For many people in today's economy a credit check is a killer. Negative credit reports of missed payments caused by unemployment, sudden medical bills, increases in housing, utility bills and gasoline costs are just as devastating to a person's credit report as deliberately skipping out on payments or having an eviction or bankruptcy.
Don't despair if you find yourself in the position of not being able to get a loan or finance a purchase because of a poor credit report score. There are numerous "no credit check" financing programs that can help you.
The most common are payday loans, which are available from online financial services and also, in most communities, from storefront loan brokers. The advantage of a payday loan is that getting one only requires that you be employed and have a social security number. Also, payday loans are usually available almost immediately ... sometimes the same day you apply. The disadvantages are that amounts loaned are generally limited to under a thousand dollars, repayment usually has to be made within a month or six weeks, and interest rates are high. There is a quite a bit of difference in these rates, however, so thoroughly comparing payday loan offers is important.
Another form of no credit check financing involves securing the amount of the loan with the clear title of a car, boat, or other form of real property. This sort of financing not only doesn't require a credit check, many lenders don't even care if you're unemployed. Unlike pawning an item, obtaining a title loan enables you to keep driving your car during the loan period. All the lender retains is the title.
When considering a title loan, shop carefully. Some lenders require you to repay the total balance quickly; others let you make payments over many months. There are also substantial variations between what different companies will loan on the same vehicle. Each finance company has a different way of disposing of cars which are not reclaimed and the maximum they will loan is based on how much they think the car will be worth to them when the unpaid loan goes into default.
Finally, compare interest rates on title loans diligently. Though higher than interest rates for people with good credit, title loan interest rates should be considerably lower than unsecured bad credit loans such as payday loans because they are secured with real and tangible property.