Do You Have Bad Credit and Need Money Fast?
No Credit-Check Cash Advances, Pawnbroker Loans & Payday Loans
Feb 19, 2009
Unless a home owner, having a bad credit rating can prevent someone who needs money fast from getting a personal loan. When struggling with financial difficulties and an urgent need to pay the mortgage or rent crops up, this can present a real problem. However, it is possible to get a no credit-check logbook loan, payday loan, pawnbroker loan or even a credit card cash advance.
Overcome Short Term Financial Difficulties with a Payday Loan
No credit-check payday loans are a source of short term, unsecured borrowing for those who need money fast and have a bad credit rating. They allow someone with financial difficulties to borrow up to £1,000, often receiving the cash on the same day. An applicant will need to prove that they are at least 18 years old, have a bank account and are in full time employment.
No credit checks are performed so they appeal to people with bad credit, adverse credit, County Court Judgements or CCJs, defaults and bankruptcy. A no credit-check payday loan helps someone negotiate financial difficulties.
Borrow Money with a No Credit-Check Pawnbroker Loans
A pawnbroker loan works on the basis of lending money based upon the provision of collateral, such as jewellery. The majority of pawnbroker loans are for between £5 and £150 and are usually over a term of up to 6 months. Pawnbrokers will lend up to 50% of the collaterals valuation price. This conservative lending strategy is designed to cover both the high APR and resale in the event of loan default.
Although still a high APR, the interest charged on Pawnbroker loans is considerably lower than Payday loans. The annualised rate of APR on no credit-check pawnbroker loans is about 125%. This is because those choosing to borrow money from a pawnbroker need to provide collateral. Payday loans require no collateral at all, which explains why the annualised rate of APR is in excess of 1000%.
Logbook Loans May Help Those who Need Money Fast
A logbook loan allows someone to borrow between £500 and £50,000. Logbook loans are a no credit-check source of finance that is secured on the family car. They can be taken out even if bad credit or financial difficulties are an issue. The rate of APR is about the same as it is on payday loans.
Credit Card Cash Advances and Short Term Financial Difficulties
If someone took out a credit card prior to when a bad credit rating is a problem, it is possible to get a credit card cash advance. The rate of APR is higher than regular credit card debt and other charges will be applied, but it remains the least expensive way to get money fast when financial difficulties are an issue.
Those who need money fast should only seek to borrow money if an urgent need exists. Whilst short term financial difficulties can be overcome with: logbook loans, Payday loans, credit card cash advances and pawnbroker loans, none of these constitute a long term solution to money problems.
Those that found this article useful may also be interested in reading about how to eliminate credit card debt and avoiding loan sharks. A comparison of secured loans and unsecured loans will help someone decide which is the better option.
 |
 |
 |
 |
 |
