What is a Credit Check?
If someone is applying for a loan, a credit check is performed by a company to check someone’s credit history to know and understand the borrower’s financial behavior. It gives a financial institution access to know about the current and past credit of the borrower as well as their payment behavior so that they can assess what kind of risk they will take when approving a loan.
While credit checks are non-negotiable for most financial institutions, there are other financial institutions that do not require this. A no credit check loan is a type of loan that does not require any credit history to be checked against a borrower. This means that even if the borrower has had a history of late payments or payment defaults in the past, he or she will still be granted a loan.
Private lenders and pawnshops are just some of the financial institutions in the Philippines that do not require credit checks. In the Philippines, pawn shops allow you to borrow money using jewelry, gadgets, appliances, and vehicles as collateral.
Financial Institutions that offer Fast Cash Loan with No Credit Check
The following are lenders and pawnshops that offer fast cash loans online with no credit checks.
Tonik Bank is a digital bank that offers retail financial products, including deposits, loans, savings accounts, payments, and cards on a highly secure digital banking platform.
Loan Amount: Php 5,000 – Php50,000
Interest rate: 84% per annum
Loan Term: 6- 24 months
Tala offers accessible online financial services with flexible repayment terms and affordable interest rates.
Loan Amount: Php2,000-Php15,000
Loan Term: up to 2 months
NCash is one of the few online pawnshops in the Philippines. It accepts items like watches, designer bags, designer shoes, jewelry, gadgets, and so on as collateral guarantees for pawn loans.
Loan Amount: appraisal value of the pawned item
Interest rate: 5% per month
Loan Term: up to 36 months
Advantages and Disadvantages of No Credit Check Loan
- They don’t require any credit history
- Fast and convenient
- Fewer documents
- High-interest rates
- Charge additional fees
- Strict loan terms
- Risk of harassment
A no credit check loan can be a convenient way to solve financial needs, especially for those who need cash instantly but have a bad credit history that will cause the rejection of the loan application. Because they are very simple to apply for with a fast approval process, going ahead with online loans that will not require a credit check is beneficial for the borrower especially to address emergencies.