At times when fast cash is a must, personal loans with no credit check provide a viable alternative for those with bad credit. Also known as payday advance loans, this lending option will give you a cash infusion for as many as 30 days and can carry low rates from some internet lenders. These loans come in values as low as $100 and as high as $1,000. This article will provide you a quick overview of this lending option and some tips to finding the best lender online.
What Is a Payday Advance?
For people with bad credit, payday advance loans are a great alternative to high interest credit cards for small, short term loans. Generally, these loans are given for a short term, hence the term “payday advance,” since they are meant to act as an advance of your paycheck for those times when you are short on cash. Payday loans will need to be repaid by the next payday or two, so the carry a term of 14 to 30 days.
These loans are a great option for those with bad credit since they are granted based on income rather than on credit score. Oftentimes, payday advance loans will not even require a credit check to be performed and may not even be reported to the three credit agencies. Therefore, they will not negatively impact your credit report in the future.
Looking at the Numbers
Because of the short terms of these loans, they will carry higher interest rates than those carried by traditional personal loans – those are the rates that you see banks advertise. However, payday loans can carry reasonable interest rates as low as 10%, which is much lower than many credit card companies offer to those with bad credit. There are other payday lenders that will charge as much as 30% interest, however, so you need to make sure that you contact more than one lender and compare the rates that they offer.
Another factor that borrowers need to consider when it comes to payday loans is their principle amounts. These loans are given for as little as $100, but generally only as much as $1,000 or $1,500 depending on the lender. Make sure that you assess your needs before committing to a payday loan. If you need more money, there are other unsecured loan options for those with bad credit, but they are more difficult to acquire.
Why Choose a Payday Advance Loan?
Many people may wonder what the benefit of a payday advance loan could possibly be. Many people use payday loans for a variety of purposes which include emergency cash for car repairs and the like or as a means to avoid overdraft fees in their checking account. The idea behind a payday advance is to serve as a paycheck ahead of time. If you find that you are losing grip on the timing of your monthly bills, the quick cash infusion provided by a payday advance can fill that gap.
Avoid Online Scammers
There are certainly risks when it comes to this type of lending, however, which is why it is really important that you are careful when deciding on a lender. Make sure that you check out any lender that you consider through independent agencies such as the BBB (also called Better Business Bureau) as well as financial forums. There are plenty of resources for conducting background checks on lenders to aid you in avoiding a scam.
You also want to make sure that you compare interest rates across at least three lenders to make sure you get the best rates possible. Despite your bad credit, payday advance loans can help you to get fast cash in a pinch.