No matter how bad someone’s credit history, it is still possible to get approval for an unsecured cash loan with no credit check. The absence of credit scoring means that it is a guaranteed emergency cash loan for those who are able to meet a very basic set of eligibility criteria. A quick cash advance should only be considered a short term loan as the rate of interest is high and isn’t sustainable over the long term. However, as it is only available for a calendar month, its repayment is normally very affordable.
Unsecured Cash Loans vs Pawn Shop Loans
A credit union or instant cash payday loan can help someone out of a short term financial hole. Those who don’t meet the eligibility criteria, perhaps because they are unemployed or don’t have an active checking account, may be able to get a loan from a pawnbroker. However, the borrower will need to provide the lender with collateral (gold, jewelry, electrical equipment etc). The representative will value the item and offer an emergency cash loan based on its value. If the item isn’t redeemed, it will be sold on in order to clear the debt.
No Credit Check Instant Cash Payday Loans
The eligibility criteria used by payday lenders is completely different to that used by the banks. Although there is no credit scoring for an instant cash payday loan, the borrower will need to be a U.S. citizen, at least 18 years old, in full-time employment (minimum income $1,000), have a valid checking account and provide 2 forms of identification. The cost of a $500 emergency cash loan is about $125 a month. It is important that both the principal and any interest that has accrued is repaid at the end of the term.
Unsecured Credit Union Loans
A credit union is a non profit organisation that operates purely for the interests of its members. People typically join on the basis of locality, employment or religion. Once a member, it may be possible to get an unsecured cash loan. Although the repayment terms of a credit union loan are the same as an instant cash payday loan, they will provide greater assistance in the event of money issues.
Pros and Cons of an Emergency Cash Loan
An unsecured cash loan from a credit union or payday lender can help someone who is struggling to meet a short term financial obligation, such as paying the rent. Although there aren’t any restrictions on how the money should be spent, it shouldn’t normally be seen as a way of funding a lavish holiday. An instant cash payday loan isn’t cheap so any interest and charges will quickly accrue in the event of default.