Those with poor credit often need fast cash to help with a financial emergency, such as paying the rent or an unexpected bill. Traditional lenders perform credit scoring in order to determine the risk of the borrower defaulting. Missed and late payments mean that bank lending may no longer be an option. This resulted in the creation of a new market for small cash loans with no credit checks.
Need Fast Cash and Unsure Where to Turn?
Subject to meeting the eligibility criteria, it may be possible to get an emergency cash advance from a pawn shop, payday loan lender or a credit union. Quick cash loans with no credit checks are more expensive, but approval is guaranteed for those who are able to comply with a different set of borrowing requirements. Whilst unsecured bad credit loans require the borrower to have a job, this may not be necessary for someone who is able to provide security. It costs about $20-25 to borrow $100 for a calendar month.
Quick Cash Loan with No Credit Checks from a Pawn Shop
A pawnbroker loan involves providing the lender with collateral (gold, silver, jewellery etc) in return for an emergency cash advance. The lender assesses the items value and tenders a maximum small cash loan value. The customer will then need to produce suitable identification and sign the contract. Once all the formalities have been taken care of, the borrower will be given their money and a receipt. It is important that this is kept hold of as it will be needed to redeem the item at the end of the term.
Emergency Cash Advance from a Payday Loan Lender
Most consumers who need fast cash turn to a payday lender. Although there is no credit scoring for a same day payday loan, the applicant must be a U.S. citizen, at least 18, in full time employment, have a valid checking account and provide two forms of identification. The borrower provides the lender with a postdated check for the principal and any interest. A quick cash loan is guaranteed to reach the customer’s account the next working day at the latest.
Small Cash Loan from a Credit Union
In order to get an emergency cash advance from a credit union, it is necessary to become a member on the basis of a shared interest (job, locality or religion). A lending officer assesses whether a quick cash loan is affordable before tendering an offer to the member. Whilst the lending terms are similar to a same day payday loan, the lender is more likely to show sympathy in the event of money problems.