A coin has two sides. In fact, each and every aspect in his world has got two sides. If we are talking about getting financed, the loans have got both advantages and disadvantages. Generally, the personal loans are the most expensive financial solutions available in the market. And if these gets to be no credit check loans, that can be worse indeed! Still, the bad credit personal loans are not all about having disadvantages. These have got some positive impacts as well. Here you get to know the advantages and disadvantages of the bad credit personal financial aids.
We are all concerned about the adverse impacts of the bad credit personal loans. But, we always miss the good parts of it. So, here you get to know the advantages:
- Quick approval:
The fiancé companies or the banks who lend bad credit personal loans generally lend money quickly. In fact, the loans with no credit check require a lot of equipments like proper documentation, assurance or collateral. All these assure or secure the lenders more that the credit rating!
So, after all these task are done, the loans get sanctioned quickly. A research has been made in this regard on 2011 and that showed that the bad credit personal loans have a 90% of approval rate in the market! Well, the number is too amazing and definitely more that the credit check loans.
- Large loan amounts:
The bad credit loans generally get a lot more assurance than that of the loans given with credit rating. Some lenders take collateral as well. In that case, the loan balance becomes higher. The collateral possesses the equal value of the loan balance. So, it seems like that loan balance can be higher. it is the best part of no credit check loan that it can lend a larger amount to a borrower.
Generally, people care about the disadvantages of the no credit check loans as these are kind of huge. Here you get to know the disadvantages:
- High cost debts:
The debt repayments are too expensive with the no credit check loans. The credits actually assure the lenders that this particular borrower is capable of repaying the debts. But, if there is no credit checking procedure, the lenders ask a lot of interest rate and fees with the loan. As a borrower, you must have to afford it. The bad credit debts are enough for a financial damage. A person has to be too smart in managing this debt.
- Unsecured source:
We can hardly find a lender who is ready to lend money to the people having poor credit. This problem is too acute in times of having a personal loan. So, if the few lenders are even found, a borrower has to take a huge risk. The lender can not be a secured one. The total money lending and borrowing procedure is unsecured for the borrower and he/she has to deal with it.