No Credit Check Loans
You already know that predatory lenders target those who are financially vulnerable (those with low income, little savings and/or bad credit). So if you have bad credit and need a loan, how can you avoid turning to a predatory payday or title loan?
As with any major financial choice, it pays to do your homework. Work with a lender who will focus on your ability to repay your loan rather than just your credit score. Ask potential lenders if they perform a hard credit check (which can further hurt your credit) or a soft credit check (which does not affect your credit score).
Legitimate “soft credit check” lenders will focus on your ability to repay your personal loan. Instead of concentrating on your credit score, they’ll likely want to verify that you have regular employment, a bank account, and will actually be able to repay what you borrow within the terms and conditions of your loans.
Also be sure to ask any potential lenders if they report on-time payments to the credit bureaus. If they do, that means regular on time repayment of your installment loan will actually help you build credit which will help you save money on interest rates in the future.
Bottom line: if you have bad credit and need to borrow money, be wary of language like “bad credit loans” and “no credit check loans.” Look for “soft credit check” loans from legitimate lenders who are highly rated on sites like Google and Facebook. A soft credit check loan can assist you with your current financial emergency and help you build your credit for tomorrow!
Table of Contents:
- How to Protect Yourself from Payday Loans and Predatory Lenders
- Chapter 1: What Are Payday Loans and Who Are the Predatory Lenders?
- Chapter 2: The Predatory Effect of Payday Loans
- Chapter 3: Safer Borrowing
- Works Cited