Poor credit lenders specialise in offering fast cash advance loans to customers who wouldn’t pass a credit check due to an adverse credit history. Loans with no credit checks can be taken out for any purpose. It is possible to borrow $1000 within 24 hours. Some guaranteed cash advances are provided to those who meet the eligibility criteria within just minutes of their application.
Qualifying for a Loan with No Credit Check from a Poor Credit Lender
Financial institutions use credit scoring in order to determine the risk of default so very few customers who have experienced past credit difficulties will qualify. Instead, pawnbrokers and payday loan lenders use a different set of eligibility criteria. Their objective is to ensure that the customer earns enough to repay the debt and/or they have sufficient collateral to recover the value of a guaranteed cash advance.
Guaranteed Cash Advance from a Pawnbroker
Individuals who are able to offer an item of value, such as gold, jewellery, silver, electrical equipment etc, may be eligible for a pawn shop loan. Following a valuation, pawnbrokers offer same day cash loans with no credit checks. The item can be redeemed at any point by settling the debt by clearing both the principal and any interest that has accrued. Failure to redeem the collateral will lead to it being sold at the pawnbrokers to recover the value of the loan. Subject to the provision of satisfactory identification, the money will normally be provided in cash within a few minutes of applying.
Instant Bad Credit Loans from Payday Lenders
A same day payday loan provides a way of meeting a short term financial need, without the need to provide any collateral. In order to qualify for a guaranteed cash advance, the customer should be a U.S. citizen, over 18 years of age and in full-time employment. It is also necessary to have an active bank account (complete with checkbook) and two forms of identification. The customer provides the poor credit lender with a postdated check that clears on payday. Should the application be submitted prior to 2.30 PM, the money will reach the account within a few hours. It is possible to borrow money within 24 hours – guaranteed.
The Cost of Fast Cash Advance Loans
The high rate of APR means that instant bad credit loans can only be considered a suitable source of short term borrowing, normally for a single calendar month. It typically costs $20 to $25 to borrow $100 for a month so extending the repayment term is rarely a viable option. The cost of borrowing money will vary between poor credit lenders so it makes sense to check with a few outlets prior to signing-up.