The easiest loan to find and be accepted for is a quick no credit check loan. These are non traditional loans and don’t involve a visit to the bank, cap in hand, to fill out lots of paperwork and be kept waiting for a decision. With a quick no credit check loan you will have a decision within minutes if the cash you need to borrow is yours. You can apply for them in any payday loan store and walk out with the cash in your hand, or you can apply online and the funds will be in your bank account the next day.
There are pros and cons with any loans but many find this type of loan has many advantages which out weigh the negatives. The speed involved in obtaining a payday loan is a great feature as you won’t need to take time off work to visit a bank. If you choose to visit a payday loan store they are open outside traditional banking hours. If you have a convenient store but no access to a home computer, then you have the security of not putting your bank details on a shared or public computer.
Anyone who is over 18, and has either a regular income of around $1000 per month from working or social security, plus a current checking account, will be approved for a loan. You are assessed on your ability to repay the loan from current income rather than your past financial performance. No credit checks are done which means that for those with no credit history, or a bad credit rating, your credit score does not come into the equation.
Another advantage of a no credit check quick loan is that the lenders do not report to the credit bureaus either, so the loan won’t show up on your credit report. This is good for those with a bad credit history who are trying to improve their credit score so don’t need a new credit application registering in their name at that point.
The loans are short term so you know exactly where you stand, and what the total costs involved will be. As they must be repaid in full with the next pay check there is no worry about paying them off over a long period of time or changes in the interest rate. These loans were designed for people who need a quick cash influx between pay days for an emergency. It makes sense to borrow money to prevent a utility being turned off, if the loan fee is less than the reconnection charge. You may be faced with an emergency car repair, or medical matter, which you really need the cash for now, but don’t have.
The fees on these loans are upfront and straightforward. You pay a set fee of anything from $10 to $30 for every $100 you borrow. If this is an acceptable charge for you to pay it is simply repaid with the loan. The downside of quick of no credit check loans isn’t really in the product itself but in the way they are misused. When people start paying high fees it is because they fail to pay the loan back on time. This would also be applicable though with any type of loan or credit obtained.
The fee itself does make these loans an expensive way of borrowing. It could be said that they prey on those who have no where else to turn when cash is needed in an emergency, but at least it gives them access to needed funds.
The real problem with quick no credit check loans is the way in which they are handled by those who really are financially clueless. If someone takes out one of these loans to pay off another loan, and fails to pay them off in full, they will lead to debt. There are those who may need a few hundred dollars quickly but decide to borrow far more, even though it will not be realistic to pay it back in full from the next pay check. When they start to roll over the loans they ask for trouble and will suffer the consequences of increased debt, in the same way that credit cards lead to debt when they aren’t repaid and the debt grows. These loans are not intended as a way of life.
With everything taken into consideration quick no credit check loans have advantages; speed, ease, granted regardless of bad credit, discreet, upfront fees, handy for emergency cash needs. The disadvantages are not with the product itself but created by those who misuse them. Used in a responsible manner the pros outweigh the cons.