Fast Short Term Loans for People with Poor Credit
A lot of people experience some difficulties when it comes to finances. There are times where it’s really hard to make ends meet and you can no longer wait for your next paycheck. During these hard times, you have no other option but to apply for an instant loan. But, what if you have a bad credit score?
Securing Fast Loan from Direct Lenders
Individuals who have urgent financial needs but have bad credit history have lower chances (or even no chance at all) of getting approved for a loan from traditional lenders. Because traditional lenders such as banks and other financial institutions require long verification processes and of course, credit checks, before they can approve a person’s loan application. Many people take a lot of consideration in applying for an “instant loan” from direct lenders.
Direct lenders are companies that provide the loan themselves. Many of these companies no longer require any collateral and a person can easily get qualified even if his or her credit history is poor. With direct lenders, there is no credit check. For as long as the applicant can provide them proof of income, he or she can easily get approved for an instant loan to help solve his or her urgent financial problems.
Find more out about the mortgage approval process here.
What are the Advantages?
There are some good reasons why many people choose to apply for fast short term cash advances from direct lenders. Aside from the obvious that it instantly solves a person’s current financial problem, it also avoids embarrassing situations (like asking for money from a friend), it requires less effort and documentation and the amount of loan will be directly credited to the person’s bank account in just a few hours. Compared to traditional lenders where it sometimes requires a person to visit them more often to follow up the loan, direct lenders have instant application processing and approval online.
What’s the Catch?
Most borrowers or applicants of short term cash advance use their loans to help cover unexpected emergencies or to cover their daily expenses for a period of one year. However, this type of loan became somehow controversial because of much higher interest rates, getting the borrowers “trapped” in a debt cycle. This means if the borrower is not able to pay the principal amount of debt, he or she will need to renew his or her loan every two weeks and will have to pay any additional fees until the borrower gets out of debt.
Any type of loan is not easy – especially if you have bad credit. It’s not just because it’s time consuming and can really be frustrating, but also because of high interest rates and other charges that you need to pay. Yes, applying for a loan can probably save you from your current financial situation, but, if you think about it a little deeper, you’ll somehow realize that you could have gotten more (try to calculate the total amount of interest that you will be paying plus other charges).
