Overview
No credit score loans offer quick funds to help you cover immediate expenses. The application process is simple and straightforward and takes place entirely online. You may get funds deposited directly into your bank account in as little as 24 hours! Due to the higher perceived credit risk associated with subprime borrowers, it’s important to review the pros and cons of such loans and see whether they’re the right choice for you at this time.
No Credit Score Loans: Who Are They For?
No credit score loans are designed for subprime borrowers i.e. individuals with less-than-perfect credit scores, who may lack a credit history.
Factors that lower one’s credit score may include the following:
- Late or missed payments
- A high credit utilization ratio (above 30%)
- Consistently high credit card balances
- Lacking a credit history e.g. as a newcomer
- Only making the minimum payments on your credit cards
Due to lower credit scores as well as, potentially, limited or absent credit histories, subprime borrowers are perceived as presenting a higher credit risk to lenders.
Should You Take Out a No Credit Score Loan?
If you’re a subprime or near-prime borrower looking to borrow funds online, it’s important to weigh the various pros and cons of no credit score loans:
Pros
- Fast access to funds.
- No credit check.
- Installment loans may offer a longer repayment period and greater flexibility than payday loans.
- You can cover immediate expenses such as rent, mortgage payments, car repairs, medical bills, and more.
Cons
- Higher interest rates and fees due to elevated credit risk.
- Late payments or missed payments may result in additional charges and fees.
Make an Informed Decision
Before you take out a personal loan, it’s important to weigh the pros and cons carefully. Assess your repayment capability e.g. whether you can afford the monthly payments. If you feel that the pros outweigh the cons, feel free to apply for a personal loan online.
Conclusion
Once you’ve reached a decision, you can apply for a personal loan online via Friendly Lender. We don’t check your credit score or credit report during our simple and quick online application process. To monitor your credit score and automatically detect errors on your credit report, sign up for Credit Verify! The registration process is quick and easy and takes place online.
