Small Unsecured Cash Advance Loans for People with Bad Credit

A quick payday loan can be used for any purpose, but is regularly used to tackle a financial emergency. Turning to high street banks for a unsecured loan for people with bad credit will be met with certain rejection, but there are alternatives. Poor credit loan lenders offer quick cash loans with no credit checks to non-status customers who have been rejected elsewhere. Although the Annual Percentage Rate (APR) is higher, a fast unsecured loan is a way of borrowing money with an adverse credit history.

Small Unsecured Cash Advance from a Credit Card

Many customers turn to bad credit finance when it isn’t always necessary. Although more lenders are credit scoring existing charge card holders, many people with adverse credit still have an active credit card. The customer is allowed to withdraw a fixed percentage of the available credit limit from an ATM. Even though a higher rate of interest and an administrative charge will be incurred for making the withdrawal, it’s still cheaper than an immediate payday loan.

Emergency Cash Loan from a Family Member

Should ill health or temporary unemployment have led to a cash shortfall, a member of the family may be prepared to offer a quick cash advance loan. The major benefit of this is that it may be offered at a very low rate of interest which means that it is available for an extended duration. The problem is that non-payment of a small unsecured cash loan could lead to bad feeling between family members. If further problems are experienced, talk to that person and don’t just avoid the subject.

Immediate Payday Loans for People with Bad Credit

Unlike auto title and pawn shop loans, a payday cash advance is provided without the need for collateral. Rather than focusing on credit scoring, lenders require the applicant to be an American citizen, over-18 years old and in full-time work. In order that the money can be transferred to the applicant, two forms of identification and a valid checking account are also required. The fast cash advance lender must also be given a postdated check that clears on payday.

Annual Percentage Rate (APR) on Small Loans for Bad Credit

Although interest rates vary considerably between poor credit lenders, immediate payday loans regularly attract an APR of upwards of 500%. This means that if a customer wishes to borrow $1,000, they will need to repay $1,250 just 30-days later. The high risk of default means that no credit check finance is not a suitable way to borrow money for the long term or debt consolidation. Although an unsecured cash loan, non-payment will result in interest and charges accruing very quickly.

Pros and Cons of Unsecured Loans for People with Bad Credit

An unsecured cash advance loan offers tenants and non-homeowners a way of borrowing money with no credit checks or collateral. Bad credit lenders regularly assist customers who have already been rejected by the banks. The problem is that the absence of credit scoring means that it isn’t possible to assess the borrower’s credit worthiness which leads to a flat interest rate being charged. An emergency cash loan accrues interest quickly so repaying the debt will leave less money the month after.