Negatives of No Credit Checks

When people hear of a store allowing them to finance with no credit check they are usually more than happy. However, going for these types of stores or catalogues is never recommended due to the fact that they do not come along with the benefits that a credit check financing option is going to be able to offer you. So, before you consider financing with a no credit check store or catalogue you will want to consider the following negatives that are going to be discussed below.

Deposit Required
When you decide to take the route of financing an item without having to undergo a credit check you are going to be guaranteed to have to pay a deposit. It is true that even if you do go with a financing option that require a credit check that you may have to pay a deposit as well yet this is something that depends on other circumstances it is not 100% guaranteed as it is with the no credit check financing options.

Does Not Report to Credit Reporting Agencies
When you go with a store or catalogue that does not require you to do a credit check before being approved you are not going to have your account reported to the credit reporting agencies. This means that even if you do make all of your payments on time or pay off your balance early your credit report is not going to be affected positively. So, by taking this route it is not benefiting you for future events. If you go the credit check financing way you will have your payment reported which will look positive in your favor when you go try to apply for financing on more expensive items such as cars, boats, and homes.

Higher Interest Rates
Since no credit check financing is approving you off of your pay stubs and bank accounts such as Pay Weekly Store you are going to receive higher interest rates on your products than you would if you were to deal with another store.

Overall, there are more negatives than positives when it comes to financing an item without a credit check. The decision still remains up to you as to what you want to do when it comes to financing a product. However, the smart decision would be to go with a store or catalogue that offers a credit check so you can benefit in the end.