Cash loans, also called instant loans, are short-term loans that are usually secured against the income of the applicant. If you are in financial distress or need money to fund your expenses between two paychecks, this is a great option.
Here are 10 facts worth knowing about no credit check loans.
- You don’t need a security. Since the loan is given after knowing your income, there is no need for a collateral.
- Loans can be processed in the same day. If you cannot wait for a traditional loan, you will be happy to know that cash loans are approved on the same day, and you can even get the money in your account within 24 hours.
- Some lenders accept phone application. Check for the terms and conditions and process of lending before you apply though.
- Your credit is important and not important at the same time. Some lenders will approve cash loans only if you have a decent credit score, but that’s not always true. You can get a loan even when things don’t seem very favorable.
- Lenders don’t want to know the reason. Typically, cash loans are small loans often not exceeding $750, so the lender won’t ask why you need the loan. You can choose to fund any requirement.
- Cash loans have a higher interest rate. Yes, that’s true. Consider this for the extra risk that the lender takes while granting the loan. It is also important that you check the costs and expenses related to the loan in all circumstances.
- If you have an un-discharged bankruptcy in your bank account, your application can be rejected. There are also a few other situations where applications can be rejected i.e. when the application isn’t complete or the person doesn’t have considerable income.
- Cash loans must be repaid on time. If you don’t repay the loan as per schedule, additional costs and charges will apply.
- You don’t need to go after a lender. The entire process will be completed online, and your privacy is guaranteed, so no one needs to know that you required a loan.
- There’s a limit to cash loans. Only a certain amount, usually between $500 and $750, can be borrowed through instant loans.
Check the requirements and how the payments will influence your next month’s payments. The terms of repayment are usually mentioned in detail, so choose what works for you better. Also, talk to the lender to clarify any doubt related to the advance.