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6 things to remember about no credit check loans

[Jun 10, 2011.]

 

Getting your hands on a fast loan may seem impossible unless you resort to high-interest lenders. While you won't go through a rigorous financial screening process to obtain a no credit check loan, there are some costs to borrowing money this way. Don't make a trip to your local payday loan shop with considering these xx things about using no credit check loans.



  1. The guy at the payday loan shop is not your friend. Cash advance firms are in the business of making money, not building friendships. Don't expect any favors or special exceptions when it comes time to pay back a cash advance loan.

  2. You must have a source of income to borrow payday loans. That's because your next paycheck, Social Security check, or other check will be the source of funds to pay back the loan.

  3. As a borrower you will be required to write a post-dated check for the loan amount or provide a bank account number. Giving out your banking information for this purpose is a bad move and you won't have the same control over making payments on a loan.

  4. Paying off a personal loan obtained this way isn't always easy. You may think you'll be able to handle the payment when it comes due, but unless you get your finances in order it's likely that you'll be trapped in a cycle of growing debt.

  5. You will pay through the roof if you roll over multiple loans. For the convenience of getting a no credit check loan you must agree to pay interest rates that can top 300 percent APR. Do not borrow money without fully understand what rate of interest is being charged and how it is calculated. Federal guidelines require that you receive this information in writing before signing for a loan.

  6. Pawn shops offer another form of no credit check loans. However, these lenders require that you bring in some type of asset as collateral for a loan. Electronics, musical instruments and jewelry are some items that are commonly pawned in return for personal loans. Only go this route if you could live with losing the pawned item in the event you aren't able to pay back the loan.


You may feel desperate to get you hands on some money to pay bills or meet other financial obligations. But don't rush into a bad deal that could continue to plague you for years. Shop around to compare different loan products to make the right choice.

 

About Author:

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.

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