With some loans we are restricted in what we can use them for. Sometimes we have to use them for a certain purpose which as a student loan for university fees or a mortgage to buy a house. However, there are some loans which are more general and it is not declared what we should use it for. This includes things like a credit card which you can use to buy anything. However, despite this, there are some restrictions on certain loans just due to the nature of the loan. This is the case with a no credit check loan. This is because the lender does not specify how it should be spent. However, as it does not last long, it is not for very much and it is quick to arrange, this can influence what it is used for.
- Does not last long – the fact that the loan does not last long can be an advantage. It has to be repaid in full at the next payday. This means that you can only borrow an amount of money that you will be able to repay in full. This can be restrictive as if you borrow too much you will struggle with the repayment. You may therefore be restricted in how much you choose to borrow. However, it does have advantages in that you will not be in debt for long which many people will really like.
- Not for much– the loans tend to only be for up to £1000. This will depend on the lender but as you can only borrow smaller amounts of money it means that you will not be able to buy a massive amount of things with it. Luckily, you will not be tempted to borrow a lot more than you can afford to repay but it does mean that you will not be able to spend lots as well. It should be enough money to pay for emergencies though such as unexpected bills, repairs or food. You might even be able to use it for a cheap car or holiday but it is important to make sure that if you borrow a larger amount you will be able to repay it.
- Quick to arrange – the fact that the loans are quick to arrange means that they are perfect for paying for emergencies. As long as you complete the application form properly and get all of the paperwork they need for them, you might have the money within a few hours. Some lenders might even work outside of normal banking hours so you can get it this quickly in the night or at weekends. This means that the loans are really best used for emergencies as the money is available quickly but you do not have to use them for this purpose.
By looking at these factors we can see that the loans are perfect in certain situations. If you need money really quickly they can be handy and if you have a poor credit record as they do not judge you on your credit score. The loans are also good if you do not like being in debt for long. They are great if you do not need to borrow that much money too. However, there will be more appropriate loans if you need to borrow large sums of money for a long period of time and do not mind waiting for it to be arranged and have a good credit record.
This means that although there is nothing stopping you form using a no credit check loan for anything at all, you might be limited by the nature of the loan. However, it is wise to know about the loans and the things that they are good for. This because you will then be able to make sure that you use the guaranteed loan when it is most appropriate. You may find in some situations it will be perfect but there will be other situations where it will not be so good.
Like all loans, you will find that there are lots of different lenders offering similar deals. It is worth comparing them though as you will find that there will be some that meet your needs better than others. It can be tempting to just compare them on interest rates and choose the loan with the lowest interest rate. However, you will find that this may not be the best loan for you. You need to think about what exactly you need out of a loan and a lender and match t up. This will take a bit of time and effort but it will be worth it. You will find that if you can find a good lender that will match up with what you want at a good price, then you will have a much more positive borrowing experience.