You thought the worst already happened. Now you’re struggle just to get by, pay the bills, and take care of your family. But something happened. It just got worse, and you’re looking for some cash loans with bad credit.
We’re not here to tell you what you should have done. We’re here to tell you what you can do NOW to help your family. And we’re here to help you through it then afterwards.
Financial difficulties do sometimes happen to the best of us. I know. That bad credit score doesn’t stop you from having a family emergency though, nor does it stop something bad from happening if you don’t pay for something. When you don’t have the funds set aside, when you don’t have the credit score to get a personal loan, and when you don’t have the time to do other things, you’re probably going to turn to one of the fast cash loans in that plaza or online.
If you do, here are 5 things you should know about bad credit loans before you apply to any legitimate lender or payday loan referral program.
5 Things to Know About Getting Cash Loans with Bad Credit
1. Bad credit truly doesn’t matter with these loans, but a bad credit lender will consider your regular sources of income.
Regardless of what online lender or local storefront you go to, those who give you cash outright will want to know you will have some kind of cash coming into your family household in the future. The idea is that your credit score is bad, or even extremely bad, doesn’t matter to them so long as they know they can get some funds from you down the road, either voluntarily or through more direct means if you don’t cooperate with them (which of course you will).
The point is, these kinds of loans are easy to qualify for. If you have some income that you can document, income that comes to you regularly, you really can get a cash loan when you really need one, even if your financial situation overall is a mess.
2. Quick cash loans will cost you dearly down the road. Are you ready for that?
There are primarily two basic ways of paying these debts back.
First, the company or lender will expect a very large sum every two weeks (or four weeks) depending on when your paychecks arrive, and then add a slight amount each time to go towards a pay off.
Second, the company or lender will expect a very large sum every two to four weeks (basically the same amount of “finance charges or fees” as in the first scenario, but will not add a mandatory extra amount to help pay the debt down. If you want to pay any part of your principle off, you’ll have to force yourself to pay even more.
In the first scenario, if you have a payday loan or cash advance, you could be paying somewhere around $250.00 or more every month for each $1,000 you borrowed , an approximate amount of $200.00 or so going towards the company’s “fees” and around $50.00 each month going towards your principle.
In the second scenario, you could be paying a couple hundred dollars every month and continue doing so until you force yourself to start paying down the principle. If you don’t add to that amount already taking a toll out of your family finances, you could be paying a couple hundred dollars for months or even years theoretically before you ever pay that debt down one penny.
If you get two $1,000 cash loans, double those costs.
Emergency cash loans with bad credit are very costly.
You may still choose, or feel impelled, to go this route anyway, but do understand what the cost will be to your family, and be prepared.
3. Payday cash loans with no credit check will be based on how much future income you can verify, not on what you necessarily need.
Most, if not all, of these companies that offer no credit check loans are depending on your future income, and what they can get hold of if you are not good at paying your loan back, to determine what they will give to you.
These are companies used to dealing with hardship cases, and they are willing to work with people in financial difficulties. They also understand you ARE having financial difficulties and have pre-determined percentages of what they feel they can get from your paychecks in return for a really risky (in their eyes) loan to you.
Understand you are entering into a financial agreement with a company that offers services to lots of clients in need and with less then perfect (sometimes very poor) credit, and at least appreciate the fact that these companies are either not permitted to, or not willing to, take your entire paycheck for your finance charge payments on the emergency loan with no credit report they gave you.
4. Bad credit cash loan lenders do not accept any “if”, “ands”, or “buts”. No way. No how. Or at the very least, you would not like what happens if you don’t pay what you are supposed to WHEN you are supposed to do it.
When you get a loan with these companies, and you miss a payment, you can probably expect some very forceful collection methods being released upon you. Many lenders have even included a clause in your contract with them that they can post the check they had you write to them in advance for the full amount as a condition of getting financial assistance from them.
If they don’t outright cash that check you wrote for the entire amount of the principle plus finance charges the very day you were due (which, coincidentally will be the date of your payday deposit and with bounce fees accessed by your bank if necessary), you’ll be faced with a very uncomfortable situation from people who are not willing to wait very long and are used to dealing with high risk borrowers.
It may be very difficult to follow through on the high repayments that come with no credit check loans. On the other side, it’s not a pretty picture at all if you don’t. If you don’t want to put your family under even more stress and possibly jeopardize the privacy usually afforded by these agreements, do not break the agreement you have with them.
5. Cash loans no credit check are more private in some instances than in others. Be alert to the different companies and loan sources if you REALLY need them to be fully private between just you and the company you are getting funds from.
While there are companies that may give you money without a credit check, a lot of those companies will at least run a Telecheck on or pull a Teletrack check from your bank account.
A Telecheck may not be so noticeable to others. The loan company may only be checking to see if you even HAVE a checking account from which they could cash one of your checks if you don’t pay or have a bank account from which they could debit from your account. That’s not so different than you writing a check at the grocery store and having them verify your account or the gas station taking $1.00 out of your card for one day before the entire transaction is reported to your credit holder, a means to verifying you have a legitimate card that works.
A Teletrack report is more like a credit report on your bank transactions, and that isn’t so private.
If you are applying for a credit card or a new job, chances are those individuals are checking your Teletrack report.
If you want the most privacy, check or ask what, if any, verifications, other than income, a cash loan lender might perform. Fortunately for you, most go only on your income, and nothing else, and at no additional cost to you.
Additionally, when it comes to privacy, online payday loans are usually debited directly from your bank account. If you ever have to show your bank account statements to anyone for any reason (like you do when getting a mortgage or filing for bankruptcy), those debited payments taken right from your bank account to a payday loan lender will be right there for all to see and know.
Additional insights about getting a cash loan with bad credit:
Contrary to their advertisements characterizing these bad credit cash loans and payday advances as short term loans for bad credit, (ie 30 day payback, 3 months payback, etc), those instant cash loans are not always quick pay backs.
The huge finances charges alone can sink a family budget, and those WILL keep going as long as that principle goes untouched each month. It will be tough, and you may find yourself wondering what to do about it all afterwards.
The fact that you’re still reading here tells this author you care enough to want to do the right thing through it all.
The best thing to do after an urgent cash loan is to pay the entire debt off as soon as you get the funds, your next paycheck if you can.
The next best thing is to pay your finance charge each month, or every two weeks, as indicated by your paycheck dates and loan repayment agreement.
However you do it, get that principle paid down as fast as you can or at least as much as you can as quickly as you can.
This is important! This is worth repeating!
If you can pay the entire amount off at your next paycheck, it will save your family even more struggles in the weeks or months to come.
If you can not pay your entire payday loan off with your next paycheck, pay something, anything at all, above and beyond your finance charge.
Each time you pay something off your principle, your finance charge for the next time will be smaller, about $25.00 smaller for each $100.00 of principle you pay down.
The trick to getting loans with no credit checks paid off is to pay them down, even a little every time, getting smaller finance charges along the way!
Before you take that cash off the table to begin with, ask your lender what is the least amount you can pay back off your principle each time and in what increments.
You are dealing with a lot right now. If prayers for you now count, then know I am praying for you!
As for the money you need quickly for whatever use your family needs it for right now, know that there are cash loans for bad credit available.
You just want to make sure you can make it successfully after you get one.
This is the first of a series of articles on no credit check loans for people with bad credit.
You will also want to check the following articles which will become active links as soon as they are posted on the site.
Other articles in this series of bad credit loan articles include:
1. Do You Need Cash Loans with Bad Credit? Read This. (THIS ARTICLE)
11. How to Consolidate Pay Day Loans
12. Payday Loans No Credit Check – Good or Bad?
13. Real Help for Bad Credit Loans
Please feel free to see related links below and on our site, or check back here to see the other articles above as they become available. Best wishes to you and your family.