Those who need a quick loan regularly turn to a credit union, pawnbroker or payday lender, especially if they have a bad credit rating. A customer can get a fast cash advance without faxing in under 24 hours. It is possible to borrow money with bad credit for any purpose. The cost of borrowing is high so it is worth exploring other avenues, such as a bank overdraft, credit card cash advance or family loan, first as they could provide a more affordable alternative.
The Cost of a Short Term Cash Loan with No Credit Checks
The market for easy quick cash loans arose because traditional bank lenders have turned their backs on previous customers who have experienced difficulty maintaining their repayment schedule. A recognition that credit scoring has been rendered pointless for certain customers has led to a different set of lending criteria based around the borrower’s ability to repay the debt. The higher risk of default means that it normally costs $20 to $25 to borrow $100 for a calendar month.
Quick Payday Cash with Bad Credit
A payday loan lender specialises in offering small cash loans to customers with a history of adverse credit. There is no credit scoring. Those who need a quick loan must be a U.S. citizen, at least 18 years old, in full-time employment, have an active checking account and be able to provide 2 forms of identification. Provided these criteria are met, all that the customer needs to do is provide a postdated check equivalent to the value of the principal and any interest that will accrue. If the application is submitted before 2.30 PM, quick payday cash will reach the customer’s account within a few hours.
Need a Quick Loan from a Pawnbroker?
A pawn shop loan is an ideal short term loan with no credit check for the unemployed or those in temporary work. The lender provides a fast cash advance based on the provision of an item of value, such as gold, silver, electrical equipment or jewellery. It is typically possible to borrow about 50% of the items value for up to a month. Depending upon how much is borrowed, the loan term could be extended. Failure to redeem the item by settling the debt will result in the collateral being sold. Whilst the item will be lost, there won’t be any outstanding debt, further interest payments or charges.
Short Term Cash Loan from a Credit Union
In order to borrow money with bad credit, it is necessary to become a member of a credit union. People typically join on the basis of a shared interest, such as employment or locality. Others are able to join because they are related to an existing member. Credit unions provide a variety of financial services and can assist those who need a quick loan. As they operate for the interests of their members, it will be necessary to prove affordability. Whilst the terms of borrowing for a fast cash advance aren’t much different to a quick payday loan, credit unions are more understanding in the event of money problems.
Pros and Cons of Instant Decision Loans
A short term cash loan from a credit union, pawnbroker or payday lender can help to meet an urgent financial need, such as paying the rent. The problem with borrowing money with bad credit is that the rate of APR is high. Paying back the principal alone is difficult for those on a fixed income, let alone settling any interest that has accrued. This can lead to a cycle of dependency.