That is a question that many users ask themselves. And the answer is logical: yes, loans without a Bureau have interests and rates, as with all others. Now, do they have more or less interests than others? That is a question that we will try to answer in the following lines, which make a global review of the costs of this new financing channel.
Before going into detail these aspects, it should be remembered that the name with which these credits have become popular could lead to misunderstandings: it does not mean that personal loans are granted without checking the Credit Bureau, but rather that the lender, after having checked, you may decide to accept that request even if the applicant has debts recorded in this database.
Interest and rates on loans without a Bureau
The so-called loans with Burò have interest and rates, as in all loans, whether online or conventional, whether low or high, either single payment or in different fortnights. It is nothing new and it is logical that this is the case: the lenders obtain their benefits in this way, otherwise the business model would be unsustainable.
What happens on some occasions is that the first loan is paid as a promotional measure: the lender makes your product more attractive for the user to try it and, if satisfied, repeat in the future. However, it is a measure that not all companies do or can do even on second and third occasions.
From those first personal loans without a Bureau, the following are not free. And they have progressive interests, depending on the amount and term to choose. In general, the rule is as follows:
- The lower amount and term, lower total cost of interest, but with an Annual Total Cost (CAT) proportionally higher
- The higher the amount and term, the higher the total cost of interest, but with a proportionally lower CAT
Clarification on the CAT
In relation to the Total Annual Cost, it is convenient to make a clarification. It is true that the percentages of CAT that are shown in online loans without a bank are comparatively much higher than those offered, for example, personal bank loans. CATs for online loans tend to be three digits (above 100%) and sometimes four digits (above 1000%). Bank loans never reach those figures.
Why are they apparently that tall? Because they are calculated based on a deadline that does not correspond to them: even if it is expressed on an annual basis, an online loan never has a payment term of one year. Therefore, what it expresses is the total interest that would result if the term were one year. But since it is less than one year, the real interest is not well reflected by that unit of measurement. It would take a Total Monthly Cost, which does not exist at present.
Factors that can influence the calculation of interest
We remind you that we are just a comparison of credits of all kinds: from loans without Urgent Credit Bureau to express loans, passing through many others. Therefore, what we indicate here is of a general nature and it is the lenders who ultimately decide their cost policies. Therefore, to learn more about interests and rates, we encourage you to visit their pages by clicking on the buttons you will find in our listings.
Normally, lenders have their tools to automatically verify the data sent in the request. They usually take a few minutes and without the intervention of any person. However, if the request is complex and requires further study, the lender can accept the request in exchange for increasing its cost. Some of the factors that can cause this is precisely the profile of the applicant in the Credit Bureau, their personal economic situation or their employment situation.
In addition to these interests and these factors, there are other concepts that also have costs to take into account. For example, extensions : if a user decides to delay the payment of his loan, this extension has an extra cost that was not included at the time of the request. Therefore, this is one of the reasons why we recommend paying the loan on time, without delays.
Of course, there may be other costs that the client would have to bear and that are not related to the lender. For example, if you decide to pay your credit by bank transfer, that transfer may have a cost. Or if you want to check your debt report yourself in the Credit Bureau, it could also have a cost.
How to use our comparator
In our comparator we show you a list of the entities that grant loans in cash without consulting the Credit Bureau or, as we said before, that they do not take it into account when accepting the request. This is a second opportunity for many clients who are part of this list, conscious or not, and find it difficult to finance themselves by other methods.
This list is divided into columns, with the name of the lender and the amount and term of their credits. It is convenient to pay attention to the scoring section, since it reflects on a scale of 1 to 5 stars the valuation that other clients have given of it. This table does not show the interest to be paid, but we do offer a direct link to the lender’s website so you can know all the figures first-hand.
Our comparator is completely free, so follow that link has no costs. You can also explore other sections of this website to find out about all the lenders we work with, regardless of whether you check or not check the Credit Bureau. We have made a file for each of them where you can find contact information and other information of interest