Beware Of No Credit Check Payday Loans

When we’re desperate for some ready cash, those no credit check payday loans can sound awfully tempting. An instant solution to getting back on track – not!  Here are some reasons why this type of loan isn’t a good option. In fact, you should consider this your option of last resort.

Most likely, the words ‘no credit check’ are what catches your eye and tempts you. If you’re considering a payday loan, you probably have poor credit. You may think it’s the only way you’ll be able to get the cash you need. These lenders know that if you’re willing to take such a loan, you are desperate for immediate cash and have bad credit. So why are they willing to make the loan? It’s extremely lucrative for them and it’s virtually guaranteed they’ll get their money. While you can’t accuse them of fraudulent advertising – every word in the phrase ‘no credit check payday loans‘ is accurately represented – you’ll be digging yourself into a much worse financial position by the time the transaction is concluded and the loan is repaid.

When you apply for an advance cash payday loan, all you need to qualify is proper identification and your most recent pay stub. The lender then calls your employer for verification of employment and how long you’ve been on the job. Presto! You’ve got cash. So now, for the down sides of this arrangement.

Interest rates on these no credit check payday loans typically runs in the neighborhood of a flat rate 30%! This translates to a $500 loan that costs you $650 to repay from your next paycheck! Unless your paycheck is quite large, it’s easy to see how this can blow a giant hole in your budget. That $150 interest charge can still, even at today’s prices, buy a lot of food. While the payday loan may have enabled you to meet rent or your car payment, it’s also certainly worsened your cash flow! Will you be able to meet your monthly expenses next month, on time?

When you’re strapped for ready cash, there are better alternatives. Don’t wait until the last minute. Surely you know at least a couple of weeks in advance that you’ll be in this spot. This is the time to hold a garage sale! Have the whole family go through their belongings and hit the garage too! You’d be surprised to find that you’ve got lots of stuff you either don’t use or need. Clothes, toys and gadgets are quick sellers at garage sales. If you’ve got gold jewelry or diamonds, take them to a pawn shop and add that cash to your growing fund. Pawn shops generally charge 10% interest and you have three months to redeem your goods. You might also see if you can get an advance on your pay … sure, it’ll be deducted from your next paycheck, but you’re still ahead $150 you don’t have to pay on that no credit check payday loan! Ask relatives if they might loan you some money on a short-term arrangement.

If you take all these measures to raise the cash you need, chances are you can avoid taking the costly, no credit check payday loans. They’re just not a smart move!