Adverse credit makes it a lot harder to borrow money, but getting quick cash loans isn’t an insurmountable obstacle. Specialist lenders offer guaranteed loans for bad credit to those who the banks are no longer prepared to lend money to. No credit check loans are more expensive because the risk of default is far higher when lending blind. This means that borrowing money is only suitable for a short term financial emergency. The only method suitable for borrowing money over the medium term is a secured homeowner loan. The provision of collateral allows the lender to offer a lower rate of interest.
Guaranteed Loans for Bad Credit
It is possible to get a quick cash advance with no credit checks from a payday lender, pawnbroker or a credit union. It is normally possible to get approval within a maximum period of 24 hours. The cost of borrowing $100 for a month is about $20 to $25. Whilst some consumers turn to a loan shark, this is not recommended as they do not operate within the confines of the law. Also, think carefully before borrowing money when out of work as interest accrues quickly.
Pawnbroker Loans – No Credit Checks
Pawn shops provide guaranteed loans for bad credit based on the provision of collateral. The customer provides an item of value (gold, silver, jewellery, electrical equipment) and the value will be assessed and a maximum lending limit determined. It is the borrower’s responsibility to pay back a pawnshop loan (the principal and accrued interest) at the end of the borrowing term. Failure to redeem the item will lead to the collateral being sold in order to recover any money that was lent.
Quick Cash Loans Until Payday
A payday lender offers poor credit loans for up to $1,000. In order to receive approval, the applicant must be a U.S. citizen, at least 18-years old, in full-time employment, have a checking account and be able to provide a minimum of 2 forms of identification. Provided that the borrower is able to meet the above criteria, a bad credit payday loan is guaranteed. The lender needs a postdated check from the borrower that will cover the full amount borrowed plus any interest. Provided that the application is received before 2.30 PM, the money will reach the borrower’s checking account on the same day.
Loans with no Credit Checks from a Credit Union
People join a credit union on the basis of a shared interest (locality, vocation, religion etc). Credit unions are non profit organisations that operate purely for the interests of their members. Just like payday lenders, they also offer guaranteed loans for bad credit on similar terms. The main difference is that a credit union will work with the member to ensure that they are in a position to repay the debt without creating further financial hardship. They will also be more sympathetic in the event of money problems.
Pros and Cons of Poor Credit Loans
A guaranteed loan for bad credit provides are an effective way of borrowing money for an emergency when that person doesn’t have anywhere else to turn. However, the rate of interest is high which means that a quick cash advance will leave less money to pay the bills in future months. It is very easy to get trapped into a cycle of dependency so avoid borrowing money with poor credit unless it is absolutely essential.