Millions of Americans are negatively affected by bad credit. In fact, over 43 million Americans have a credit score of 599 or less. This number grows even higher when considering people with no reported credit history.
Poor credit conditions make it difficult to secure traditional financing. This is problematic for people that need a new HVAC system or other pricey kitchen appliances.
The good news is that some lenders offer no credit needed financing. Read on to learn more about this type of financing. Explore 5 things that you need to know and how to find lenders that offer it.
1. What Are the Qualifications?
No credit needed financing is easy to get. There are very few qualifications and the typical standards for a traditional loan do not apply.
Loans of this variety require the applicant to be at least 18 years old. Also, the applicant needs to hold an active checking account. This account must have been open for at least 60 days.
The last requirement is income verification. The applicant needs to demonstrate that they earn $1200 or more per month.
2. Does Your Credit Score Impact the Lender’s Decision?
Perhaps one of the best advantages is that credit history is not considered. This eliminates many steps taken in the application of a traditional loan.
For example, the lender no longer needs to run your credit history. This actually helps your score as credit runs have a negative effect on it.
3. What Are the Loan Terms?
This type of financing provides shorter terms than traditional loans. For example, many furniture retailers offer loan terms up to 5 or 6 years.
Many no credit loans require you to repay the loan in weeks or months. Some more flexible options offer terms of up to 24 months.
4. What Are the Advantages of No Credit Needed Financing?
Besides the fact that the credit check is waived, there are a number of other benefits. For starters, the application process is much faster than a traditional loan. An application for this type of financing is processed in roughly 20 minutes.
Another benefit is that you do not need collateral to get approved for the loan. This means that you do not have to risk the title to your car or home in order to get approval.
5. How to Find a Loan With Bad Credit?
This is not the type of loan that you get from a bank. Furthermore, while shopping for appliances or furniture, the retailer is going to sell you on its line of credit.
In the digital age, it is easy to find no credit needed loans on the internet. There are many lenders that provide no credit required loans for appliances, jewelry, and furniture.
A Recap of No Credit Required Loans
This type of loan is a great option for those with poor credit. There is no down payment or collateral required, and your application can be approved in less than 20 minutes.
If you are interested in applying for no credit needed financing, fill out an application with us today.