Well, in a no credit check car loan, the lender does not evaluate your ability to pay back the loan, possibly providing you with a loan that you are unable to repay. This exhibits a greater risk to the lender, to shield their risk and to provide you with a no credit check loan, a car pawnbroker takes in your vehicle as collateral.
WHY WOULD YOU NEED A NO CREDIT CHECK LOAN?
If you start shopping around for credit, sooner or later your credit score will get affected and you may have outstanding debts or court judgements against you. Even credit card bills if paid late can have an impact. When your credit score starts to fall, it can be harder to apply for finance successfully. In addition, repeated access of your credit file by lenders can be viewed as a red flag, which could worsen the problem.
Banks and other traditional financial institutions generally stay away from people with bad credits. People with bad credit score include those who have unpaid debts, cancelled credit cards due to failure to pay back, closed accounts because of bounced cheques and so on. During the loan application process, even if this information is not revealed, banks and lending firms still have a way to know the credit background of the applicant. This is possible through a process referred to as the ‘background check’ or ‘credit check’. Most of the applicants fail at this particular stage – the moment they know the credit history of the applicant, their loan application ends up in rejection. This situation force such individuals to look out for other sources from where they can get no credit check loan with ease.
WAYS TO GET A LOAN WHEN YOU NEED IT THE MOST:
RESOLVE ALL YOUR FORMER CREDIT PROBLEMS
The fact is unless you resolve all your former problems, you can’t possibly run away from it. Moreover, this is the only way through which you can get a chance to qualify for a cash loan the next time when you need it. To repay your debts, you may have to buy time by applying for debt restructuring. To get better repayment terms, try negotiating with your creditor/ lender. When you are able to resolve these problems, then it would be easier to get cash loans the next time around.
GET SOMEONE TO ACT AS A GUARANTOR
Finding a guarantor is not an easy task; however, if you’re able to find a guarantor – may be your family member, a close relative or friend whose credit standing is good, then most likely your credit won’t be checked. The guarantor will co-sign the loan with you. This means, if you’re not able to pay back the loan, then the bank will catch the guarantor. In case, you’re unable to fulfil your commitments, then it can also hurt your relationship. Nonetheless, finding someone to agree to become a guarantor remains a challenge.
VEHICLE PAWN LOANS: AVAILING COLLATERAL LOAN FROM A CAR PAWNBROKER
The easiest way is to obtain a no credit check vehicle pawn loan from a car pawnbroker. It is also referred to as collateral loan because you get loan money in lieu of your car. You need to be over 18 years of age, own the Rego papers or vehicle’s ownership documents, your car and its key.
The process is simple: When you drive your vehicle to the car pawnbroker – your vehicle will be evaluated and a loan against car will be offered to you within minutes on the same day. If you agree, you sign the papers and walk away with the loan money. However, you need to be very careful with the pawnbroker’s loan repayments, failing which you could lose the ownership of your vehicle.
Nevertheless, if you want to sell away your old or dated car, pawnbroker could offer a good deal, so ensure you also check with the pawnbroker before you sell off your car for a cheap price or junk it.