The economic recession has led to the development of several loan facilities that are available for 'bad credit'. In accordance with FICO credit score rating scale, that is predominantly used in the United States, people who have a rating below 580, have a poor score or a bad credit. The drawback of having such a score is that the lenders put forth a straight forward denial for approval, or charge a mammoth interest rate, that is calculated in accordance with the score. Either ways, both scenarios are not at all attractive. Private lenders, a handful of public lenders, and banks have come up with the idea of bad credit loans.

No Credit Check Installment Loans

No credit check installment loans, is an umbrella term for several different loans, which are provided without a credit report analysis, and are to be repaid in a set of installments, the amount of each being equivalent to another. In financial terms, it mean that the loan is repaid in fixed installments.

Suppose that you have taken a loan of USD 50,000 with an interest rate of 5% per annum, for 5 years. Here the USD 50,000 becomes your principal amount and 5% is the rate of interest. You will have to repay installments of USD 10,000 plus an interest of USD 2500 every year to the lender. The installment of USD 12,500 (USD 10,000 + USD 2,500), does not change at all, throughout the repayment period. The beauty of this is that you tend to owe a specified amount per month or per year. The fixed installment makes it easier for you to calculate your debts and at the same time, repay them on time.

The term 'no credit check' implies that the lender is not going to make a credit check and is going to sanction the loan irrespective of the credit history. While calculating the rate of interest and repayment installments, the credit score is also not taken into consideration. This is actually a merit, due to the fact that the rate does not depend upon your score, and you end up saving a lot of money.


The nature and features of the installment cash loans offered without a credit check, depend upon the lender's policies. The loan will be a secured loan in most of the cases, as the lenders would not prefer to put at stake such high amounts. However, it can be an unsecured loan, if it is a short term loan, as the principal amount is small and the lender has lesser money at risk. The loan can also be applied for specific purposes, such as purchase of real estate or home, which would make it a mortgage or a home loan. It can also be taken to purchase a car, which would make it an auto loan. Apart from these variants, one can also have the loan as a personal loan which can be used for many different purposes.

Though the name implies that the lenders would not consider the credit report, this is not the case, as lenders are bound to go through your credit report, salary proof, current account statement, and identity proofs. In short, a lender is bound to go through all your financial information, in order to ascertain whether a borrower will be able to repay the loan or not. There are some minor requisites that have to fulfilled, such as having an appropriate collateral, income, and finally a current or savings account. It must be noted that overdue and late payments are fined by lenders.