Cash / Payday - Cash Loan

100 - 10 000
Cash Loan
Fast Cash Loan
Get a Cash Loan
Others
Quick Cash Loan
Cash Loan for People with Bad Credit

The fastest and easiest kind of loan for a person with bad credit to get is a cash loan. Individuals with bad credit can easily get a cash loan because no credit check is required to get many cash loans.

Lenders don’t require credit checks for cash loans because of the high interest rates they charge. The lender expects to get paid back quickly and collect quite a bit of interest so they can afford to make such loans to those with bad credit.

Many cash lenders market to people with bad credit because the money they make off such loans outweighs the risks they take by making such loans. A cash loan for people with bad credit will come with high interest rates and fees that will quickly add up.

The High Cost of a Cash Loan for People with Bad Credit

The biggest drawback to a cash loan for people with bad credit is the high cost associated with it. Many lenders will charge interest rates of 25% or more. This can add up to a hundred dollars added cost on a $400 cash loan for example.

Many lenders will also charge high fees on such loans. Some cash loans come due within a few weeks requiring the borrower to pay a fee to open a new loan. These fees can also add up to quite a bit of money over time. Keeping a cash loan open for several months can cost a borrower several hundred dollars in additional fees.

Income Verification

Cash loan lenders may not require credit checks but they probably will require income verification for people with bad credit. Income verification means that the borrower has to demonstrate they have the means to make the money to pay off the loan.

The lender may call the borrower’s employer in order to verify employment. The lender may also want to see a copy of the borrower’s bank statement to see if they have money going through the account. In many cases the lender will also want to see the borrower’s pay stubs.

Other Cash Loans for People with Bad Credit

A good source of alternative cash loans for people with bad credit is the pawn shop. Pawnbrokers lend money to anyone who can put collateral for the loan. Pawnshops don’t require credit checks because they can simply sell the collateral to cover their losses.

A pawn loan can be a better deal for a person with bad credit because it doesn’t lead to collections if it isn’t paid off. The drawback to a pawn loan is that the borrower will lose the collateral if they can’t pay.

Another advantage to pawn loans for people with bad credit is that a person usually has 90 days to pay off the loan. This can give a person more time to pay off a loan.