Loans Without Credit Checks
There are many loans that you can get without a credit check. You can get payday loans, title loans, and pawnshop loans to begin with. The most common loan that you can get without a credit check is the personal loan.
A personal loan is one that you can use for almost any reason. You can’t use it for college tuition or illegal items, but you can use it for anything else. You can get many of them without having a credit check, as well.
There are many places you can get one of these, as well. You can go to website to see what they have available for you. They have been helping people for many years.
This article will help you some of the terms that you need to know about these. These terms can help you to learn more about personal loans. You can also do more research to find the information that you need.
Common Terms You Should Know
- Annual Percentage Rate or APR – This is the cost that it takes for you to take out a personal loan. This bundles all the fees and interest rates that you must pay. This puts all those numbers into one number which is the APR.
If there are no fees, then the APR and simple interest rate will be the same number. When you are comparing loans, you should compare APR to APR to get a fair comparison. These numbers are the complete number for your loan.
2. Borrower or Applicant – The borrower and the applicant are the same thing – they are just called different things to different people. This is the person that is applying for the advance. This is the person that will be responsible for paying the money back.
A borrower is the person that the lender will speak to about all the aspects of the advance. The lender will ask them to sign all the paperwork that goes along with the advance. In other words, this person is you if you are trying to get the advance.
3. Co-Signer – A co-signer is a person that agrees to sign the advance with you and will take on the responsibility of paying for it when or if you fail to make the payments. This person signs the contract with you. They will agree to all the terms that you agree to.
The co-signer is usually someone that you know well. They should have a better credit score than you do. This is so you will be more likely to get the advance.
4. Credit Score – A credit score is a three–digit number that represents your total credit history. Lenders see this score and will use it to determine if you qualify for your advance. It helps to determine your creditworthiness, or risk, as a borrower.
You want to have a high credit score because this tells the lender that you will be a good risk. A high credit score shows that you have been paying your bills on time and that you have paid them in full. If you have a lower credit score, you are showing that you aren’t paying your bills on time.
5. Consolidation of Debt – Consolidation of debt, or debt consolidation, is the act of collecting all your debts and paying them off with one loan. This is usually done with a personal loan, sometimes called a debt consolidation loan. The debts that are usually collected together are credit card debts.
When you bundle all your credit cards into one loan, you save money and interest on multiple debts. They usually offer lower APRs for you, as well, which allows you to save more money. Many people opt for these so that they can manage their debts better.
6. Variable or Fixed Interest – Variable interest is interest rates that change throughout the lifetime of the loan. They usually go up and down according to the national interest rate. They are not common for personal loans.
A fixed interest rate is one that doesn’t change throughout the lifetime of the loan. It stays the same throughout. This helps you to budget your payments because they don’t change. These are the most common for personal advances.
7. Hard and Soft Inquiries – These are used to check your credit history to see if you are worthy of getting the advance. A soft inquiry will just be to check your credit score and allow you to pre-qualify for a loan. This will not harm your credit score in the long run.
A hard inquiry is one that goes further into your credit report to get all the information that the lender needs about your debt habits. This happens when you formally apply for the loan that you need. They will be on your credit report for two years and will cause a dip in your score for a few months.
8. Interest – This is what the lender charges you for borrowing the money. This is usually expressed as a percentage rate. This, along with your loan fees, go into making your APR.
You will continue to accrue interest each month of your advance. Your monthly payments will pay interest first and then your principal. This is one reason that you want to pay more than the minimum payment each month – more will go towards your principal.
9. Amortization – This is the process of paying your loan down each month. Learn more about that here. The amortization schedule will show your payments each month. It also shows the length of time that you will be making the payments.
This schedule can help you to budget your payments each month so that you will be able to make your payments on time. This will also help you to pay your bill in full so that you will have a good credit report. You will have a better credit score because of this.
10. Origination Fees – This is a fee that happens at the beginning of your advance. It is charged to you by the lender to cover administrative fees. These are usually a percentage of your advance, usually from one percent to eight percent.
For example, if you have a fifteen-thousand-dollar loan, with a five percent origination fee, you will subtract seven hundred fifty dollars from your money. This would mean that you would deposit fourteen thousand two hundred fifty dollars into your account. This fee can also be paid upfront by you so that you get the full amount in your account.
11. Pre-Payment Penalty – This is a fee that you will be charged if you pay off your loan early. This is to help the lender get back some of the money that they lost due to interest loss. Not all lenders will charge this, so you can shop around for a lender that doesn’t charge it.
Conclusion
There are many terms that you should know before you apply for an advance. These will help you as you read the agreement that you need to sign. It will also help you when the lender is speaking to you about it. You can learn more about these terms if you want to do more research.
