Payday Loans

What Are The Benefits Of Borrowing A Cash Advance Without Credit Check?

There are seemingly endless benefits of borrowing a cash advance without credit check, but there are certain risk actors as well that you must be well aware of. Sometimes, you may have to go through an unexpected short-term financial crisis. For example, if your car has broke down and if you do not have enough cash to repair the same, a payday cash advance seem to be the perfect solution, as it allows you to borrow money instantly, within a matter of just a few hours. You can use the money thus borrowed to meet any kind of expenses. The only problem with payday lending is that it charges interest at an extremely high rate. The APR (annual percentage rate) is usually in three digits, which means you may have to pay somewhere around $30-$50 (or sometimes even more) for every $100 of loan that you borrow for as small a period as two weeks.

Bad Credit Is Not A Problem

A cash advance without credit check does not care about your credit score. It means even if you have bad credit, you can easily qualify for it. Unlike conventional lenders, payday loan companies do not check your credit score to determine your eligibility. They only require you to meet some simple qualifying criteria, which include a decent employment record with a checking bank account in your name. If you do not have a checking bank account, most lenders will not entertain your application for cash advance.

Your Post-Dated Check Covers The Risk

By issuing a cash advance without credit check, lenders obviously seem to take risk, as people with bad credit are usually not the best candidates to ensure timely repayment. Payday loan companies try to cover this risk by asking borrowers to submit a post-dated check. Lenders send this check for collection on the set due date and get their money back. Alternatively, some lenders require borrowers to authorize them for direct debit. This way, lenders get an access to the bank account of the borrower. They can send a request for direct withdrawal of the agreed amount (principal amount plus interest and other fee) to the bank and thus get their money back.

Non-Sufficient Fund In Your Bank Account On The Set Due Date

If you do not have sufficient amount of money in your checking bank account on the set due date for cash advance without credit check, the check will obviously bounce as well as the direct debit request of the lenders will also fail. In this case, lenders will charge you a hefty penalty charge in the form of NSF fee. Most of the lenders try to take undue advantage of this situation and they keep sending the same check again and again for collection, which makes things quite problematic for you, as you are charged NSF fee for multiple times. Besides that, even banks also charge a hefty amount of fine every time a check issued by you bounces.

Even if you are confident that you can pay off a cash advance without credit check on its scheduled due date, it is still a very costly option. It does not make financial sense to pay back $150 or more for a $100 of loan. You are advised to look out for better alternatives. You will be glad to know that even credit unions and other conventional banks have also started offering short-term small loans at reasonable rate of interest.


Custom Search

Tags:
Posted in Payday Loan Benefits | No Comments »

Leave a Reply

You must be logged in to post a comment.