It is not easy to get loans without credit check in UAE, as financial institutions and banks who give out loans will determine your creditworthiness before deciding whether you are eligible for the loan. What if you are in a condition where you don’t have a credit history or it is poor? Is there any hope for you to get a loan?
Despite not being very easy, it is not an impossible thing. There are still ways you can go through them. This article will explore the best ways to access loans without credit check in UAE.
Can I Get a Quick Cash Loan with no Credit Check in Dubai?
Yes, you can get a quick cash loan with no credit check in Dubai. Some private lenders can give you loans without carrying out hard checks. However, these lenders tend to consider other information to determine your eligibility, such as banking history, employment status, income, rental history, and education status. The disadvantage of these private lenders is that their interest rates can be very high.
It is advised that when considering a quick cash loan with no credit check in Dubai, you should note the interest rate, related fees, repayment terms, and reputation of the lender.
How to Get Loans Without Credit Check in UAE
It is not easy to get loans without credit check in UAE from the banks, especially if the loan is unsecured. However, if you don’t have a credit history or it is very poor, here are options you can explore and easily get loans. Note that each has its advantages and disadvantages. You should weigh both sides and choose which to go for.
1. Peer to Peer Lending (P2P)
Peer-to-peer lending is one of the most common ways to get a quick cash loan with no credit check in Dubai. Some private lenders can offer you loans without carrying out credit checks. Some serve as platforms to link you to lenders willing to help you with loans.
Since most of these private lenders do not carry out credit checks, they resort to going through certain documents to prove your eligibility. The advantage of these p2p platforms is that they have less stringent rules and protocols than banks. They have a faster loan approval rate and less paperwork is required. However, the disadvantage is that their interest rate can be twice that of the banks and you are less protected because they aren’t as regulated as the banks. So, you can be exploited.
It is advised that you carefully examine the terms and conditions of any P2P platforms before borrowing from them so that you won’t be trapped in the debt cage,
2. Salary Advance Loan Platforms
For salaried individuals in the UAE, this is one of the ways you can get loans without credit check in UAE. They are available to individuals with a steady source of income, and the loan is given and automatically deducted from your next paycheck.
There are popular banks in UAE that offer salary advance loans at good interest rates. These salary advance loans usually have lower interest rates than other types of quick cash loan with no credit check in Dubai.
The advantage of salary advance loans is that their interest rate is low, their approval rates are high, as they are approved faster than other types of loans, and the repayment method is convenient. The disadvantage is that the repayment duration is usually short – usually 30 days, and deducted on your next paycheck. Another is that they have high fees, such as origination and late payment fees.
3. Secured Loan
A major way to get loans without credit check in UAE from banks is to go for secured loans. Most times, banks can accept the application for loans without credit checks if the loan is secured. You can secure the loan by mortgaging your assets, such as buildings, cars, gold, or anything of value as collateral, and get the loan against them.
The advantage of a secured loan is that they have a low-interest rate, but the disadvantage is that you might lose your assets to the bank if you fail to repay the loan.
4. Credit Card Lending
Having a credit card can be a good way to get loans without credit checks in UAE. This is one of the most convenient ways to get a loan without going through many processes. All you have to do here is to contact your credit card company and request a quick cash advance. The company will review your account and determine your eligibility. If you are eligible and your request is approved, the money will be instantly sent to your account.
Despite being convenient, the interest rate is usually high and can be a big burden for you. Also, the credit card company can charge an extra fee on your credit card for this service, and the repayment duration is usually short.
What Credit Score is Considered Good for Personal Loans?
Technically, for a credit score to be considered good for a personal loan in UAE, it should be up to a credit score of 700 points or above. Credit score ranges between 300 and 900 points. A 300 to 570 credit point is considered poor, 570 to 710 is considered fair, and those from 711 to 745 are considered good. 746 to 900 points is considered excellent. The higher your credit score point, the higher your chance to get loans with good interest rates. Those with good or excellent credit scores usually have loans at competitive rates compared to those with fair or poor credit scores.
What is The Minimum Credit Score for Personal Loans in the UAE?
To get a personal loan in the UAE, the minimum credit score you need is 580. While 580 is regarded as a low or fair credit score, some banks will still accept loan applications from individuals with it. However, the interest rate might be a bit higher compared to the situation if you had a better credit score point.
Does Credit Score Affect Cash Loan Application in UAE?
Yes, credit score plays a great role in deciding whether your cash loan application in UAE will be accepted or not. It does not only affect your eligibility but also the interest rate you will be charged. The better your credit score, the lower the interest rate you will be charged, and the poorer your credit score, the higher your interest rate. So if your credit score is poor, it is advised you take conscious steps to build it.
Conclusion
With a poor or no credit history, you can access loans without credit checks in UAE through P2P platforms, credit card financing, secured loans, and salary advance loan platforms. Always read the terms and conditions before borrowing via any of these options, as carelessness with any of them can keep you in the debt trap continually.