Fast cash loans enable a consumer to borrow money quickly due to the absence of credit scoring. Provided that the consumer is a citizen of the country, is in full-time employment and is able to supply photo identification. No credit check loans are only suitable for short term borrowing in order to prevent interest spiraling out of control. The standard term for a same day payday loan is one calendar month.
Advantages of Fast Cash Loans
- Emergencies. A fast unsecured loan can help a consumer to deal with an emergency situation, such as paying the rent, mortgage or a utility bill. It is a better alternative than eviction.
- No credit check loan. The absence of credit scoring means that it is possible to borrow money with bad credit, regardless of how serious a previous credit transgression was.
- Speed. It is normally possible to get approval for a fast no credit check loan in just 15 minutes. Pawn shops will provide a cash advance in a matter of minutes.
- Any purpose. A fast unsecured loan can be taken out for any purpose. The lender isn’t concerned with whether they are using the money to buy groceries or pay for a holiday abroad.
Disadvantages of Fast Cash Loans
- High interest. It typically costs $20 to $25 each month for every $100 borrowed. This is very expensive when compared to other sources of borrowing, including credit cards where the cost is approximately $1 to $2 a month – this includes a credit card cash advance.
- Dependency cycle. A same day payday loan will leave the borrower with less money to pay the bills the month after. This could create the need for a further loan unless the individual has a way to bridge the gap, such as working overtime or a quarterly bonus.
- Late payments. Interest and charges will quickly spiral out of control in the event of non-payment.
- Personal debt. Increasing the amount of money owed not only attracts interest, it will leave less money available in the future.
Are Fast No Credit Check Loans a Sensible Idea?
A fast cash loan can help a consumer who is experiencing a short-term difficulty paying his/her bills. It is guaranteed to be approved, provided that the eligibility criteria are complied with. Even those who aren’t in full-time employment may be able to get a pawn shop loan, although they will require suitable collateral. The main issue is the cost of borrowing as a short-term loan will leave less money for the month after.