Payday Loans

Does A No Credit Check Payday Loan Make The Best Financing Option For People With Bad Credit?

People with bad credit are usually the most desperate ones when it comes to borrowing no credit check payday loan; they tend to accept every offer that comes their way without thinking twice. After all, it is generally very difficult for them to qualify for a low-rate loan or for a loan at all because of their poor credit history. In fact, even when they are aware that payday loan programs that do not check their credit to determine their eligibility for the loan charge an extremely high rate of interest and that they make a highly costly financing option, they readily go for it. So, let’s get back to the basic question if their credit-poor people have better alternatives. The answer is yes. If you try to explore the possible options out there, you will end up getting yourself surprised that there are several less expensive ways that can help you get money without putting your financial life at risk. Following is a brief overview on it.

Getting An Advance From A Credit Card

Though conventionally, it is a bad idea, but if compared to a no credit check payday loan, it definitely makes a better option. The interest rate charged by credit cards is also very high, but if you compare it with what payday loan companies charge, you will find the rates still much lower. Where you may have to pay somewhere around $30 – $50 as interest on a payday loan of $100 taken for a period of fourteen days, the interest on the same amount of advance taken using your credit card should not cost you more than $10 or much less for the equal period of time. Besides that, credit cards also provide you the convenience to make a minimum monthly payment to ensure no penalties are charged. It means even if you are not in a position to pay back the borrowed money the next payday, you can go ahead by just making the minimum monthly payment. But, you are advised not to use this convenience again and again for a long time because even though credit cards charge comparatively lower interest rate, the debts still grow much faster as compared to other conventional loan programs.

Besides that, some common sense alternatives to a no credit check payday loan are also available, which you may like to give a try. For example, you can request an advance from an employer.


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Posted in Payday Loan Alternatives, Payday Loans | 1 Comment »

One Response to “Does A No Credit Check Payday Loan Make The Best Financing Option For People With Bad Credit?”

  1. Sams says:

    Very good points . A loan with a poor credit history seems to be an impossible question to answer. It is really very difficult to qualify for a loan with a bad credit score, after all your credit history reflects your financial status and your punctuality towards your financial matters. No credit check payday loans attract people with poor credit. When these people do not find any other option, they just take this opportunity of getting a loan with no credit check. But actually it is not good for your financial health to accept such offers. If you are really in need of money, you should try some better options instead of such offers. There may be so many options of getting money; you can try the last option of taking cash in advance from a credit card. It is true that is is very expensive but if you do the comparison of interest you will have to pay in both the conditions; you will find that this option is comparatively cheaper than the payday loan. One more option is there; if you can get some advance from your employer, this way prove to be the best option for you.

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