Originally posted on https://bonsaifinance.com/finding-the-best-loans-no-credit-near-me/

Maybe you just turned 18 and have not built any credit, or possibly your credit has been damaged by unfortunate circumstances. Either way, the result is the same. Searching for “loans no credit near me” can be difficult, but fret not, there are options available.

Avoid No Credit Check Loans

While they may seem tempting, it is generally best to avoid no credit check loans. Instead, focus on finding loans aimed at people with poor or no credit. Any credit score is better than nothing when it comes to determining your interest rate.

Most no credit check loans automatically assume that you have terrible credit and can not qualify for a better rate. Lenders use this to charge much higher interest rates. These loans look attractive because all you usually need to get approved is proof of income, but the interest on no credit check loans can be over 100% APR.

Determine Your Needs

The type of loan that you take often depends on your needs with the loan. Do you need an extra $300 for car repairs, but plan to pay it back next check? A title loan maybe your best option. Do you need $5,000 for home repairs? You want to consider a personal loan or borrowing from your home equity.

Remember, there are several different types of loans, and each one is designed for something different. That is why it is essential that you assess your needs with the loan before you even begin your search for “loans no credit near me.”

Read The Terms of Service!

While most lenders follow the law and provide a necessary service, there is always a small group that aims to take advantage of their customers. This usually means trapping them in unsustainable loans. This can take many forms such as compounding interest monthly, rather than yearly on a long term loan. If you are paying a 10% interest rate, that sounds good, but not if the lender failed to mention that it is charged monthly, not annually.

It is especially important to be vigilant with online lenders. Many states have enacted borrower protection laws that limit the ability of unscrupulous lenders to take advantage of customers. Online lenders, however, are only restricted by the laws of the state they are registered in for tax purposes. Utah, for example, is a particularly popular destination for online lenders due to lenient laws on loans with no credit.

Shop Around

Don’t take the first offer you get. Most likely you can find a better deal by shopping around a bit more. You may end up finding a loan with half the interest rate of the original.

Be careful not to overdo it though. When a lender runs your credit report, it does show up as a hard inquiry on your report. Too many hard inquiries can negatively affect your score.

To clarify, when you check your score, it is not reported as a hard inquiry, so it never harms your credit score. Services like Bonsai Finance’s personal loan finder tool can provide you with a list of lenders who will likely allow you to qualify.

Check With Your Local Credit Union For Loans With No Credit

Not everyone has a credit union available to them, but most people do. Credit unions are not run like banks. Their function is not to generate the most profit, but to serve their members and pay their employees. This means they are more amiable when it comes to bad credit than banks and offer lower interest than dedicated bad credit lenders.

Conclusion

Finding loans for bad credit can be difficult and time-consuming, but don’t let it make you sloppy. Always read the terms and conditions thoroughly to make sure you are not being scammed, especially with online lenders with fewer restrictions. One of the best local options to consider is your local credit union.