Categories
No Credit Check Loans

Are no Credit Check Loans the Big Thing of the Future?

There are lots of loans available to us now. It used to be that we just had the more traditional ones such as personal loan, mortgages and credit cards, but there are not more types available particularly in the form of no credit check loans. You may wonder whether this might be a sign of what is to come in the future. It is worth knowing what they are and why they may or may not be a thing of the future.

What are no credit check loans?

A no credit check loan is rather poorly named as all lenders do credit checks. However, they look for different things. Traditional lenders will look at your credit report to see how reliable they think you will be at repaying the loan. They will see whether you have successfully repaid loans that you have had before and how good you are at making regular repayments for things like utility bills and rent. However, a no credit check lender will not be looking for the same things. They will not be concerned by your borrowing history but will be looking to just make sure that you have money coming in regularly and they will want evidence of this so that they can be sure that you will be able to repay.

Could they be a thing of the future?

It could be thought that this type of loan will get even more popular in the future. They are already expanding with regards to the amount of people using them and the different types that are available. This could indicate a pattern of expansion which could continue.

Of course, there will also need to be a demand for this sort of loan too. It is possible that as the UK leaves the EU that some people might be worse off and more likely to need to borrow. IT might also lead to people struggling financially if process go up and therefore, they may need to borrow more money. With an increase in borrowing it is likely that there will be an increase in no credit check loans as well as more traditional ones.

As the loans grow, more people will become aware of them and this could mean that they will be more likely to use them. Spreading by word of mouth as well as lenders being able to afford advertising as they grow should help them to expand.

It may also be felt that there are gaps in the market that need filling in this sector. If more loan types are introduced then it will mean that the loans will appeal to more people and that will mean that there will be borrowers of this sort of loan.

Environmental concerns could also lead to a need for more money. People may have to swap their vehicles or buy other energy saving products which could be expensive and they may need to borrow money in order to do this.

The population is also growing and this will mean that there will be more people and that could mean that they will need more borrowing.

Why they may not be

Of course, it could be the case that borrowing might lessen. It could be that people get worries about the UK leaving the EU and decide to reduce their spending as a result and they may have less need to borrow. People may just be more careful with their money.

Environmental concerns could lead to people wanting to buy less things in order to pollute less and therefore they may spend less money and have less need for borrowing.

There is more financial education in schools which can help people to be better at budgeting. Although, they are not taught to avoid all borrowing, they will be taught the difference between good and bad loans. They might therefore decide to borrow less and they may also budget better. This could lead to a reduction in the demand for this type of loan.

It is also very unlikely that the demand for traditional loans will fall massively. The high street lenders seem to have a good advertising budget and so they are likely to keep getting customers. Although some branches are closing and a few banks have closed completely, this is unlikely to be a trend that will spread over the whole banking sector as people will always want to have current accounts as well as save and borrow.

So, it is not that hard to tell whether no credit check loans will be a big thing of the future. It is likely that our demands will change and whether this impacts lending is not easy to predict. It is likely that there will still always be a choice of loans but what those are is not easy to predict.

Categories
Instalment Loans

Are all Instalment Loans Easy to Repay?

There are many different types of loan and some are easier to repay than others. Instalment loans are known as being fairly easy to repay compared to some other similar types of loans. It is worth thinking about this before you decide whether to get one as we all have a different idea of what might make a loan easy to repay.

Pay in instalments

There are some loans which have to be repaid in a lump sum and compared to these an instalment loan should be easier to repay. This is because the loan is repaid over a series of months or possibly even years and so you spread the cost over a longer time. It is easier to find the money required as you will be taking it out of your pay over a long period of time rather than having to find the money all at once. Most people would prefer this. The reason some people do opt for a one-off payment is because they want the loan to be cleared quickly. This can be good and can mean that it will be cheaper as the loan will not be outstanding for so long. However, if you miss the repayment or cannot afford all of it because it is so large then you will end up paying a fee and this will make the loan a lot more expensive and probably more expensive than the instalment loan, depending on how long you owe the money for.

Size of instalments

If the instalments are relatively small, then they will be easier to repay than if they are larger. The size of the instalments will depend on the lender that you choose and the amount that you borrow. This means that it is really important to start by working out how much you can afford and then looking at your different options in order to find one that will suit you really well. You should find that there is such a good variety of lenders that you will be able to find one that will offer what you need. If there is not then you could try contacting some and asking if they will be able to allow you to repay smaller amounts for longer. They may agree and it is well worth asking as the worst that can happen is that they say they cannot help you.

Number of instalments

The amount of repayments that you make will depend on how much you borrow and how much you repay each month. If you have more instalments, then the amount you repay each time will be less and it will be easier for you to manage the repayments. It will also be more expensive as you will owe the money for longer but it could be worth this extra cost if it means that repayment is easier for you.

Your financial situation now

You will need to take a look at your financial situation in order to figure out what you can afford to repay right now. Take a look at your bank statements and note how much money you have coming in and how much you have to pay out. You will then be able to calculate the difference and work out how much you can afford to repay. It is well worth doing this because you want to be sure that you will be able to manage the repayments that you will need to make.

Future finances

If your repayments go over a long period of time then it is worth trying to work out whether you will also be able to afford them in the future. If you have a permanent job which you feel is secure then you might feel confident that you will be able to make the repayments. However, also think about whether there might be expenses that you might need to pay out for. Perhaps you need to replace a vehicle soon, pay a deposit or something like that which will take a chunk of money. Have a think and decide whether you will be able to cope with this or not.

So, although instalment loans should be fairly easy to repay you should just not assume that they will be. If you work out how much they will cost and what you can afford you should be able to decide whether you can take out the loan or whether you need to look for a cheaper one. It is important to go into a loan with confidence that you will be able to pay it off. You should eb able to find an instalment loan to help you but you need to make sure that you check before signing up to one. It should not take that long and will be worth it.