People with a bad credit rating or who have recently had a bad payment or a late repayment are systematically refused when they ask for a personal loan in a banking establishment.
For these borrowers, however, there is a solution: personal loan without credit check. But is this type of loan granted regardless of the client’s situation?
An alternative to conventional personal loans
A small spread is enough to be refused a personal loan in a banking institution: a late repayment, an overpayment or a slightly fair credit score are enough to prevent a borrower from obtaining a loan. Not to mention that fragile health can also compromise its achievement. However, the economic situation is difficult and no one is immune to a banking incident. Building a good credit rating is also a long and complicated thing: you must constantly pay card bills on time, use them below the limits, do not accumulate debts and always pay back on time.
A loan possible for a majority of customers
The criteria used by private lenders to grant or deny a personal loan without a credit check are different from those of traditional banks. Indeed, for private lenders:
Bad credit does not affect loan eligibility without investigation: private lenders know that bad credit can be the result of temporary trouble, excessive use of credit cards, or whatever. simply an excessive number of loan applications.
A bad payment or a late payment does not lead to a refusal: an isolated incident can happen to everyone and preventing a borrower from accessing a loan that he is able to repay can seem excessive.
Income paid by check or cash does not systematically lead to a refusal of the file. While some lenders require payment of income by direct deposit, many organizations review each case on a case-by-case basis.
A loan request from a student, CSST beneficiary, a retiree or a self-employed worker is not automatically refused by all lenders. Some of them do an in-depth study which, if it proves conclusive, leads to a loan agreement.
Moderate income does not obstruct obtaining a loan without investigation: as soon as the borrower has an income of $ 1,200 or more, he can obtain a loan the amount of which depends on his other commitments and his repayment capacity.
Limited refusal criteria for loans without investigation
Private lenders sometimes refuse loan records without investigation, but only when the borrower is clearly unable to repay the loan they wish to take out or cannot justify a healthy financial situation. This is particularly the case when the bank statements show that:
- borrower receives less than $ 1,200 per month
- he accumulates the payments without provisions
- he is already repaying one or more loans without investigation
- its repayment capacity is used in full
Obtaining a loan without inquiry is possible for the majority of people. And as the study that the lender does generally relates to the situation of the last two months, it can change very quickly and there is nothing to prevent making a new request after a few weeks. If the lender finds that there are no more bad payments or that the loans without investigation are cleared, it is very likely that this time, it will grant a loan.