Why Take Out a Fast No Credit Check Loan? Borrow Money with Bad Credit to Prevent Money Problems Today

A fast no credit check loan is a way of borrowing money for up to a month without the need for credit scoring. Unlike other methods of lending, it is normally possible to get approval for a no credit check loan in less than 15 minutes. Few mainstream lenders are prepared to offer poor credit customers a loan due to the risk of the borrowing defaulting on the agreement. This article seeks to provide advise in relation where to get a loan and the circumstances where it can benefit someone.

Fast No Credit Check Loans

The most common places to borrow money with bad credit are a payday lender or a pawn shop. Whilst they are both criticised for exacerbating money problems, they do at least cater for a section of society that is completely neglected by high street banks. Without them, consumers looking for a fast cash advance would only be able to borrow money from a completely unregulated loan shark.

A No Credit Check Loan for Short-Term Financial Problems

A fast no credit check loan is normally a bad option for someone who has little disposable income. This is because it typically costs $20 to $25 per month for every $100 that is borrowed. However, an individual who can afford to repay the principal and interest without causing financial hardship the month after stands to benefit from a loan.

Borrow Money with Bad Credit

An individual who has defaulted on a credit agreement in the past is likely to be ineligible for mainstream financial products. Consequently, a fast no credit check loan provides a guaranteed way to get approval when other lenders would almost certainly reject the application. A loan until payday is unsecured which means that no collateral is required.

A Fast Unsecured Loan for an Emergency Situation

Should unexpected circumstances create a cash shortfall, a fast no credit check loan could provide the answer. One of the most common reasons for a loan until payday is to pay the rent, mortgage or a utility bill. Whilst borrowing money at a high rate of interest isn’t advisable for a foreign holiday or electrical goods, preventing eviction is a more than sufficient justification.

Pros and Cons of Fast No Credit Check Loans

No credit check loans can form a useful function if used properly. They aren’t simply a way to borrow money with bad credit, they can help someone to deal with a genuine financial emergency. However, the rate of interest is extremely high so they aren’t suitable for borrowing over the longer term. This will leave less money available the month after so this issue will need to be addressed.

Consolidating a Student Loan Has at Least 5 Benefits

It is quite easy to get fed up of having to pay an interest every month on your educational loan with no signs of any respites. However, as this is something which I have experienced myself I can tell you that there is a way to get out of this dilemma by having a consolidation done on your student loan.

Know more about the consolidation of a student loan

If you have more than a single student loan and are getting bogged down with paying several installments every month, you could make it easier for yourself by changing this into one single loan and paying just one installment. All your previous loans will be nullified as they will all be consolidated into this one new loan. It is much easier to handle just one loan than several.

The many plus points of consolidating student loans

You get a lot more benefits when you consolidate your student loan. To name a few;

You have to pay a lesser amount towards the loans every month. As all your loans have been merged into one loan, you have to pay a smaller amount every month towards your single loan.

You have only one deadline to think about every month. If there are several loans to pay back and several deadlines to remember you may tend to forget one of them and get into trouble for non repayment of a loan and get a bad credit. This way you only have to remember one deadline every month which is a lot easier.

By merging your loans you can get a low interest rate which is a fixed amount. According to the present day law the payback rates for a merged student loan cannot be more than 8.25%. The national rates for interest are the lowest in the last four decades and this is beneficial for all those who have student loans.

There are no checks for credit cards or fees involved for going ahead with the processing of your loan. When you apply for a merger of your student loans there is no requirement to check your credit card nor is there a rigid method of paying back. This is done to suit your own financial state and can be made comfortable for you.

You can make your payments online or electronically. You have the option of paying back according to your convenience but if you do so electronically you will get a rebate of 0.25% on the loan rate. It is also more convenient as this will be paid regularly from your account and there is no question of your missing out on a payment or forgetting about it.

It may not always be quite clear as to what the criteria for qualifying for a student loan is. However, it has been officially decided that if the students are still within their stipulated grace period, and are as yet studying, they are eligible to have a their student loans merged officially. The loans which are granted by the government towards merger of student loans are at a much better rate than those offered by private organizations. To save money and get a better deal it is advisable to go for a government loan for students.

Credit-building Credit Cards to Repair Your Credit Score

When you’ve defaulted on the terms and conditions of your credit agreement, bad credit will show on your credit report for the next 7 years. If you plan to apply for a mortgage, unsecured loan, car refinancing or a private student loan you may wish to use credit-building credit cards to help repair your credit score. Don’t believe credit repair companies that claim to be able improve your credit score overnight or get you a completely new credit report. This simply isn’t legally possible if you’ve recently defaulted.

Types of Credit-building Credit Cards to Fix Your Credit Score

Although there is no such thing as rapid credit repair, there are several different credit cards to rebuild credit. Creditbuilder, unsecured and secured credit cards report to credit reference agencies each month so each punctual repayment will lead to a gradual credit score improvement.

Best Unsecured Credit Cards to Rebuild Credit

If you aren’t able to offer the issuer collateral, an unsecured card can help to fix your credit score. It’s important to appreciate that the initial limit is likely to be just $250. There are also several charges that must be cleared before using the card so that you have some credit to work with.

The limit on a unsecured credit-building credit card is normally subject to review after a period of 6 months. Provided that you pay punctually and avoid maxing-out your card, this is likely to be increased. Limits are low to begin with in order to minimize any potential losses in the event of default.

To maximize your credit improvement, you should avoid using more than 30% of your limit each month. This is because the Fair Isaac corporation formula looks closely at credit utilization so you don’t want to appear too financially stretched as this is perceived as a warning sign.

Secured Credit Cards to Repair Your Credit Score

If you need a higher limit, a secured credit card will help you to achieve this goal. Just deposit a sum of cash equivalent to the limit you require. You’ll need to settle the outstanding balance each month, but if you do this within the grace period you can avoid the payment of interest.

You protect the financial interests of the lender through the provision of collateral, such as property or a cash deposit. If you default on the terms of the agreement, you stand to lose your security. For this reason, it is generally inadvisable to secure the debt on the family home.

Using Creditbuilder Credit Repair Credit Cards to Rebuild Credit Ratings

A credit-builder card involves getting a small loan from the issuer which you repay as a management charge over the next 12 months. Provided that you pay on-time, this will be reported to Experian, Equifax and TransUnion. One of the best credit-building credit cards when seeking to repair your credit score and avoid debt problems. Unsustainable debt is the cause of past and future credit problems.

How to Apply for No Interest Job Centre Crisis Loans from the DWP

Although it’s often perceived as a loan for people on benefits, this isn’t the case. You don’t have to be out of work to qualify so don’t let that deter you from applying. A job centre plus crisis loan is provided from a social fund to meet an extremely urgent short-term financial need.

Your need to borrow money must be both urgent and a short-term requirement. For example, you’re waiting for your first benefits payment to reach you and can’t afford to feed your family. Once you receive payment, pay it off.

If you don’t qualify for a quick cash loan from the DSS, you can appeal against the decision. There is a formal process in place that could help you to get the decision overturned. You may also be eligible for payday credit, a pawn shop loan, a credit union cash advance or be able to borrow money from a doorstep lender. They aren’t interest-free, but provide a way of making it through to to the next month.

How Much Can You Get a No Interest Job Centre Plus Crisis Loan for?

The DWP doesn’t specify any upper limit, but a quick phonecall revealed that you may be able to get an interest-free fast cash advance loan of up to £1,500. They will individually assess your employment status, sources of income, cash in hand, availability of credit, benefit entitlements, savings and whether you’ve taken out a loan with no interest from the social fund previously. It’s usually advisable to try to justify a slightly higher figure because they regularly offer applicants a reduced sum of money.

If you have a very bad credit history, you probably don’t have your own checking account to deposit the funds. If this is the case, you can open a basic bank account at any major high street financial institution. As an alternative, you could open a Post Office® card account or credit union bank account. This will be necessary as you’ll need somewhere for them to deposit the funds.

Eligibility Criteria for Job Centre Crisis Loans with No Interest

  • You must be a minimum of 16 years old.
  • Your family lacks the sufficient financial resources to meet a short-term need. This situation must be classified as a short-term financial issue and not a long-term problem.
  • Without the provision of an interest free loan from the DSS, there would be a serious risk of harm to either or both you and your family.
  • If you’re currently in receipt of a community care grant, are moving home and don’t have enough money to cover the deposit for a non-local authority landlord.

Private Sector Quick Cash Loans for Unemployed People & Low Earners

  • Fast cash loan for up to £1,000 from a payday lender.
  • Collateral-based pawnbroker loan.
  • A doorstep cash loan for bad credit scores.
  • Poor credit loan from a credit union.
  • A credit card cash advance from an ATM.
  • Guaranteed family loans.
  • Store credit or a hire purchase agreement.

Procedures when Your Application for a DSS Crisis Loan is Rejected

Although strict guidelines are followed, the decision remains subjective. If you’re not satisfied with the outcome, you should appeal within 28 days of the decision. In the first instance, you should write to your local job centre explaining the reasons why you believe that the decision was wrong. If you remain unhappy, you can request that the matter is reviewed by a Social Fund Inspector. Know your rights when applying for a job centre crisis loan and don’t delay if you intend to appeal against the decision.