Lenders provide access to all sorts of loans depending on your credit status. There are many types of loans available to consumers such as no credit check loans, bad credit loans or good credit loans. The question remains: What is the difference? Here is some information that may help you to understand these types of loans:
What are Good Credit Loans?
Good credit loans are the typical loans that anyone with a good credit history can apply for from a lending institution like a bank. These loans typically involve a lot of paperwork to determine your eligibility, but often have lower interest rates. Here are some of their features:
- With a good credit score, you can get any type of loan, unsecured or secured, depending on your needs.
- The interest rates are the lowest due to your credit history that acts as a guarantee of your ability to repay your loan on time.
- Access to unsecured credit loans is also guaranteed and you should have no trouble acquiring an unsecured personal loan from any credit facility.
- Good credit loans are designed as long term financing solutions.
What About Bad Credit Loans?
Bad credit loans are made for borrowers who are struggling with financial hardships and a less-than-perfect credit history. Here are the features of bad credit loans:
- They are especially designed to meet the financing needs of those who don’t have the benefit of a good credit score.
- Bad credit loans are generally short term loans that are repaid quickly.
- They have higher interest rates than good credit loans. Depending on the lender, you can also get affordable bad credit loans.
- Bad credit loans usually entail a more relaxed procedure with fewer documents and shorter approval times.
- Secured loans for bad credit require collateral while unsecured loans require a sufficiently stable income.
- Bad credit loans need to be repaid on time or they will trigger serious losses.
What You Should Know About No Credit Check Loans
No credit check loans provide quick financial assistance to people with bad credit and they don’t entail any credit checks, as the name properly suggests. Here are the features that define no credit check loans:
- No credit checks loans offer the possibility of borrowing smaller amounts of money, in some cases up to $10,000.
- They are a quick solution but they also need to be repaid in a reasonable amount of time, which can be from one to three years.
- No credit check loans often have higher interest rates.
- Although no credit check loans are issued without any credit confirmation, you still have to provide some form of collateral, such as a car in a car title loan.
- Collateral for no credit check loans may be your salary, your car or your home.
Now that you understand the pros and cons of each type of credit loan, you can make an informed decision based on your specific situation. Fast Access Finance specializes in bad credit loans and no credit check loans. Take a look at the types of loans we offer to determine which is best for you.