Finance

Loans without Credit Check: What They Are and How They Work

Usually when you are about to request a loan from any credit institution, this will carry out all the necessary checks before reaching a positive or negative answer: after having ascertained the identity of the applicant, it is certifies the reliability by checking that it is not present in the list of bad payers issued by the Credit check authority.

This control body, which appears similar to a database, receives the names of all those who have not fulfilled certain payments in the past and therefore do not represent a solid response to payment in the event of a further debt. However, there are cases in which the name of the loan applicant at this institution is not searched, and in the following article, we will explain what these cases are and in which cases positive answers can also be obtained.

This type of loan concerns permanent employees, who have already accrued a good percentage of severance, or those who have just retired and are of a satisfactory age: it is a loan that provides for its repayment by withdrawal , directly in the pay slip, of one fifth of the salary to which one is entitled. To activate this practice, you must go to the chosen financial institution and present your last two pay slips and a personal cud, and let the agency manage the bureaucratic part that will notify, in the event of a positive response, both the employer and the institution. competent providential.

At that point you will see on your monthly slip, the item concerning the agreed withdrawal which, remember, must not exceed a certain percentage of the salary, as explicit the current legislation. The control at the agency is completely useless: the installment, in this case, is directly withdrawn from the applicant’s salary , so there is no possibility that he in some way chooses not to pay it. Since this practice is made possible even when there is a large sum representing the severance pay, there are no problems even in the case of a dismissal: the severance pay will cover the remainder of the debt completely.

This type of loan is managed through pawnbrokers or financial companies that accept physical pledges as guarantees of repayment: it is enough to simply identify an object of value, such as a jewel, for example, and request the corresponding collection in cash. The agency in charge will obtain the corresponding sum, settling the return in a single solution, or in monthly installments pre-agreed with the owner.

In the event that these installments are not honored, the institution that granted the loan can quickly resell the object and return the investment made. It is a low-risk loan, because it assumes the value of a given object as a basis for credit bargaining and makes any bureaucratic practice easier. In this case, there is no need for a preventive check to the portal, because having on site the object capable of fulfilling the total compensation, no further certainty of the repayment of the sum lent is needed.

Another type of no credit check loans from slick cash in the table, concerns the changed loan : the bills of exchange are, in fact, payment obligations and if they are not adequately honored, they give the creditor the right to carry out the foreclosure practices without waiting for further grace periods. Bills of exchange are easily granted by credit institutions, precisely because of the easy mechanism for recovering the money in case of non-return.

Loans without Credit check: what to do?

There is the possibility of not being intercepted when you are registered with the agency, but the best advice is to honor, when possible, all past debts before asking for an additional sum of money on loan. The registration in the register of bad payers lasts on average 5 years and can affect the life of the nominated in an intrusive way, if he persists in his ranks.

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Published by
Tom William
Tags: Credit

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