Usually if you are seeking cash loans with no credit check, this may be a sign that you are struggling financially. Whether you have bad credit, adverse credit or a poor credit rating you have probably found it pretty much impossible to secure a loan via more traditional methods.
However, i would always suggest that cash loans with no credit check are usually a short term solution for your financial difficulties. So what are the main things you should look out for:-
Disadvantages
- Most lenders realize that lending to people with poor credit is more likely to result in default of the loan. Therefore, to counteract a possible future loss, you can expect to be charged a higher interest rate than usual.
- Should you ever miss any payments to your loan, you can expect to be penalized. This could result in additional charges and fees and another hike in your interest rate.
- As I have previously mentioned, this type of loan is merely a short term financial solution. Due to the level of interest you may be charged, it will always be better to pay your loan off as quickly as possible!
- This can lead to further financial difficulties a few months down the line. When you initially receive your cash, everything seems great. Then once you have spent your money on whatever you needed it for, you are merely left with an additional monthly expense burning another hole in your pocket!
Advantages
- If you are struggling to pay the rent or urgently need food or to pay a bill and you are a few weeks away from payday, this type of cash loan can be a godsend! A great short term financial fix to help those worries go away.
- Cash loans with no credit check can usually be approved immediately and you may even receive your payment on the same day. Because you are not going the standard route of obtaining credit, there are less "official" issues to deal with.
- If you have defaults, CCJ's or even a bankruptcy, you know you are never going to pass a standard credit check. Therefore by omitting this stage of the process, you are far more likely to be able to be approved for your loan.
- There are usually no restrictions on what you can use the loan for. So whether you wish to consolidate some debts, buy a new car or go on a family holiday, the choice is yours!
