NCCL Cat. 12 Mo. Lenders Not Using Credit Checking in NY, FL, OH

Where Borrowers Find Loan Approvals

NCCL Cat. 12 Mo. Lenders Not Using Credit Checking in NY, FL, OH

For today’s work we are going to delve into three different areas in the United States where borrowers were using loan sharks to get approved for loans without credit checks. Finding lenders who will approve a loan, and at the same time not check your credit rating, is extremely rare, and this is why the effective APR (effective interest rate) can get fairly wild.

All of these lenders would be classified as loan sharks in our opinion, and it’s not our recommendation that you deal with these kinds of lenders. However, the reason we are publishing this information is because loan sharks are always going to be prevalent in western society, and its always going to be the case that they exist.

So many people have really bad credit scores and they have no way out of their financial misfortune but to employ these sharks. One thing for sure, you want to make certain that you pay off any lender on time and as quick as possible.

All three of the lenders discussed here today were at one time in our list of approved lenders, but came with warnings regarding the APR levels they were using with their loan products, and whether or not they were legal was still being vetted weeks after they were using our services. As it turned out, the first lender in our example from New York City was removed from our list and database as a viable lender that doesn’t check borrowers’ credit scores during their approval process.

Why Would These Lenders NOT Check Credit Scores!

They simply charge such a high interest rate that they can withstand customers who default on their payments (sometimes losing their money without even doing a charge-off).

Even though we have removed many lenders from our system for charging APR levels that were predatory to the point of disgusting(legalities regarding State law and usury limits in question, etc.) we still have at least 23 to 25 of these lenders in the system who don’t check credit ratings the same way as traditional banks do, and don’t even use the three credit checking agencies such as TransUnion, Equifax, Experian – some don’t even use FICO as a barometer when approving short-term loans between $1000 and $5000! There are about three or four lenders who have lent out much more than that – upwards of $20,000 in the odd case.

Our first loan came to us from New York City, where the applicant was approved for an $8000 loan with an effective APR of 41%, while the second loan is from a lender in Cleveland Ohio using a base effective APR of 33%, on a $21,000 loan. The third and final loan (as you can see below) is in Jacksonville Florida for an amount of $16000 with a 24% interest rate. We have pointed out our caution level as per the FUSA lender rating.

You will noticed that with all of these loans they were approved based on a 12 month term, meaning that the debtors pay back the loan with 12 installment payments for a year. You can see why some lenders will go ahead and approve loans without doing a credit check here because they are making so much money on the interest.

Furthermore, try to imagine how much the effective APR would be on these loans if the debtors defaulted on payments and were late. The penalties and charges would accumulate, so much so that the borrowers would be in a really bad situation. This is why we have to vet all lenders and remove some that behave in a predatory manner.

Of course, our biggest concern is that the lenders are doing business legally, and that means legally on a Federal basis and on a State basis.

Lender in NYC Not Doing Credit Checks

Marla’s No Credit Check $8K Loan in NYC for 12 Month Term

On the Upper West Side in New York City we had a borrower who had a severely damaged credit rating and needed a loan in a hurry. They were having no kind of luck getting approved with their bank. This applicant’s main bank branch is the PNC Bank in New York City at the corner of E. 43rd St. and Madison Avenue (if you are familiar with NYC, this is right beside Berkeley College).

This applicant was looking for a loan of $8000 to be paid back with monthly installments for 12 payments in total, and they were quite willing to pay the high interest rates that this lender was demanding.

You can see that we have detailed in the bullet points below all of the pertinent information on this approved loan. They did not do an Equifax credit check, TransUnion credit check, Experian credit check, or a even aFICO score check. As you can see, the base effective APR was 41% on the note. This resulted in the total amount of interest being over $3000 levied over the one-year term.

Perhaps this would be okay with a debtor who was desperate for the cash, but we highly recommend not using a loan shark like this for your financing.

Each month the payment was over $900 and this borrower had a credit score of 343. They used an online service to find out what their credit rating was before looking for loan – so at least they got that right.

As a result of this loan application (and subsequent approval), the total amount of money paid back to the lender over the course of 12 months was over $11,000. Quite a tidy sum for the lender, and if they could do these loans without default they would be grinning all the way to the bank.

Data on NCCL in;

  • Equifax Credit Checks: N0 (confirmation pending)
  • Transunion Credit Check: No (confirmed)
  • Experian Credit Check: No (confirmed)
  • Fico Score Checks: No (confirmed)
  • Loan Shark Rating from FUSA: 90%/High Caution
  • Base Effective APR (no penalty): 41% (penalty will inflate)
  • Loan Amount: $8,000
  • Monthly Installment Payment: $940
  • Total Monies To Lender: $11,280
  • Total Interest Paid: $3,280
  • Loan Term Length: 1 year/12 months
  • Borrower’s Credit Rating (FICO#): 343
  • Loan Product Nomenclature: (NCCL)
  • Borrower’s Traditional Main Bank: PNC Bank
  • Applicant’s Area of Residence: Upper West Side
  • Other Areas Lender Provides Loans In: All NYC, All New York State
  • Nearest Major City Near Borrower: NYC
  • Debtor’s State: New York
  • Lender Classification: No Credit Check Lender

High Risk Lender in OH That Doesn’t Check Credit

Macy’s No Credit Check $21K Loan in Cleveland Ohio – 12 Month Period

Our second borrower who was seeking a loan from a lender that doesn’t check credit scores comes to us from the Cleveland Ohio area, and in this case the provider was charging a base effective APR of 33% on the note. This is the largest sum of money we have ever seen through our system and lent from a provider that doesn’t use credit checking.

The total amount of money borrowed was $21,000 over a period of 12 months, which resulted in a large monthly payment of over $2300 due each month. Payments were due on the 15th of each month. Luckily, this borrower also managed to pay faithfully every month over the one-year period. If she had not paid on time the penalties would’ve been crushing.

This lender has a medium caution rating but we still consider them to be a loan shark for all intensive purposes. This lender’s practices were reviewed just recently to make sure that they were still operating legally within the State of Ohio, and they barely met teh bar.

The total interest paid was just shy of $7000 over the year, and the total amount of money paid back to the lender was just shy of $28,000. So you can do the math – we’re looking at around $7000 in interest being paid on the deal. This is extremely expensive when you consider that if you have a good credit rating and get a loan from a traditional bank (such as the Bank of America, which this borrower uses for their main banking), they could get an interest rate around 3% or 4% on a HELOC, or 7 to 8% for an auto loan.

This borrower needed the $21,000 to buy a good SUV for commuting to work and back every day as she lives in Parma Ohio. It’s not a long commute, because the borrower is self-employed working at the Burke Lakefront Airport. In their case she makes really good money and she had the cash flow to pay all of her monthly bills, and still managed to make payments to this loan shark for the duration of the term.

Unless you are in a situation where you have this kind of cash flow from your business or work, you should never use a loan shark like this!

We have confirmed (as you can see in the bullet points below) that this lender does not check the credit scores of their applicants with any of the four different credit checking agencies  (listed below). We should point out that this borrower had a FICO score of 322, and you can see why the Bank of America wouldn’t even look at them.

Data on NCCL in;

  • Equifax Credit Check: N0  (confirmed)
  • Transunion Credit Check: No (confirmed)
  • Experian Credit Check: No (not confirmed)
  • Fico Score Check: No (confirmed)
  • Loan Shark Rating from FUSA: 63%/Medium Caution
  • Base Effective APR (no penalty): 33% (penalty will inflate)
  • Loan Amount: $21,000
  • Monthly Installment Payment: $2327.50
  • Total Monies To Lender: $27,930
  • Total Interest Paid: $6,930
  • Loan Term Length: 1 year/12 months
  • Borrower’s Credit Rating (FICO#): 322
  • Loan Product Nomenclature: (NCCL)
  • Borrower’s Traditional Main Bank: Bank of America
  • Applicant’s Area of Residence: Parma
  • Other Areas Lender Provides Loans In: All Ohio
  • Nearest Major City Near Borrower: Cleveland
  • Debtor’s State: Ohio
  • Lender Classification: No Credit Check Lender

Medium Risk Lender With No Credit Check in FL

Mike’s No Credit Check $16K Loan in Jacksonville Florida – 12 Installment Payments

Our third and last NCCL today is in Jacksonville Florida, and the borrower’s residence was in Magnolia Hills, and the lender does business in northern Florida only. This lender doesn’t check the credit scores of their customers either, and as a result they charge a hefty interest rate as well.

The credit score of this applicant came in at 368 when checked online. Their credit score was so badly damaged that they were on the verge of personal bankruptcy at the time of the application. Whether or not this debtor ended up claiming bankruptcy, we just don’t know. We do know that they had trouble paying this loan off and they were late on two of the payments throughout the year. This was also a 12 month loan with payments being just over $1600 per installment. We have given this company a loan shark rating with moderate caution as well. They still do business in northern Florida as we speak.

The total monies paid back to this lender or the 12 months ended up being just under $20,000 with the lender profit being $3800 approximately. The borrower in this case does their traditional banking at Citibank and at the time of this documentation they did not disclose the location of their branch.

This applicant used to live in Philadelphia where he had set up his original accounts with Citibank. His personal banking is still with Citibank at a Pennsylvania branch, but now he lives in Jacksonville. Regardless, it doesn’t really matter anymore these days where you live in relation to your bank branch.

As you can well imagine that with a credit score in the 300s this person had no hope of being approved by Citibank. He had no choice but to employ the services of a shark if he wanted to get a $16,000 loan.

You will notice that in all of our bullet point data we have included a loan product nomenclature, and in this case the nomenclature acronym is NCCL, which stands for No Credit Check Lender. Just thought we should point that out.

None of the typical credit checking agencies were used when this loan was approved, except for the possibility of Experian, and in later discussions with the borrower and lender we tried to confirm this. We never did get an answer back, but we know the borrower did get approved for the loan – so we are assuming that Experian was not used. We still had to enter into the data table that the confirmation of this fact is pending. Just needed to be up front about that.

We have other lenders who don’t bother with all of the credit checking hassles servicing borrowers in southern Florida as well. We are not going to get into them today, but suffice to say that their main offices are located in Miami.

In fact, I believe we have another publication on site where this lender was mentioned as the provider for a borrower living in the Miami area. As you can well imagine, we see hundreds of approved and disapproved applications going through for Miami loans – we could have a website completely dedicated to loans coming from Miami, Jacksonville, Gainesville, Orlando, Tallahassee, Tampa Bay, St. Petersburg, and Port St. Lucie.

We will not be creating that website anytime soon – we have enough on our plate already.

Data on NCCL in;

  • Equifax Credit Check: N0 (confirmed)
  • Transunion Credit Check: No (not confirmed)
  • Experian Credit Check: No (confirmation pending)
  • Fico Score Check: No (confirmed)
  • Loan Shark Rating from FUSA: 32%/Moderate Caution
  • Base Effective APR (no penalty): 24% (penalty will inflate)
  • Loan Amount: $16000
  • Monthly Installment Payment: $1653.33
  • Total Monies To Lender: $19,840
  • Total Interest Paid: $3,840
  • Loan Term Length: 1 year/12 months
  • Borrower’s Credit Rating (FICO#): 368
  • Loan Product Nomenclature: (NCCL)
  • Borrower’s Traditional Main Bank: Citibank
  • Applicant’s Area of Residence: Magnolia Hills
  • Other Areas Lender Provides Loans In: Northern Florida (only)
  • Nearest Major City Near Borrower: Jacksonville
  • Debtor’s State: Florida
  • Lender Classification: No Credit Check Lender

Conclusion of NCCL

So in summation, we have to say once again that we highly recommend borrowers find traditional and legitimate lenders in their local communities to borrow money from. You need to try all traditional lending sources first such, as your local bank branch, or perhaps a local credit union if possible, before you even wade into the waters where loan sharks swim.

It’s never a good idea to be taking on high interest loan products. If you do, make damn sure you can make your monthly payments on time.

There aren’t that many lenders who will do business with people who have credit scores in the 300s – actually FICO scores in the 400s and 500s make things quite difficult as well. Without getting into another lecture, you should try to keep your personal finances in order at all times so that you are not in a position where you are actually looking for lenders who provide loans without the use of credit checking. You are only asking for trouble.

There has been times when we have considered removing these lenders from our database altogether just to try and protect our users, but the fact remains – there is business to be done between lenders who don’t bother checking rather scores and borrowers who are on their last financial legs (so to speak).

We always suggest that you do your own homework and make sure that lenders are operating legally in your State, and that they have some kind of reputation locally. You can simply use Google, Yahoo!, or Bing to do some of your own research first before you sit down and sign any lending agreements with one of these loan sharking companies. You should also report any illegal activity to your local authorities if you come across a questionable lender who is breaking the law in regards to the amount of interest they are charging on the note.

So that does it for today, we wish you financial stability and a positive outlook! Be careful out there.