The good news is that you can receive a loan without having to go through a credit check. It’s not easy to secure a loan without a credit check, but there are a few options. Make sure you do your homework and obtain the greatest deal possible. We look at mixed credit loans, for those with an imperfect history.
First Steps
The first step is to determine whether your sole choice is to apply for a loan that does not require a credit check. Higher interest rates and stricter restrictions are common drawbacks of these types of loans. They aren’t usually recommended for people who might be able to get a more traditional loan.
Checking your own credit won’t affect your score, and it will give you a better sense of the kind of personal loans you might be eligible for.
Mixed Credit Loans – Know Your Situation
Most persons with little or no credit history have a “thin credit file,” which means they have only a few, if any, accounts in their past. People with thin credit files typically have difficulty obtaining fresh credit because lenders find it difficult to assess their risk due to their lack of history.
Whether you have a spotty credit history or simply awful credit, you should know what’s on your credit report before applying for a personal loan so you know where you stand when speaking with lenders. You might also check your credit and discover that you have a credit score that qualifies you to apply for a loan with better interest rates and terms, saving you money in the long run.
Working Out Your Rating
When assessing you for a new loan, most lenders look at your FICO score, which runs from 300 to 850. Scores below 669 are classified as “fair” or “poor,” while scores above 700 are classified as “good” or “outstanding,” depending on where they fall. If your FICO score isn’t in the good to exceptional area, it would be a good idea to look for a personal loan lender that doesn’t demand a check.
Mixed Credit Loans – Preparation
When applying for a personal loan without a credit check, be prepared to demonstrate your creditworthiness to the lender. Furthermore, possessing the paperwork and records necessary to demonstrate that you are financially secure and capable of repaying new debt can improve your chances of approval. When speaking with lenders, you should have the following documents:
