No Credit Check Loan Types

There are several types of no credit check loans available to US consumers. Many of these loans are available online. One type of no credit check loan is a payday loan. These loans are high interest loans on a short term basis. Some states offer car title loans based on the value of the vehicle, also with high interest but with a longer payment plan for repayment.

The fees and interest charged on no cost loans is much higher than obtaining a loan through a bank. This is mainly due to the fact that these companies are taking a risk by lending money to someone without checking their credit history. If the company is an online resource, they must adhere to the laws for the state that you reside in.

 Laws Vary by State

Every state has its own set of laws regarding the issue. In some states, payday loans or loans not obtained directly from a bank are completely illegal. It is important for consumers to research the laws for their state prior to seeking out a no credit check loan. It is also the consumer’s duty to research the company that they are considering obtaining a loan from before going forward with the process.

Using online resources for a loan can be very risky. Users are at risk for having their bank accounts compromised or having unexpected fees withdrawn if they default on these types of loans. Some consumers attempt to take a loan from an online resource and use checks from closed bank accounts. This is a criminal act which can cause the user to incur additional fees, fines and criminal charges.

 Types of Loans Available

No Credit Check Student Loans

Quick student loans are available online with no credit checks. For this type of loan, the student in need would have to provide valid school information to prove that they are enrolled. Only students are eligible for these types of loans. They are high interest and do have additional finance fees or administrative fees attached. Payment plans are a bit more flexible with student loans.

 Payday Loans

These loans are not based on credit but are based on the income verification provided. Every state has their own set of regulations regarding payday loans. No credit checks are required; the borrower must prove that they have the income to repay the loan. The terms for these loans are generally 14 days, but can be extended up to 31 days in some states. High interest rates and finance charges do apply and do vary by state. In some states, payday loans are 100% illegal, even if they are obtained online.

Payday loans can be dangerous due to the short term nature of the loan and the financial ruin that they can cause the borrower. Payday loan companies are authorized to deposit your written check if the loan is not paid per the terms of the loan agreement. This can put a bank account into overdraft status, causing more financial hardship. Be sure to review the laws for your specific state regarding payday loans prior to obtaining one and research the loan facilities in the area first.

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 Vehicle Title Loans

Obtaining a vehicle title loan is an option for some consumers in the United States. Persons that have a clear vehicle title, with no liens, may qualify for a loan for up to the value of their vehicle. Pay stubs may be required; this varies by state, to ensure that the borrower can repay the loan on the terms stated. Along with all other no credit check loans, these do accrue interest at an inflated rate. The difference between this type of loan and other no credit check loans is that if the loan terms are not honored by the borrower, the loan facility can obtain possession to the vehicle until the loan is paid off.

This stipulation encourages the borrower to repay the loan on time when the payments are due. Some states will allow extensions on the payments for vehicle title loans. These extensions also cost the consumer additional fees.

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 Mortgage Loans

If a company is offering a no credit check mortgage loan, beware. These companies are often fraudulent and often lead consumers down a path of deception. Personal information can be compromised. No company should provide a mortgage loan without a credit check. This is far too risky for consumers as the few legitimate companies for this type of loan have the same stipulation as vehicle title loans. If the loan is not repaid per the terms of the loan, the home can be foreclosed on or repossessed by the mortgage lender or short term loan facility. Additionally, entering mortgage information online is a risk in itself and all consumers should bypass this option at all costs.

 Click here to keep reading about no credit check mortgage loans.