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Using No Credit Check Loans Safely

By Edited Nov 13, 2013 0 0

No credit check loans are a good way to get cash when you have a bad credit score, but they have some serious down sides. By nature, a lender that isn't going to check your credit is going to charge you a heck of a lot more for a loan than a traditional lender will. Because of this, and the short terms that these loans usually carry, people get into serious trouble. In this Barrel I want to expand on this idea so that you can know how people get screwed up so that you can prevent it from happening to you.

According to the blog Fast Cash Authority, the main problem that people have with no credit check personal loans isn't necessarily their high price, it tends to be the short terms. The most common styles are title loans and cash advances, and these carry 30 or 14 day terms, respectively. What happens is that the borrower ends up in a worse position as soon as they pay the loan back then they were the day that they applied for it.

Title loans tend to throw people off the worst since they allow people to borrow a lot of money at once. It's a very effective way to get a lot of money fast, but title lenders are notorious for lending more than people have an honest shot at repaying. Since the loan is secured with your car as collateral, as soon as you don't pay it back they are in your driveway with a tow truck to repossess your car.

Cash advances tend to put people in a borrowing cycle where they have to rely on loans to keep their ship afloat. When you're broke because you just paid back your loan and the only place you can get more money is at the cash advance store it's easy to get stuck in this trap. Relying on cash advances is one of the worst things that you can do for your finances!

The key, should you decide that these loans are a good idea, is to work to make extra money to cover the repayment of your loan. If you can pull in enough overtime, work odd jobs, or sell some of the extra stuff laying around your house to cover the loan you won't have any problems at all. Without doing this you aren't going to be able to pay your bills or put food in your stomach after you get your next paycheck!

Just because you can get a loan doesn't mean that you should. There are a ton of different ways to raise extra money fast, or at the very least greatly reduce the amount that you have to borrow. Do everything in your power to do this and you will avoid all of this trouble completely!


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