Applying For Personal Loans With No Credit: What Should You Know?

Applying For Personal Loans With No Credit: What Should You Know

A credit score is the first thing observed while taking a loan. It tells how much and for how long you can get a loan. But what if you have no credit history at all, or you are taking a loan for the first time or your credit history is not good, and you don’t want a loan based on this? The answers to all these questions are pretty obvious- “Loan with No Credit check”.

You must be wondering if the credit score is the first thing observed while taking a loan and how to get one without any credit check at all? Well, everything has alternatives, and “Personal Loan with No Credit” is one such option curated exclusively for people with no or bad credit history.

Features and Benefits of a No Credit Check Loan

  • Approved regardless of credit history or credit score.
  • Usually, the rate of interest and charges are fixed.
  • Flexible tenure of the loan and payback options.
  • Instant approval of credit.

Disadvantages of a No Credit Check Loan

  • The terms of the loan are decided by the lender, not everything favors the borrower.
  • Higher interest rates and charges are applied, making it costly. 
  • Short-term loans are provided making the EMIs higher.

How to Get a Personal Loan with No Credit Check?

  • Apply for a low-value loan: Since the credit history is not backing your loan, the lender finds it risky to approve a larger loan. To seek approval on a no-credit-check personal loan evaluate the amount you need and assess how much you can afford and then apply for just the needed sum. It convinces the lender for approval.
  • Prove your credibility: If not the credit history, regular and decent income is your saviour to have the approval on your no-credit-check personal loan. FlexSalary also gives the credit line just based on salary slip and bank statement while not considering the credit score.
  • Get NA or NH on the Credit report: NA stands for “Not-applicable” and NH for “No History”. This helps in telling the lender that you are new to credit and that chances of approval improve your no-credit check loan.

Top 3 No Credit Check Loans

  • Secured Loans: In secured loans, you need to keep a mortgage whether a motor vehicle, a house, property papers, saving certificates or shares bought; against the loan. The credibility which is not assessed in absence of the credit score is secured with collateral in a secured loan.
  • Credit Card Loan: If you own a credit card, a no-credit-check loan is just a few clicks away from you. You can get money up to and beyond your approved credit limit. A credit card loan is easy to apply for and is approved instantly but attracts a higher rate of interest and charges. 
  • Line of Credit: A line of credit can be the best of all the alternatives to no-credit-check loans. In this, you get approval on a credit limit on which the interest is applied only when you spend the money. No interest is charged on the lump sum amount, unlike any other loan. 

From the above, apply for a personal loan with no credit history from FlexSalary, because of the short application process, minimal documentation, and instant approval followed by quick disbursal of the credit. At FlexSalary, based on your salary slip and bank statement, you can get a loan of up to Rs.2,00,000 to meet your needs.