A short term cash loan can help a consumer to cope financially in the event of an emergency situation. Others use a fast unsecured loan to pay for their holiday. There are no controls in relation to how the loan should be used. It may be possible to get a quick cash advance, without the need for credit scoring, in less than 30 minutes. A low credit score isn’t an obstacle as lenders use a different set of criteria to determine whether a customer should qualify.
Short Term Cash Loans
It is possible to get a no credit check loan from a payday lender, pawnbroker or credit union. Whilst payday and credit union loans are unsecured, a loan from a pawnbroker will require the provision of collateral. A quick cash advance is typically provided for a period of one month. Whilst it is possible to settle the balance before the due date, any money borrowed will accrue interest for the full month. The high rate of APR on a short term cash loan means that it isn’t wise to extend the borrowing term.
Instant Payday Loans
The criteria for a loan until payday are that the borrower is a US citizen, over 18, in full-time employment, has access to a checking account and can provide two forms of ID. The cost of a quick cash advance from a payday lender is normally $20 to $25 per month for each $100 that is borrowed. This means that a consumer taking out a short term cash loan for $750 will need to provide the lender with a post-dated check for $900 ($750 principal plus $150 interest) that is set to clear on payday.
Pawn Shop Loans
The cost of a loan from a pawn shop is normally the same as an instant payday loan. However, in order to get approval for a short term cash loan, the borrower will need to provide collateral (gold, silver or jewelry). Failure to redeem the item will result on it being sold to recover the lender’s money. This means that the lending criteria for a quick cash advance loan can be more flexible. Unlike a loan until payday, it isn’t necessary to be in full-time employment or have a valid checking account.
Credit Union Loans
Rather than charging the borrower interest, the cost of getting a fast payday wizard loan comes from an upfront fee. For example, the Nevada Federal Credit Union charges a fee of $70 for a $700 loan for two weeks. This is equivalent to a rate of APR of 455%. The terms are virtually identical to an instant payday loan, although credit unions are more likely to show sympathy in the event of money problems.
Pros and Cons of No Credit Check Loans
Whilst a short term cash loan can help when a genuine emergency crops up, many consumers borrow money when they don’t really need to. The usury rate of interest, coupled with the repayment of the principal, will leave less money to pay the bills the month afterward.