Not all people are able to borrow money from a bank because of having a poor credit history. Bad credit cash loans without the credit check gives a genuine relief when a financial emergency, such as paying the rent or a utility bill, comes up. While bad credit lenders are not always as blunt as the leading banks, there are a number of local and national companies that are willing to offer you quick cash advance to hard-up borrowers.
Bad Credit Cash Loans
One of the best places to run to for short-term finance is pawn shops and same day payday loan lenders. Given that the individual who wants to borrow money has a satisfactory identification, a quick cash advance will usually be made available in a matter of minutes. The greater likelihood of the borrower defaulting means that the rate of interest will be significantly higher than it is for a conventional loan.
Pawn Shop Loans
Pawnbroker loans are offered to those who are able to provide a collateral - things like gold, jewelry, endowment policies, vehicles and electrical equipments can be considered as collateral. The collateral will be assessed and valued so that the maximum size of a pawnshop loan can be estimated. It is possible to borrow well in excess of $10,000. The bigger the loan, the lower the rate of the APR. The rate of interest is normally from 50% to 80%.
Most of the bad credit cash loans have a six month term, but this could potentially be extended should the value of the collateral provided be sufficient. The borrower should return to the pawnbrokers to claim the item. This is achieved by fully setting the loan and any interest that has increased. If this happens, the item will be sold to recover any money that was lent.
Same Payday Loans
Given that the borrower is a full-time employee and is able to provide photo identification of such employment, it may be possible to get a fast cash advance of up to $1,000. Unlike that of a pawn shop loan, there is no need to provide any collateral to avail this type of loan. But, for every $100 will usually grow a $20 interest each month. This means that it is only ideal to borrow money for a short period of time.
Obvious with its name, the term same payday loan is normally one calendar month. The borrower writes a post-dated check to clarify when that person is paid. The process is clear-cut and straightforward, but interest rates continue to increase should the money is not repaid on time. It is very important that the applicant avoids getting caught up in a cycle of dependency.