There is on the credit market today a type of personal loan known “no credit check” loan. However this type of loan only has a maturity date of 15 to 30 days. This is easily accessible to people who are in immediate need of cash. The interest rates for this can go as high as four times the regular rate. There are three types of loan usually referred to “no credit check” loans and these are payday loan, Title loan and Personal installment loan. Payday loan normally requires the borrower to write a post dated check for the amount of the loan. The check amount contains the principle amount plus the fee (which is actually the interest). The maturity date is usually no longer than 30 days else the borrower will need to extend by filing for another payday loan. The repayment term is for the borrower to redeem the post dated check with cash or to allow the lender to just cash in the check or deposit it. Title loan on the other hand is a loan where the borrower need to put his car or any other titled assets as collateral. Title loans allow borrower to apply for a higher loan amount but should not be at par or more than the value of the collateral. Maturity date for this loan is also 30 days. If payment is not made within the said date there’s a good chance the borrower will lose the collateral he had placed on the loan. Personal online installment loan is a little more manageable because it allows you to pay the debt on a weekly or monthly basis. Your monthly amortization can be for the interest only and make a balloon payment at the end of the loan term.
Is this a Worthwhile Loan?
For those who are in dire need of cash, this may be his only recourse. There is only one advantage for this type of loan and that is you can easily get one at a moment’s notice. However, you should take into consideration the very high interest rate that you have to pay and the very limited time that you have to pay off the loan.