There are many instances when borrowing money without a credit check can be advantageous to borrowers, and not only limited to those with bad credit. Anyone who is considering a major loan or mortgage in the next several months is advised to avoid any hard credit inquiries on their credit reports, which could potentially jeopardize their application.
There are several options available to those who need to borrow money without a credit check which are equally applicable to those wishing to keep inquiries from credit reports or those with bad credit. People who are trying to establish or re-establish their credit reputations can also benefit from avoiding too many credit checks, as can those who wish to keep their credit to debt ratio below a certain level.
Micro credit finance loans are one option to consider. Credit is advanced on the basis of trust rather than credit checks. Loan amounts are typically small and granted to those on very low incomes. Unfortunately micro finance is not universally available but is dependent upon the availability of a provider in ones area. In the UK Fair Finance operates in London, and in the US Grameen Bank operates within several states. Both institutions have excellent reputations.
Advance cash payday loans do not require a credit check and are extremely easy to obtain, either over the internet or from a pay day loan store. Despite the deluge of bad press they often receive they can be beneficial to those who require an immediate cash loan and adhere to the repayment terms. The headline interest rates are misleading as they represent the terms of an annual loan rather than the short term usage they are intended for. Comparison shopping pay day loans on the internet can provide some low fee offers.
The oldest method of borrowing money is undergoing an upsurge in popularity. Pawn shops offer an easy option for borrowing money without a credit check. The goods which are pawned in exchange for cash can be redeemed when the loan and fees are repaid, or sold on by the pawn shop if the loan goes unpaid.
Employers may be willing to provide an advance on wages, or funds could be borrowed from family or friends. Generally no interest or fees are attached to such loans, but can prove to be detrimental to relationships and raise embarrassment on both sides.
The option to avoid is borrowing from loan sharks. They won’t run a credit check but they may well resort to unscrupulous methods to recover their money, applying exorbitant daily interest rate rises or breaking borrowers knees. Borrowing from illegal loan sharks does mean that there is no legal obligation to repay the debt as the loans themselves are illegal, but trying to press the point could prove dangerous.
It is recommended to use one of the other legal methods and borrow from a licensed money lender rather than stray into the trap of illegal lenders. There are legitimate ways to borrow without needing to undergo a credit check.