you can afford that won’t get you stuck in a cycle of debt.

Get Only What You Need

They say never go to the grocery store hungry, because you don’t want to fill up your cart with more food than you could possibly eat before it expires. If you’re not going to eat it or you won’t have room in the fridge, then you just wasted money you probably can’t afford to waste.

It’s the same idea with no credit check loans. Even the best no credit check loans are going to have higher interest than loans that require good credit to get.

Assuming you aren’t in desperate need of a loan, it’s worth the effort to get your credit score up first. And what’s the best way to do that? According to Miron Lulic (@MironLulic), the founder and CEO of SuperMoney, “There are plenty of strategies anyone with a subprime credit score can take to rapidly increase their score. For example, setting up one or more secured credit cards and using them responsibly is a great way to establish credit.”

Make Sure They’re Making Sure You Can Pay

Imagine that you’ve brought your cart of groceries to the register, and instead of scanning each one, the cashier just tells you to go on and take them. “It’ll all work out,” they say, with a suspicious smirk.

Sure, this seems nice, but you would be correct to wonder just whom “it’ll all work out” for. Unless you won some sort of contest (and then you would have noticed the balloons), they aren’t going to let you just keep those groceries without making sure you can pay for them.

Similarly, it’s suspicious if a no credit check lender seems totally unconcerned about your ability to pay back your loan.

Even without checking your credit score, a lender should require some proof of income or bank information. They could also perform a “soft” credit check, which is a credit check that doesn’t negatively impact your credit score.

If they seem totally unconcerned about your ability to pay back the loan, it probably means they don’t care if you’re able to pay back the loan. And that’s a problem. Because it means they’re likely trying to trap you into paying a rollover fee to extend your loan, which is a surefire way to get stuck in endless debt.

Know Where You’re Shopping

Obviously you can’t go shopping if you don’t know where the supermarket is. It seems almost silly to mention, but yes, you’ll want to find out where it’s located before leaving the home.

Lenders are the same way, but since so many of them allow you to take out a loan through the internet, you could “shop” there without knowing their location. But you shouldn’t!

Sally Elizabeth of PeopleClaim.com (@PeopleClaim) warned us about the danger:

“Check the company’s real location. Companies based overseas or in sovereign Native American territories may not be bound by the same rules as US lenders. One claimant thought she was dealing with a Delaware company, but she wasn’t. She ended up paying 780% interest.”

Elizabeth also points out that finding the location isn’t always easy: “The location of the company may not be obvious; a website might show, for instance, a Delaware address. But drill down into the website’s terms and conditions or privacy policy. If you find an address in the Caymans, the Virgin Islands, or a Native American or First Nations territory, then buyer beware.”

Just be sure to keep all of these things in mind and you’ll have the most delicious… er… painless loan experience possible.


About the Contributors:

Sally Elizabeth, works for online dispute resolution platform PeopleClaim.com, helping people who are normally shut out of the legal system because of time or money. Weeding scams out from common consumer complaints has taught her way more about scammers than she ever wanted to know.

Miron Lulic is Founder and CEO at SuperMoney – a website that helps people compare financial services and get financial advice. Millions of people trust SuperMoney when shopping for loans, investments and other financial services.