Thinking about taking a loan anytime soon? Most loans will feature a credit check near the start of the application process. There’s a growing amount of people now that look for loan options that bypass the dreaded credit test. Here, we’re going to cover some of the most important reasons that loans with no credit check are becoming increasingly attractive to so many borrowers.
Let’s get going!
Credit checks are bad news if you have a poor credit score
One of the main reasons for people to dodge the credit check is because they have a bad credit rating. Your rating lets banks and other loan providers know that your past experiences with borrowing haven’t gone so well. They see this as really strong evidence of your lack of ability to pay back what you owe, so they’ll more than likely refuse anyone that has a score below a certain point.
At Cigno Loans, we don’t assess people based on their credit history when they apply for our short-term loans. Your credit score only says so much and we believe even those with bad credit should be allowed a chance to prove themselves able to borrow successfully. The most important thing we look for is your main source of consistent income. As long as we can see that you can afford to pay what you owe us when your next payday comes in, we’ll be happy to make you a loan offer.
Having no credit checks saves time
Loans with no credit check are a whole heap faster than loans with full checks. That’s why applying for a personal loan from a bank takes so much time. They have so many more processes to deal with than we do. We can provide instant payout loans within 24 hours of your application being approved. In some cases, we’ve even had the money paid out within a few hours.
This kind of same-day speed is impossible if you insist on running credit checks. When money is an issue, time can be everything. We understand that when you have an urgent cost to settle right away, you can’t sit around waiting for the money to be paid to you a few weeks or days down the line. You need it as soon as possible. This is the main reason we’ve structured our process to enable lightning fast payouts direct to your bank account.
Saving is hard when you live on a limited budget. Ideally, everyone would have a safety fund to fall back on when things are tight. If you’re still working on building yours, and a huge emergency cost has turned up out of the blue, your options can be quite limited. Our fast short-term loans are designed to be there for you when you need just enough to get you to your next payment from work. We offer up to $500 for first time borrowers and our website allows you to apply for any amount you need below this level.
Refusal based on credit can sometimes hurt your score further
Have you ever tried to apply for a credit card and been rejected only to find that the failed application has actually driven your score down even lower? This is one of the most frustrating things about the credit check system. Not only can it be really hard to access the credit you need if your score is less than perfect, but being rejected can damage your rating even further.
You might have a stellar record in your bank account history, but still be struggling to access credit due to a low score. This is another reason why more and more people are dodging credit checks altogether. Sometimes it’s best to go for loans with no credit check than taking the risk of applying for one that’ll set your rating back even more if you’re not accepted.
There they are! These are the main advantages of seeking a loan that is based on your current income rather than your credit score. We hope you’ve found this review helpful and will be happy to help if you have any further questions about our loan application process. Feel free to get in touch or leave a comment below for more information.
Read more about no credit check loans here, or in our previous blog post: Why No Credit Check Loans are Your Solution to Unexpected Expenses