Buy now pay later plans can be a good way to get something that you need right away but be aware that it is rarely with no credit checks as some websites may put up and with usually a high interest rate. People who buy things on a no credit check plan might be ones with a bad credit history and this might be the only way they can buy things they want. This might not always be a good thing. It might be a good option when the economy is down and you intend to save money to pay for something. But unless you can pay installments back on time you might end owing the seller much more than you started out with.
Usually, no credit checks are for products that cost less than a £100 and last only for a 2 week period and are meant for emergencies only. They need to be reimbursed through a check for the same amount plus fees. Since they last for such a short time, interest rates are higher as well so say, for a loan of £100, the rate of interest would be 40%. This is attributed to the fact that people who opt for such loans have bad credit histories and do not pay up so the lender will always charge high interest to cover the extra risk that a bad credit customers brings.
The amount of money that a person can borrow is decided upon by the person’s income and the return time is decided by a person’s average income per day.
Though these loans are very popular, it is easy to fall into debt. If someone is in need of money, they should make sure that they will be able to return the money as a bounced check and late repayment may result in additional charges to the buyer.