Have you found yourself in a tight situation when it comes to your finances, and are wondering if you’ll be in just as much trouble if you try to borrow money on the side? That’s where lenders like student loans and payday loans come into play. But with both of these, there’s a huge risk factor involved. A credit check is the foundation for lending out money, so without one, your chances of receiving loan approval is cut significantly.
Payday Loans
Payday loans have been the go to loan option for many people due to the low amount of money required to secure a payday loan, typically between $100 and $1000. Unfortunately, because it’s such a popular option with many people who are in need of cash, some lenders will take advantage of desperate individuals by overcharging them for their loan. As an example, you may be charged anywhere from $15-$20 for every $100 you borrow. In the end, you could end up paying almost as much for the loan as you borrow if it’s not taken care of on time.
Personal Loans
These types of no credit check loan are much more considerate to individuals who are in debt because they can be customized to your needs and there is no credit check involved. With this in mind, you can usually receive a loan of up to $25000 without any problems. Now, one of the disadvantages is that the interest rates are usually very high. For this reason, it’s best to only borrow what you know you can pay back.
Credit Cards
Credit cards are another popular option when it comes to financial situations and can come in handy if used correctly. They typically offer lower interest rates and higher security than other types of loans so it’s far more appealing. The drawback is that you can end up in a hole of debt if you’re not careful.
Lines of Credit
Lines of credit, or LOCs for short, offer a way for individuals to borrow money whenever they need it, but the interest rates are usually very high compared to other forms of lending options. If you’re looking to do some home improvements, then this can be a good option for you.
Personal Lines of Credit
Similar in structure to regular lines of credit, they offer lower interest rates and can be utilized in the same capacity. Unlike regular lines of credit, this one is tied into your personal account so it’s considered more secure and you don’t have to worry about getting rejected.