The Difference Between No Credit Needed and No Credit Check Financing

We're here to give you a quick breakdown of the differences between no credit needed and no credit check financing. Financing terms often confuse and frustrate the average buyer. The legalese makes things complicated and irritating, but we want to do our part to be as clear and helpful as possible.   

No Credit Check Loans 

No credit check loans are usually personal loans that you must pay back within 14-30 days. These no credit check financing options are often very limited in their scope and don’t ask much of you. You can recognize them because they use tag lines like, “All you need is a job and you’re approved!” No credit check loans won’t ping your credit, but the most they will usually loan you is $1,000. And the financier will almost always add exorbitant hidden fees. To make matters worse, these types of no credit loans have high APRs that make it almost impossible to pay back. Payday loans are the most common type of loans that don’t check credit. To learn more about payday loans you should read our blog post about them here

No Credit Needed 

No credit needed options don’t pull your FICO score, but they will check other third-party data providers to ensure you are a real person with real intent. These companies, like Kornerstone Credit, are not financing. Instead, Kornerstone Credit offers consumers a lease that ends with the consumer becoming the owner of the merchandise. Leasing means a few different things. First, you don’t technically own the merchandise until you fulfill the terms of your contract. Second, and more to your benefit, we give you the full terms up front, with no hidden fees or accruing interest. If you purchase a new sectional for $3,000, Kornerstone will draft up a lease-to-own contract for a one year term that lays out the total cost up front. 

You can look at the contract and know exactly what amount is expected of you during the next 12 months. Then you are done. As long as you make your minimum monthly payments on time, you will pay off without any additional fees or costs.  

But even better than that, no credit needed leasing options, like Kornerstone Credit, offer discounts for paying off early. When you make your minimum payments on time and pay off in 90 days, Kornerstone will waive most of the leasing cost. Even after the 90-day period there are opportunities to discount your lease when you pay off your account early.

As always, we want to help. So please call us at 888-521-5111 If you have questions about your specific lease program.

So Yes, 

There is a difference between no credit check and no credit needed. No credit check options are often designed to trap people with bad credit in a never-ending cycle of debt. Whereas, no credit needed options (like us) are designed to be less expensive than a payday loan and have a final end date. We’re not here to trap you. We’re here to help people that are struggling with their credit buy the things they need.  

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