You’re just entering the world of credit checks, taxes, and mortgages. All things you were never taught in school. Whatever the reason, it’s not uncommon for people to need a loan at one time or another, emergencies happen, unexpected trips you wouldn’t otherwise be able to attend, or even just need a new vehicle. Not to worry, even with zero credit, there are a few ways you can manage to get a loan, so let’s dive in.
Cash Now Apps
Personal loan cash apps are streamlined loan processes condensed down into a Spectrum Mobile app allowing you to apply and manage your loan entirely from your mobile device. The process is usually relatively straightforward and often doesn’t require a credit check of any kind. After downloading a cash now loan app, you’ll fill in your personal information and review offered loan options. Once you select a loan and get approved, you can then make payments through the app using your mobile login. Personal loan apps are convenient enough that most people don’t even have to get off the couch to apply as long as you have your personal financial information handy. Some cash loan apps work exclusively using your paycheck information, allowing you to get a small amount of cash loaned to you before your paycheck arrives. This can be handy in tight situations, and there are often options that give you cash quickly within as little as a few hours of your payment information being verified.
No-credit-check Loans
This type of loan is from a lender who has disclosed that they will not check your credit score during the decision-making process. This can help people qualify for a loan without bias towards individuals with excellent credit compared to those with poor or zero credit. The credit history you carry with you will illustrate how well you have handled debt in the past or whether you have any history at all. In traditional bank loans, this is the most common deciding factor when choosing whether or not someone will be approved for a loan. Be wary of no-credit-check loans though! While good in theory, they often are paired with short repayment terms, which can be challenging to keep up with in your time of need. The few weeks or months you have to pay back a few thousand dollars could lead you into a cycle of debt.
Pawn Loans
Visiting a few local pawn shops can open your eyes to another available option; the pawn loan. Pawnbrokers will take any of your valuable items as collateral on a loan. These loans typically have a higher interest rate than your average loan, but they are much less risky than traditional bank loans. If you’re in a bind, you can typically get cash at a pawnshop much quicker than waiting to be approved through other lenders, and you won’t have to undergo any credit check whatsoever. There’s also no legal requirement to repay your pawn loan, so even if you fail to make a single payment, it won’t prevent you from buying a house or suffering from severely damaged credit later on. Avoiding debt collectors and lawsuits is one of the greatest perks to pawn loans. The worst that can happen is losing the item you placed as collateral. Remember that you can always get a new one later on once you’re more financially stable without the pain caused by being sucked into a cycle of debt.
Online Lenders
Today’s online lenders operate very similarly to traditional bank loans, the main difference being that there is no in-person contact. Generally speaking, the online applications are much quicker to complete and can be reviewed in less time. There are limitations though, many online lenders stick to one or two types of loan offers and have a particular borrower in mind, so these can be more difficult to attain. The upside to their market being so targeted is that you can typically find online lenders explicitly targeting people with no credit making it easier to be approved for the loan you need without having a high credit score.
Poor credit is difficult to repair, so start out on the right foot by only taking out affordable, low-risk loans that will build your credit as you pay them back. Whatever method you choose, make sure to research the consequences of your loan thoroughly and always read the fine print!
