Is a Credit Check Needed for Personal Loans?

February 4, 2019

When you need to get a personal loan, you might feel held back by your current level of credit. You will want to know if you need to get a credit check in order to get a personal loan.

What is a Personal Loan?

A personal loan is emergency funding that you can obtain through a bank, a private lender, online lenders, a credit union, etc., that you pay back in a predetermined set of fixed monthly payments. Typically, these payment terms will range between two to five years.

Many kinds of personal loans are unsecured, meaning they do not require you to provide your lender with any form of collateral. But there are also several payday loans that are not unsecured and do require you to offer your lender some kind of valuable asset (usually your house or car).

Do I Need a Credit Check to Get a Personal Loan?

It really depends on what kind of a loan you are trying to get. Many personal loan lenders (depending on what kind you are going for) will still do a credit check on you, even if they will not be using your credit score or history to decide whether or not they will grant you approval.

A credit check will not necessarily prevent you from getting a personal loan as long as you go to the right kind of lender. You might not get the interest rate if you don’t have great credit, but you may still be able to get a personal loan.

What Kinds of Personal Loans Are There?

If you have found yourself in a situation where you need to get a bit of extra funding, there are a wide plethora of various personal loan options for you to pick from, depending on what best suits your current financial needs and circumstances. A few of the most common of these kinds of personal loan options include (but are not limited to):

Unsecured Loan

Unsecured loans do not require you to offer your lender any form of collateral before you are approved to take out the loan. These loans are usually for small amounts ($500 or less in most cases), but several, like payday loans, can be taken out in a hurry. Fast service is what makes this loan option great if you are facing a financial emergency and you need extra money as soon as possible. In most instances, you do not need to have a good credit score in order to qualify for an unsecured loan.

Secured Loan

Secured loans are a type of loan where you are required to put up some kind of collateral before being approved. Borrowers could use their car (car title), house, or potentially some other valuable asset. This is done so that your lender has a way to recuperate their losses should financial troubles arise and you default on the loan.

Secured loans can be useful for a variety of reasons. With that being said, sometimes secured loans are used for financial crises such as medical bills, getting your car fixed, funding an immediately needed home repair, etc.

Line of Credit

A line of credit is a type of loan where your bank allows you to withdraw some extra money (up to a certain extent) from your checking or savings account. If you are presently in a situation where you need more money than you currently have, a line of credit comes in handy. What makes these kinds of loans appealing is that you only need to pay interest on the amount of money that you spend, rather than what you borrow.

Overdraft Loan

An overdraft loan is almost exactly what its name would imply. This is a loan where the purpose is to make certain that you have enough funding to cover whatever you need in an emergency without being hit with overdraft charges. One of the more popular parts of overdraft loans is that like lines of credit, you only are required to pay interest on the money that you spend instead of what you borrow.

Fixed Rate Loan

A fixed rate loan is a kind of personal loan that comes with an interest rate that is solidly fixed for the entire life of your loan—no matter what. This can be very beneficial for someone who is working for salary payment. They can make the exact same payments each month without worrying about the payment amount changing and coming up short of funds.

Variable Loan

Variable loans are pretty much the exact opposite of fixed rate loans. These are a kind of loan where your monthly interest rate can fluctuate to any degree at any given time. Your lender is allowed to change their prices at their discretion. That said, even though the prices can go up, they also can come back down as well.

DISCLAIMER:
The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.

1Loan amounts by the lenders vary based on qualifications.

2Since we do not lend money directly we cannot offer you a solicitation for a loan. In all serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans are not available in all states and all areas.

3Loans such as, Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan. Other types of loans may have pre-payment penalties as well.

4All lenders are responsible for their own interest rates and payment terms. Max Cash has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

5The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time, in the circumstance for an auto title loan. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically, larger loans or higher risk loans use a GPS.

In some circumstances faxing may be required. Use of your cell phone to receive updates is optional. Please review our privacy policy.

Loans such as Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long-term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

Signature and personal loans are only available in Georgia and Florida. Loan amounts differ at locations. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.

Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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