Checking the credit history of any borrower is the most important step in any lending process. Lenders do this for obvious reasons but most of the borrowers hate undergoing credit checks, which disclose their credit history to strangers. This is especially true for those having poor credit history or frequent defaults. There are many reasons for which people like a no credit check loan. It could be that they do not have any credit history or they do not want to undergo the humiliation of a credit check. Whatever the reason might be, but the fact remains that the lender does not have a clear picture about how a particular borrower has fared in the credit market and how good is he at the repayments. Indeed, the risk is greater for the lenders in giving a loan without any credit check.

Getting a No credit check secured loan is quite difficult if you do not have any collateral to offer. A positive credit report is something, which gives comfort to the lenders. In the absence of a collateral and credit check they impose strict conditions for lending. A proof of continuous employment and a minimum salary limit is required to get a no credit check loan. The amount lent in this case is also small, usually proportional to the salary of the borrower. Therefore, if a borrower is unemployed and is not able to convince the lenders by his monthly income, the only way that he can get a no credit check loan is by offering a sufficient collateral.

When a collateral is offered the loan is called a secured loan. After finding that the collateral is sufficient to guarantee the loan amount, the lenders don