No Credit Check Cash Advance Loan – Borrowing Money With Weak Credit
A no credit check cash advance loan is a short-term cash loan where the lender does not check with the credit reporting agencies in order to determine whether the customer has sufficient credit to qualify for a cash loan. No credit check payday loans are normally granted for relatively small amounts of cash, greatly about $100-$1500 or so, dependant upon state laws. The personal loans are granted for a two week period and are meant to pay for the borrower’s expenses until they receive their next paycheck. Some people use them for for a longer time, but because of the pretty stiff rates of interest, doing this can be expensive.
Most financial institutions and credit unions will regularly run a credit check on prospective borrowers in order to confirm they have a good history of paying their expenses and repaying their loans. Internet cash advance lenders and traditional quick cash loan stores often don’t look into the credit of their clients. In reality, they generally publicize this in order to draw customers who may be ineligible for loans from banks as a result of weak FICO score. This attracts many clients who either have a bad credit score or no credit whatsoever. Additionally, lacking a credit check can accelerate the loan authorization procedure, meaning that the customer will get their or her cash earlier than they otherwise might.
No credit check payday loans aren’t as beneficial as they may appear to be at first. Lenders to give out loans to individuals without first checking out their credit are more likely to provide loans to people that will not repay. Because of this, the interest rates they charge for their short term loans are noticeably higher than the rates charged by banks for personal loans. A two week loan of $100 from a payday loan provider will cost the borrower $15, so that they must pay back $115 two weeks after applying for the loan. When looked upon as an annual percentage rate, this comes down to 390% annually, where someone with good credit might be able to borrow from a standard bank for under 10% annually.
Loan providers fight for these interest rates by pointing out that banks will not give small sums to their clients at all, as it is uncommon to see a bank offer an installment loan for less thanone thousand dollars. Additionally, the larger interest rates help compensate for the higher delinquency rates that payday lenders experience because of lending to people without first checking their credit. Payday advance lenders also point out that borrowing $100 from them and repaying $15 in interest remains less expensive thana returned$100 check at the bank, which can carry a $30 penalty fee.
No credit check payday loans are not for everyone, but they can help responsible consumers who require a small amount of money for a short period of time. For individuals who have long expression financial requirements or who may need to borrow more money than is usually available from a cash advance loan lender, talking to a bank probably makes more financial sense.
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Perry Monkhouse is an online marketer with ten years of expertise. He has authored articles on many different topics.
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