You may have heard of no credit check loans, but you may wonder what loans type are actually counted in this category. It is a good idea to be aware of them and what their main features are. This means that when you are choosing a loan, you will be sure on what it will offer you and whether it will meet your needs. The no credit check loans tend to be similar in some ways, such as the fact that do not mind if you have a poor credit record, but there are other differences between them that it is good to know about so that you can be sure that you are choosing one that will work out for you.
A payday loan is probably the one that most people have heard of. The idea of the loan is that you will be able to borrow money for an emergency and repay it when you get paid. Therefore, you can borrow a lump sum of money, usually between £100 and £1,000 and you will be able to keep it until you get paid. The thought behind that is that on the day that you get paid, you will have enough money to be able to afford to repay the loan. You will have to repay everything that you borrowed in a lump sum as well as the interest and fees which means that you will have a lot to pay and you will need to make sure that you can afford that amount of money. The loans can be arranged very quickly as well, which means that they can be suitable for emergencies as well and sometimes you can even get money at weekends or overnight. However, you will need to check with each lender, to find out whether they can provide money outside of normal banking hours and if they can help you out at weekends.
Instalment loans are similar to a payday loan but you will be able to repay in several instalments. This means that you will not have to worry about getting a big lump sum to repay quickly but you will be able to spread the repayments. This will mean that you will find it easier to manage the repayments and that you will have a better chance of making them on time. As you have the loan for longer, you will be paying interest for longer, which could mean that the loan will be dearer than a payday loan. However, if you do not repay the payday loan on time, it will mean that you will have extra fees to pay and that could work out even more expensive. You will therefore need to think about whether you think you will manage the repayment or not and this will enable you to choose between the two types of loans.
A guarantor loan will offer more money than the above loans. You will usually be able to borrow between £1,000 and £10,000 and so if you need a larger sum of money these can help. You will repay monthly but you will need a guarantor. This someone that you nominate that will cover any repayments that you miss. Therefore, you will be able to borrow more money and the lender will not mind about whether they can trust you as they will be able to ask the guarantor to make payments that you cannot. This does mean that you will have to find someone that has a good credit record, that will be willing to do this for you.